CARBO Ceramics, Inc. (NYSE:CRR)

Look it up

Unfairly beaten down. A great value. Growing revenues, earnings, and dividends. Plenty of excess production to meet future increases in demand.

dg

Going to base this pick on the advice of others.. they all think it's going up, and most have picked it up in the mid-40's.. now that's it's sitting at 37.50, time to get in.

Carbo Ceramics is the high volume producer of lightweight proppant in North America, and has a global presence. What some don't realize is that their business is as dependent on natural gas prices and demand as it is on oil, particularly in the US. If we have a cold winter, or if the price of natural gas begins to catch up with oil valuations (what is it traditionally a 7:1 ratio?), natural gas drilling and stimulations will increase, as will Carbo's sales. Currently, they have a plant lying idle, however if sales volume increase, they have the capacity in place to meet that demand and blow the doors off currently deflated sales expectations.

I do not own CRR, however I plan to take my first third if/when it drops below $39 again.

Undervalued

Based on the oil and gas business.

Deep oil drilling.

What a hidden gem. A pure play in the area of ceramic proppants to enhance production of existing natural gas and oil wells. With less than 25 million shares outstanding, and with the majority of the shareholders being institutional, this stock is poised to triple in value very easily. Stock splits, upon stock splits. The potential is incredible.

5 Star/Small cap/Pays dividend

Five Star Caps Stock down 20%

sector

I have just completed my first round of due diligence and dropping free cash flow yield... Check out my value scorecard at:
http://etstockideas.blogspot.com/2007/01/stockpickr-spotlight-portfolio-review.html

Currently selling at a big discount to its intrinsic value in a steady industry

Trouble with Russian contractor is behind them. Uncertainty of new plant start up and loss of patent protection is depressing the stock price. Good buy at this level.

pure and simply i think this stock has been beated to a pulp and i think value players will be picking this one up

Company lacks new products and patents about to expire on existing ones.

CRR is a leader in its market, as well as fracture diagnostic software. It is debt free and pays a dividend. On the down side are the cost over runs with its new plant in Russia. But these problems should wind out in the near future, and the price is nearly half its year high at present. With its new plant up and running, this stock should start picking up.