The picture to the left is Jerry Dumas, Sr. He is the CEO of Flotek Industries and he gave one hell of a Q2 conference call today. He fielded some pretty tough questions from some pissed off investors and handled every one with class and honesty. He even got a little indignant about the market cap decline his company has endured since the Q1 conference call. His commitment to his company's share holders was not only demonstrated when he pulled the plug on a recent acquisition, but was also quite clear throughout the call.
I think Mr. Dumas is one of the reasons why I was drawn to Flotek in the first place. I'm a CANSLIM investor and learned about FTK earlier this year through the CANSLIM Select stock screen at Investors.com. I made a mistake by not waiting for a proper buy point, but I can tell you this, I would have never held on to this stock this long if I didn't have absolute faith in Jerry Dumas' leadership and integrity.
Here's to you and your health Jerry.
Here are some call highlights
- Earnings guidance is still 1.35 to 1.45 EPS for the year. This means that earnings for Q3 and Q4 will be double that of Q1 and Q2.
- Sales for Q2 were 22 million. Up 78% from last year. Half of that was organic growth.
- Operating income was 30.7 million. Up 41%.
- Cash flow was 3.9 million compared to 2.4 million for last year and 2.7 million for last quarter.
- Revenue guidance has been revised from 79 million to 90 to 95 million.
Listen to the call and buy Flotek at these extremely undervalued prices!