Basic Energy Services Inc. (fka BASXQ)

[T4KingOff]

BASX - $700 mil revs a year / $100 mil in net assets. Trading with a $5 mil market cap. 3 Months ago we were over $2, 52 wk high is over $6.00.

On net assets alone we should be at $4.00 a share. Not a hint of bankruptcy concerns here, just an OG ticker that was pummeled down here from NYSE delisting.

They have now hired a very impressive new CEO, formerly Baker Hughes Canada President. https://www.businesswire.com/news/home/20191219005837/en/Basic-Energy-Services-Announces-Appointment-Keith-L.

Just last week they cut one segment of their business that was unprofitable and used way too much capital. They are becoming leaner and more profitable.

These guys are for real and are turning the corner. NEVER should have dropped this low. After their most recent quarterly , this is what analysts predicted (November 2019):

"Analysts trimmed their valuations, with the average price target falling 13% to US$2.55, with the ongoing losses seemingly weighing on sentiment, despite no real changes to the earnings forecasts. There’s another way to think about price targets though, and that’s to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Basic Energy Services analyst has a price target of US$5.00 per share, while the most pessimistic values it at US$1.00. We would probably assign less value to the analyst forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. As a result it might not be possible to derive much meaning from the consensus price target, which is after all just an average of this wide range of estimates."

We are currently trading at 0.25!!