FI - Franks International NV

[3259]

Franks International NV (FI:NYSE) is small cap value stock and a leading provider of casing and tubular running services, an important part of the construction of oil and gas wells. I generally put oil & gas stocks in the "too hard" pile; however, I'm been looking to add some exposure there for diversification.

 

On the positive side, FI gives you exposure to rising oil prices, insider ownership > 50%, business arguably has a moat, and the stock appears cheap. Looks like it will hit 52-week low today.

 

My primary concern is how long (if ever?) it takes for deep-water markets to recover.

 

Looks like an interesting idea, but unfortunately, this one is not in my circle of competence.

[DooDiligence]

I've hauled more offshore tubulars than I care to remember.

 

You can't swing a dead cat for hitting a pipe yard in LA.