Turnaround Play in the Oil Patch

 After the recent oil market correction, Basic Energy Services is forming a bottom.

There’s nothing like a turnaround situation in the oil patch. Basic Energy Services (NYSE: BAS) is greatly down from its 52-week high in the mid-$20s. The company has restructured operations all year and gotten rid of piles of debt. The oil and gas sector is stable, and Basic Energy Services is seeing improvement for its facilities services.

Earnings misses have knocked the company’s shares down to levels where insiders have been buying. The last time  shares were at this level, insiders piled in and shares went on a nice upward trajectory, moving above $11 before the recent correction in the oil markets.

That correction brought the whole market lower, including Basic Energy Services, which fell under $5.50. Insiders, notably a large private equity firm, piled in again under that level, which indicates we are close to a bottom between $4 and $6.


Trending Articles
facebook twitter
Popular posts