NWPX: Reports Largest Energy Product Order of $10.6M
Submitted By Knobias ClipReport
Friday’s session saw a gloomy picture beginning to be painted depicting a deteriorating market with another possible large down day in the near future. Oil was on the rise at $142, the VIX was moving higher at $24.46 with plenty of room to run, all of the Dow names were below their 50 day moving average and recently confirmed Hindenburg Omens have been spotted.
Noted Art Cashin, director of Floor Operations at UBS on the daily CNBC interview, “We may be looking at what they call the Thursday syndrome which goes as follows: Selling on high volume on Thursday, followed by mediocre trading on Friday, very heavy selling on Monday followed by capitulation on Tuesday, with a reversal in the afternoon.”
“It feels to me that we’re within days of a bottom,” said Cashin. “All 30 Dow stocks are below their 50-day moving average, the S&P has broken through the low end of its range and a large percentage of Nasdaq stocks have recently made new lows. All of those things are usually followed by capitulation within days.”
With the end of the quarter on Monday and many managers window dressing, locking in profits, and holding money on the sidelines for the opening of the third quarter, the market seems to be in an environment for a perfect storm.
With all the doom and gloom circulating the desks, it’s almost impossible to feel positive about current investments unless they’re in the energy, agriculture, or gold areas. But another sector may also be able to feed off the demand for these.
Northwest Pipe Company (NWPX) manufactures welded steel pipe and other products in two business groups. Its Water Transmission Group is the leading supplier of large diameter, high-pressure steel pipe products that are used primarily for water infrastructure in North America. Its Tubular Products Group manufactures smaller diameter steel pipe for a wide range of construction, agricultural, energy, industrial, and mechanical applications. The Company is headquartered in Vancouver, Washington and has ten manufacturing facilities across the United States and Mexico.
On Friday, the Company announced its single largest order for its energy products. The received a $10.6 million order from a Houston-based distributor focused on serving the oil and gas industry. Approximately two thirds of the order will be put into use as gas gathering pipe in domestic gas fields. The final third will be exported to Ghana, where it will be used in a tank storage farm.
With commodities and agriculture being the bread and butter of many money managers, attempting to find names associated with its growth is certainly a smart way to attack this market. Investors would be wise to watch.
