I have a neutral stance on CSI Compressco LP (CCLP). On a positive note, the outlook for natural gas looks bullish, and there is a demand for CCLP's products, as shown by the bookings. Also, gross margin has increased quarter over quarter. However, the substantial leverage worries me. Right now, the company cannot fund the interest expense from its operating income. However, the trend is improving.
Tailwinds
CCLP should be treated as a highly speculative investment. One positive aspect from CCLP is that gross margin has been increasing, with the company posting a record-high compression