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Re: BigIronOnHisHip post# 6929

Monday, 08/25/2014 11:40:19 AM

Monday, August 25, 2014 11:40:19 AM

Post# of 15432
Very good video clip from Jim Cramer's show last week. I saw that interview myself and was impressed by the comments of how strongly frac sand demand is growing now. The additional comment about a shortage of rail cars to ship the sand was also important and may turn out to be an excellent opportunity for Double Crown's Transprop container to come into play soon.

Here's a transcribed synopsis of the segment below...

LINK:
http://www.thestreet.com/story/12830509/2/jim-cramers-mad-money-recap-12-stocks-even-better-than-google.html

Emerge Energy

In today's installment of his "Behind the Boom" series featuring America's oil and gas renaissance, Cramer spoke with Rick Shearer, CEO of Emerge Energy (EMES) , the fracking sand provider that has seen its stock soar 600% since its IPO in May 2013.

Shearer explained that the type of natural sand that Energe provides is the perfect material for 90% of the hydraulic fracture wells out there today. He said while ceramic materials are better in some cases, they cost $700 to $800 a ton as compared to just $60 to $65 a ton for sand.

Shearer continued that Emerge is already doubling its capacity, bringing another five million tons online this year, making it the leading provider in the industry. The company is not stopping there, however, and already has another mine and plant in development.

Emerge's biggest problem, though, is a lack of rail cars to ship the product, Shearer explained. He said while the company uses 4,600 rail cars today, nearly 8,000 will be needed to support the new mines being built.

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