Hi-Crush Partners LP is the only remaining IPO schduled until probably mid-to-late September. Now that the waters have been tested, is Hi-Crush hitting the market at the right time? Of last week's IPOs, 3 out of 4 either stayed neutral or saw gains at the closing bell.
The Houston-based company,however, is worlds different from the companies that have recently hit the market. Unlike Bloomin' Brands [NASDAQ: BLMN] and Manchester United [NYSE: MANU], Hi-Crush produces a product that fuels the American economy. Literally. The company manufactures monocrystalline sand, which is used to help recover oil and gas during the fracking process. Thus far, their earnings have been spectacular and the demand for this premium sand is high. While fracking may not be seen as cost-evasive, this complex process is helping the US move towards self-suffiecny in oil and gas.
Many people think that the gradual shift to clean-energy may be a problem for a company that foc But what these people fail to realize is that in the next 15-20 years, oil and gas consumption is likely to rise in the United States.
Shares of Hi-Crush are likely to begin trading between $19 - $21 at a volume of 11.3MM. While you should avoid a stock at the IPO, are any of you monkeys long Hi-Crush?
