I take amusement watching MAVK day to day, because in truth, it doesn't matter to me.
I invested in MAVK based on the fundamental strength of their business model and management. I like the earnings potential from focusing on steel pipe, and the growth potential given the current size of the company.
However, I also invested knowing that a weak oil sector would basically hose 1998 for Maverick.
When investing, I find always dangerous to find value without understanding *why* it is valued the way it is. Then, you can personally assess the reasons, and decide whether you think they are too harsh, short-term, etc.
For me, I saw MAVK as a growth stock (in a pretty traditionally low-growth market) which got sheared by a depression in oil. From my view, I see very little risk in assuming that oil will rise in price long term. With that, I see Maverick as a great value, because although the market is punishing them for slower growth, they will do fine in bad times, and great in good times. I can wait for the good times.
As long as the data that is negative on MAVK is market-related and not company-related, I will hold happily. I will not be buying more soon, however (I've already purchased a sig. number a shares - significant for me, not the market :)
I do believe that as oil rebounds eventually, I can easily see Maverick returning to prices in the 20s and 30s in the next couple years.
Seeing Maverick at $12 doesn't exactly make me happy, but it's nicer than $10. |
