Hi-Crush Cuts Dividend, Pricing Forecasts For Frac Sand Still Bullish

It was the best of times, it was the worst of times. Yes. That's a Charles Dickinson quote from A Tale of Two Cities.
Hi-Crush Partners (HCLP) finally made the move certain investors were clamoring for, which was to progress further on the track towards becoming a C-Corp. I could care less about the move, as investors who think the stock is trading on these news events are foolish.
Both, frac sand players and oilfield services companies, alike, are falling for the same reason: high costs and capital intensive structures, combined with a temporary slowing in completions, are causing margins and earnings to shrink. If that is not the reason, then it is far more sinister...it is due to de-bundling (which we have talked ad nauseum about).
If HCLP is falling for the dividend, then why do other frac sand players who don't have a dividend follow suit? Do you really think HCLP is somehow blazing its own trail with the eventual C-Corp conversion, and therefore it trades with a mind of its own? They fall in sympathy with one another because algos dominate the trade. Then short traders jump on board. It can't be any other reason.
This is why I am staying long frac sand players like HCLP, dividend or no dividend, because PRICING fears are wrong. Let's analyze why a Tale of Two Cities exists with frac sand players, white rail vs. brown trucked, and why this will always create a stable in-basin pricing environment for the long-term.
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