Just about 50 days ago, Heckmann (HEK) announced the deal to purchase Power Fuels. The deal turns Heckmann into a domestic leader in the wastewater removal industry supporting the shale oil and gas boom. See our article "Heckmann Makes Game-Changing Merger" for more details on the deal.
While the stock initially popped from just above $2.50 all the way to $5, it has now slumped all the way to the $3.60s. Lower drilling in the domestic U.S. where both Heckmann and Power Fuels operate has impacted the excitement over the deal.
Have the economics really changed that much to warrant a 30% drop? Makes us wonder what is going on.
Read the full article at Seeking Alpha.
Disclosure: Long HECK. Please review the disclaimer page for more details.