Anton Oilfield Services Group, about 20 percent owned by Schlumberger Ltd., slumped by a record in Hong Kong trading after CLSA Asia-Pacific Markets cut the stock to sell from buy.
Anton dropped 14 percent to HK$3.49, the biggest decline since shares began trading on Dec. 14, 2007.
Anton, which provides drilling and fracking services for oil and gas wells, more than quadrupled in 2012 in Hong Kong. In July, Schlumberger, the world’s largest oilfield services company, agreed to buy a 20 percent stake for $82 million.
“Simply put, the stock has now run too far, too fast – as such we downgrade it to sell,” Simon Powell and Nelson Wang, Hong Kong-based analysts at CLSA wrote in a note to clients today. “We now struggle to find a suitable valuation approach to justify current price levels and can only conclude that the market is pricing in blue sky from shale gas.”
A receptionist at Anton’s Beijing office said no one was available for comment. The stock has 9 buy ratings and 2 sells, according to data compiled by Bloomberg.