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Zacks' Bear Of The Day: U.S. Silica Holdings

We have been laser-focused on the oil industry for many of the recent 'bear of the day' articles, but now it is time to take a look at some of the market segments which have been negatively impacted by oil's slide outside of the energy industry. One often-overlooked segment, but one that has been extremely profitable in recent years, is undoubtedly companies which produce sand and silica for use as proppants in fracking.

This sand is a key part of the fracking process as it helps to force oil or gas out of the ground, allowing producers to extract more hydrocarbons from a particular site. And as fracking became more and more in demand, so did these proppants, sending shares of companies specializing in this market sharply higher.

However, with the crash in oil prices, demand for these types of products has dried up, leading to a crash in many… Read More …