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Why Shares of Nuverra Environmental Solutions Inc Dropped Today

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Nuverra Environmental Solutions Inc (NYSE: NES  ) fell 15% today after announcing earnings and an asset sale.

So what: For the fourth quarter, Nuverra reported $128.4 million in revenue and a net loss of $134.0 million from continuing operations. That's after pulling out $$26.1 million in revenue from Thermo Fluids,, which was sold to VeroLube for $175 million.  

Now what: The loss of $0.53 per share was even bigger than the $0.35 per share loss that analysts expected and highlights the company's major challenge. Despite growing in size over the last two years, Nuverra has seen financials deteriorate and isn't generating a positive operating profit. It's not expected to this year or next either, which is enough to keep me out of the stock today.

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  • Report this Comment On March 11, 2014, at 6:30 PM, Whitey wrote:

    I bet on Richard Heckman,Dan Quayle,and Lou Holtz- original founder and directors.I bought the concept Heckman presented on Jim Cramer's Mad Money. I have lost over $100,000 so far.( tax selling) I still own some options and common which I kept just in case Motley Fools pumping works out.

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