Earnings Questions I just read the earnings report last night. The stock has been so beat up that it piqued my interest. However, after reading the report I have some questions.
I never noticed any disclosure as to what the utilization rate was nor the average daily rental rate. To me this financial metric is key and is very similar to Revenue Per Available Room in the hotel industry. To get any idea of what kind of revenue this company will generate you need to make assumptions about future day rates and the expected utilization.Hard to do that when you don't have a starting point.
I also noticed that one company makes up 13% of Poseidon's revenue yet the company name is not disclosed.Also, is the bad debt write off an anomaly or the beginning of a trend as oil and gas companies get squeezed with lower commodity prices especially in Bakken.
To me it seems like the fluid storage business is largely a commodity business where it didn't take long for additional tanks to hit the market when prices were high. What is Poseidon's competitive advantage?
Finally, some here have been bashing Carter. He is voicing his opinion and he provides reasons as to why he thinks a certain way. You can choose to agree or disagree with him. To me, bashing is when someone makes statements with no supporting reasoning.