CRR - Hi-Crush Follow-Up: More Reasons Why Frac Sand Stocks Are Buys
After Hi-Crush Partners (HCLP) idled its dry plant, which plummeted shares of all frac sand players, Covia (CVIA) announced more closures of its own. Investors obviously fear that these moves by management could be the beginning of a trend for the frac sand industry, and they may be right.
However, while the situation for investors who own frac sand companies may be analogous to having teeth pulled at the moment, these moves are necessary in order for the bifurcation process of the frac sand mining industry to occur.
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