Why Forum Energy Is Poised to Keep Plunging
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Forum Energy Technologies , which provides manufactured technologies to the energy sector, has received a distressing two-star ranking.
With that in mind, let's take a closer look at Forum Energy and see what CAPS investors are saying about the stock right now.
Oil and gas equipment and services
Chairman/CEO C. Christopher Gaut (since 2010)
Trailing-12-Month Return on Equity
$17.9 million / $318.7 million
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 20% of the 15 members who have rated Forum Energy believe the stock will underperform the S&P 500 going forward.
Downward guidance is seldom received well by the market. And the information indicated in the release seems to indicate some core business concerns. The [company] indicated the reduction in the expected range for full year 2012 earnings per diluted share is primarily the result of:
-- Significantly lower fourth quarter 2012 customer spending on capital equipment and consumable products than previously anticipated, especially in the company's Drilling product line.
-- Customer deferrals in accepting delivery of higher margin capital equipment orders from existing backlog.
-- Under absorption of manufacturing costs.
- -Acquisition transaction expenses, severance, weather related inefficiencies, and other transitory costs.
If you want market-topping returns, you need to protect your portfolio from any undue risk. Luckily, we've found another growth play we are incredibly excited about -- excited enough to dub it "The Only Stock You Need to Profit From the NEW Technology Revolution." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.
Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.
The article Why Forum Energy Is Poised to Keep Plunging originally appeared on Fool.com.Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends FMC Technologies and National Oilwell Varco. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.