Praesidium Investment has a 5.2% stake in Flotek. Flotek is a smallish - billion dollar oil and gas company. It develops oilfield services and equipment from the oil, gas and mining industries.
Praesidium believes there’s a significant growth opportunity in Flotek’s Complex Nanofluid (CnF) suit of custom chemistry formulations. The key is to get the market to recognize this. The key to the CnF growth is FracMax (optimization analytical software). The thesis is to get get that the market to recognize the value of FracMax - the logical option is to organize a separate software business within Flotek
The full letter is here.
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