Got to be a big order in the wings, or else hedging.
Nothing else could explain this kind of action, IMHO. Although the oil drilling sector is coming back, it's not coming back quick enough to explain this percentage gain. Therefore, I conjecture that the order must be for some of the new product lines rather than the traditional ones. Or else it is hedging of the commodity.
I agree that the financials do not appear to justify the move. However, the same was true in the drilling sector a few years back, and then the prices took off like rockets. When I first bought MAVK, it was because of a low PE with reasonable chances for an increasing market share if the folks worked hard and exchange rates didn't go against them. Therefore, I will hold until about 20 or so, which may happen soon or never.
If the current move has been generated by private money tied to the company, the bounce won't last. If, however, it reflects general knowledge of future orders, or perhaps -- even better -- hedging by users of tubing (buying shares in a tube manufacturer is cheaper than buying inventory or "tube futures,") then there should be continued volume at this level to maintain the price.
Do your own DD. Do not base investment decisions on Internet postings unless you can afford to lose your shirt (or, in the case of MAVK, have your money go down the tubes). |
