Thread regarding Newpark Resources Inc. layoffs

PR for Newpark

From a brokerage analyst who sums up what we have ALL said the past 5 years:

Some stocks are best avoided. We don't wish catastrophic capital loss on anyone. Spare a thought for those who held Newpark Resources, Inc. (NYSE:NR) for five whole years - as the share price tanked 87%. And some of the more recent buyers are probably worried, too, with the stock falling 86% in the last year. The falls have accelerated recently, with the share price down 80% in the last three months.

We really feel for shareholders in this scenario. It's a good reminder of the importance of diversification, and it's worth keeping in mind there's more to life than money, anyway.

Newpark Resources isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

In the last half decade, Newpark Resources saw its revenue increase by 1.1% per year. That's far from impressive given all the money it is losing. Nonetheless, it's fair to say the rapidly declining share price (down 34%, compound, over five years) suggests the market is very disappointed with this level of growth. We'd be pretty cautious about this one, although the sell-off may be too severe. We'd recommend focussing any further research on the likelihood of profitability in the foreseeable future, given the muted revenue.

While the broader market lost about 17% in the twelve months, Newpark Resources shareholders did even worse, losing 86%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 34% per year over five years. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. It's always interesting to track share price performance over the longer term. But to understand Newpark Resources better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with Newpark

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Post ID: @OP+145bPdqh

11 replies (most recent on top)

US rig count down 44 this week. Meanwhile PH is figuring out how he is still going to reward bonus $$ to the execs and him along with MORE worthless stock options. Karma really is a B–ch

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Post ID: @6hka+145bPdqh

Current US rig count 728 rigs. Will probably be 575-550 or less by 6-1-2020 unless there is drastic change in Oil and NG pricing in the next 2 months. Went to less than 450 rigs in 2016 .

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Post ID: @6dad+145bPdqh

nr will be on the discount shelf at the 99 Cents Store because it is now trading for 88 Cents.

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Post ID: @6ruf+145bPdqh

NP has nothing but uneducated hypocritical buffoons running the company. They preach to be proactive, yet they (the execs and BOD) are REACTIVE!! Typical corporate BS

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Post ID: @5gyj+145bPdqh

Nabors announces salary reductions, cuts spending immediately:

A recommendation by management to the Board of Directors to suspend the dividend on Nabors' common shares

Salary reductions totaling 20 percent for each of the CEO and CFO, as well as a 20 percent reduction in the annual retainer paid to non-employee members of the Board of Directors

Salary reductions of 10% for U.S., corporate and expatriate employees with base salaries exceeding $100,000
The Company is also actively reviewing its organizational structure and taking additional steps to further streamline its operations, all with the view of improving liquidity while still retaining the ability to deliver safe and outstanding performance to our customers.

Given the uncertainty in the current market conditions, primarily in the Lower 48, Nabors has withdrawn any previously-issued guidance for its full-year 2020 results. The Company expects its first quarter 2020 results to fall somewhat below the guidance provided on its fourth quarter earnings conference call.

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Post ID: @5ibm+145bPdqh

Guess you will be able to buy nr @ the 99 cents store pretty soon.

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Post ID: @5ban+145bPdqh

Check out the just announced salary cuts at OXY according to WS Journal

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Post ID: @4ezh+145bPdqh

SLB announces they are cutting 2020 budget 30%. Nothing out of nr so far announced

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Post ID: @3qka+145bPdqh

A roll of toilet paper is worth more than a share of Newpark

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Post ID: @2ejk+145bPdqh

Ring it up— $0.97 Cents market cap now less than $100 M

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Post ID: @2shs+145bPdqh

And 2 of the quote "biggies" (Blackrock and Vanguard) own apprx 27% of the common. A perfect team of investors for this pos stock. Wonder if any of the bod will do the right thing and resign next week?

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Post ID: @imx+145bPdqh

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