RE: RE: Time to abandon this ship Is this considered a slaughter?
It never fails to surprise me when people expect an individual stock to buck the trend of their sector. Canyon's main public competitors are TCW and CFW. FRC has consistently performed well wrt cost control, utilization, dividend return, and EBITDA margins. A little unrealistic to expect them to deliver 45% margins in this part of the Canadian cycle; E&P's are not doing as much fracing, and no matter what FRC does, the E&P's won't spend more money until they are ready to. So companies like FRC, TCW and CFW live with lower margins and control their costs without gutting the company, so they are well positioned to take advantage of the next upswing in activity. When evaluating a service stock like FRC, attention should be paid to how they are doing relative to their peers in this market. Of course revenue is down! Of course margins are being squeezed! Look at the industry activity levels! Who is going to be best positioned to deliver stellar results when things pick up again? (and activity always picks up again. Always).
Unrealistic expectations on margins and dividend returns results in a story like T.PSN. That would be my definition of "a slaughter"