Dr Eye, reading the MAVK report - a few brief observations:
the CEO's comments:
<<Drilling rates in the United States during the quarter were down 7%, due primarily to a 27% drop in oil related drilling compared to the previous year. ...Gregg Eisenberg, President and CEO said ''Industry conditions and the resulting demand for our energy related products declined sharply during the quarter. Oil prices were very weak, down by almost 26%, reducing oil related drilling to record low rates. We believe OCTG inventories were reduced in light of slack demand, further depressing the demand for new OCTG products. Finally, imports continued at high rates, capturing an increased share of the lower demand level. In addition, weak demand contributed to a decline during the quarter of OCTG prices. On the other hand, our industrial products sales continued at a brisk pace, contributing significantly to our overall results.''>>
his comment, "reduce oil related drilling to record low rates" is odd since drilling rates are not at their lowest. they're about average for the past ten years. wonder what time frame he is using.
his mentioning that "imports continued at high rates" is probably the greater reason for MAVK doing so poorly. if an oil company can buy it in Asia for 40% off the price, it will.
don't know if this is the whole issue associated with MAVK since I've not looked at them for over a year now. |
