SDPI Can See A Tepid Period
Superior Drilling Products (SDPI) provides drilling and completion tool technology. Its near-term result can be negatively affected due to slower-than-expected sales growth and higher depreciation expense on the Middle East tool deployment. Its cash flow is not robust. I do not expect returns from the stock price to be lucrative in the short term.
SDPI sells new drill bit and horizontal drill string enhancement tools and refurbishes drill bits for the oilfield equipment & service (or OFS) providers. Despite the volatility in the crude oil price, steady