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Rate My Stock: Heckmann

Tuesday, 17 Jan 2012 | 6:55 PM ET

In this new feature, CEOs from under-the-radar companies lobby the traders — telling them why their companies are undervalued.

Heckmann Corp. operates water management for the energy development sector. Based in Palm Springs, Calif., the company posted a net profit margin of 5.43 percent for the third quarter of 2011 and EPS of $0.02. Its shares closed down 5.19 percent at $5.84.

“I think there’s a north of 30 percent short interest in it,” trader Guy Adami of Drakon Capital said Tuesday. “If Jim Cramer likes it, it’s worth taking a flyer. I think maybe the stock is bouncing now after this interview. It’s a name you might want to take a look at.”

Rate My Stock: CEO Pitches HEK
A second derivative play on fracking and waste water management, with Richard J. Heckmann, The Heckmann Corp. CEO.

Last month, the host of “Mad Money” interviewed CEO Dick Heckmann.

On “Fast Money,” he sounded positive on regulation.

“Regulation, clearly, is a friend of those who treat water. I think the worst thing that could happen to us would be for the government to say, ‘Look, guys, we don’t care what you do with this nasty water. Just dump it anywhere you want to’ — probably wouldn’t be good for our business,” he said. “But what is good for our business is the fact that the drillers, the producers are very conscious of the risk to this water, and they’re very conscious of their obligation. So they turn over that water to us to either treat, recycle or dispose.”

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NEW SLIDESHOW: The Biggest Momentum Stocks of 2011: Buy or Sell?

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Asked about a being a possible takeover target by a larger company such as Halliburton or Schlumberger, Heckmann said he would “never deny shareholders the opportunity to vote,” but added that day-to-day operations were busy enough.

“Right now, we’ve got our head down because the demand for what we do is enormous. We can’t get enough trucks. We can’t get enough drivers. Disposal is at a premium in many of the shale plays,” he said. “We’ve gone from 30 people to 1,200 people in a year and continue at that pace.”

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Trader disclosure: On Jan. 17, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Adami owns C; Adami owns GS; Adami owns MSFT; Adami owns AGU; Adami owns INTC; Adami owns BTU; Adami owns NUE; Terranova is long V; Terranova is long CSCO; Terranova is long TRLG; Terranova is long JNPR; Terranova is long DECK; Terranova is long NFLX; Terranova is long XOM; Terranova is long SBUX; Terranova is long AXP; Terranova is long EMC; Terranova is long MUB; Terranova is long IBM; Terranova is long UNG April $5 puts;

For Fred Cannon
KBW expects to receive or intends to seek compensation for investment banking services from Bank of America Corp. in the next three months.

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KBW has managed or co-managed a public offering of securities for SunTrust Banks Inc in the past twelve (12) months.

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SunTrust Banks Inc currently is, or was during the 12-month period preceding the date of distribution of this report, a client of KBW.

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For Carter Worth
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For Kevin Milota
J.P. Morgan acted as lead or co-manager in a public offering of equity and/or debt securities for Carnival Corporation within the past 12 months.

J.P. Morgan currently has, or had within the past 12 months, the following company(ies) as clients: Carnival Corporation, Royal Caribbean Cruises.

J.P. Morgan currently has, or had within the past 12 months, the following company(ies) as investment banking clients: Carnival Corporation.

J.P. Morgan currently has, or had within the past 12 months, the following

company(ies) as clients, and the services provided were non-investment-banking, securities-related: Carnival Corporation, Royal Caribbean Cruises.

J.P. Morgan currently has, or had within the past 12 months, the following company(ies) as clients, and the services provided were non-securities-related: Carnival Corporation, Royal Caribbean Cruises.

J.P. Morgan received in the past 12 months compensation for investment banking Carnival Corporation.

J.P. Morgan expects to receive, or intends to seek, compensation for investment banking services in the next three months from Carnival Corporation, Royal Caribbean Cruises.

J.P. Morgan has received compensation in the past 12 months for products or services

other than investment banking from Carnival Corporation, Royal Caribbean Cruises.

For Jim Iuorio
Iuorio is long FXE puts

For Dick Heckmann
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