- Despite the company beating expectations and producing all out, the shares crashed 20% on Q2 earnings as there are some cost increases related to capex and litigation.
- Capex will temporarily increase but this will expand capacity as well as margins, so we view this as a positive.
- The fracking boom, which underpins much of the company’s progress also seems pretty well set for the near future.
- A considerable uncertainty is the patent infringement case brought by a competitor, although management seems certain about winning this.
DMC Global Thrives On The Fracking Boom
October 3rd, 2018 · No Comments