Friday, March 1, 2013
Heckmann Unreasonably Hammered By Downgrades
It wasn't too long ago that Heckmann Corporation (HEK) had completed an accretive merger that should've driven the stock higher. On the way to large gains, the market for environmental services has hit road bumps as demand for shale drilling has declined. Oddly though, analysts have become more constructive on the oil services stocks outside of this general area.
The company is a leading environmental services provider dedicated to the movement, treatment and disposal of water generated by energy companies involved in the production of oil, natural gas liquids and natural gas.
The game-changing merger with Power Fuels (see Heckmann Makes Game-Changing Merger) promised significant improvements to margins and profits, but did the owners of that company become the big winners?
Read the full article at Seeking Alpha.
Disclosure: Long CJES and HEK. Please review the disclaimer page for more details.