Is Flotek Industries Inc a Buy?

 

Is Flotek a buy? Well, lets analyze it together as per below:

3 years view on the chart shows that Flotek has been on a downtrend move for a very long time. Time might be ripe for a huge rebound that can send the stock to double or even triple in price.

Moreover, the oil price has been going up from $35 level to more than $85 level now. Those companies  that are in the oil industry are expected to rise in their share prices.

Flotek Industries, Inc. (Flotek) is a diversified global supplier of drilling and production related products and services to the oil and gas industry. Its core focus is oilfield specialty chemicals and logistics, downhole drilling tools and downhole production tools. It operates under three segments: Chemicals and Logistics, Drilling Products and Artificial Lift.

Technically:

However, for the near term look, the chart doesn't look positive. 

1) Stochastic indicator already shown that the blue like has crossed over to below the red line and it is still in the beginning stage.

2) Important indicated MACD shown that the blue line has already touched the red line and is on the process of crossing over. 

When these 2 negative indicators combined, the chances of this stock going down is very high, based on my experience.

3) However, Parabolic reversal does not show a negative signal yet. I have already expected that Parabolic is still showing positive signal because Parabolic signal is usually a late indicator when the trend does reversed. 

I believe for the short term (within these few weeks), this stock will probably consolidate find its support at mid level of Bollinger band which is $3.6.

Fundamentally:

This stock does show some improvement on the quarterly earning.

Q4 2009 = -0.41

Q1 2010 = -0.34

Q2 2010 = -0.12

Q3 2010 = -0.05

Although, it is still in the negative side, however, as you can see from quarter to quarter, it does show tremendous improvement, probably due to the increase in the oil price.

Summary:

For the longer term, this might be a good play, however, for the short term, wait for it to consolidate further before jumping into this stock.