EnerNOC, Inc. (NASDAQ:ENOC)

CAPS Rating: 4 out of 5

The Company is a developer and provider of clean and intelligent, power solutions.

Recs

11
Player Avatar AC9999 (< 20) Submitted: 2/4/2011 12:12:20 PM : Underperform Start Price: $24.15 ENOC Score: +77.02

Several material negatives for ENOC.1. PJM today issued a ruling strongly condemming one of ENOC's major business practices. This is an immediate several 100MW hit for them in PJM. ENOC will no doubt litigate this at FERC, but they're going to have to decide shortly if they want to either contract their PJM business by 25-50% or risk enforcement action.Link: http://www.pjm.com/~/media/about-pjm/newsroom/2011-releases/20110204-pjm-imm-joint-statement-on-dr-double-counting.ashx2. Buzz is that ENOC failed to respond during yesterday's ERCOT emergency. Probably not financially material, but still some headline risk.3. Long-term, they're a business built on getting high margins from their demand response customers. When they had first-mover advantage, this was possible, but this is an increasingly competitive field, and they won't be able to maintain this. Right now, these guys are Tiffany while their competitors are building Wal-Marts.

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Member Avatar jimmy4040 (23.86) Submitted: 2/11/2011 9:47:38 PM
Recs: 0

There COO had to resign. The bottom line is this company is dead in the water for the foreseeable future. Disturbing that nobody from RB has blogged yet about the problem. Tax loss time, get out now!

Member Avatar OneTwoPunch (50.55) Submitted: 2/16/2011 1:53:21 PM
Recs: 0

From: UPDATE 2-EnerNOC says broke no rules, shares slide again

"Says in full compliance with PJM rules."

"The double counting issue is not banned under current PJM rules, although the transmission group has said it planned to change the regulation in May."

Looks to me like they were doing it, it's just not against the rules... yet.

http://www.reuters.com/article/2011/02/1...

I think the time to buy is after ER.

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