Flotek Industries Almost Joins the Other Stocks Under $1 (BBI, RHIE, FTK)

Bargain shoppers are always searching for quality stocks under a buck that aren't just another Penny Stock and Flotek Industries, Inc. (NYSE:FTK) came within 2 cents of hitting $1 even on Friday.  Joining the ranks of PokerTek Inc. (NASDAQ:PTEK) and Blockbuster Inc. (NYSE:BBI) now trading under one dollar.

Flotek (FTK) shares hit $1.00 on Dec 4th and have since managed to get back $1.15 but on Friday they closed at $1.02.  Its been a rough ride for Flotek Industries (NYSE:FTK) shareholders since the company's Q3 Earnings call on Nov 17th.  But the pain started before November, since Oct 16th Flotek shares have lost 57% of their value.

Last month Flotek reported $23.8 million total revenue for Q3 2009, a decrease of 62.1%, compared to $62.8 million for the Q3 2008. Revenue decreased in all of Flotek's operating segments, a result of a decrease in drilling activity since the 2008 cyclical peak, natural gas prices and drilling activity have declined which directly impacting demand for their products.

Revenues for the nine months ending September 30, 2009 decreased to $88.0 million from $166.1 million for the first nine months of 2008. Loss from operations for the third quarter of 2009 totaled $2.5 million, compared to income from operations of $12.2 million in the third quarter of 2008. Flotek is now raising concerns that it will be unable to meet the financial covenants set forth in its Senior Credit Facility. As a result, the Company took a valuation allowance of approximately $16.8 million against its deferred tax assets on the Company's balance sheet. 

Flotek has been killed by traders for the past three months, the company hasn't gone out of business yet and should its stock dip below the $1 level it may be worth a few bucks to gamble on a potential comeback.

Read more about the decline of Blockbuster Inc. and RHIE Entertainment -- Click to Read Stocks Under $1: Blockbuster, RHI Entertainment, PokerTek (BBI, PTEK, RHIE)>>

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