007,
As I had suspected the oil producing countries weren't going to sit on their hands and lose billions much longer, and an "overnight" agreement would eliminate the short term oversupply of oil.
Now that that has happened, and MAVK shot through 16 to 17, I am still bullish. Not sure yet, but I think MAVK may have led the oil service industry on the upside today.
As for the price of steel, MAVK has about $.40 to .50/share of additional profit heading for the bottom line this quarter for savings on steel purchased last quarter. Seems like margins and profitability were OK before the price of steel dropped, so MAVK should be OK if steel prices go back to where they were. In the meantime, higher priced oil means drillers, who never really slowed drilling, but may have allowed their inventories to float down as a precautionary measure, may now step up their orders to restore inventory levels.
Seems like any increase in the price of steel will be offset by increased shipments of pipe in future quarters. IMHO.
Your thoughts? |
