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Actionable news in SLCA: U.S. SILICA HOLDINGS Inc,

Don't Buy Fairmount Santrol

Summary

Fairmount Santrol preannounced weak earnings for Q2.

The business isn't strong because of a declining rig count caused by low oil prices.

Oil prices may decline as Chinese demand lowers after their strategic reserve reaches its capacity.

Fairmount Santrol (NYSE:FMSA) stock has had a volatile existence because it did its IPO at the very end of the proppant cycle. It could have raised money a bit earlier to capture the peak of the market, but very few saw the decline in oil coming. The proppant gold rush was part of the fracking run up of the 2010s. Silica sand has always been a material which had industrial purposes, specifically being used to make glass. Fairmount...


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