Energy Recovery (NASDAQ:ERII)

CAPS Rating: 2 out of 5

Energy Recovery designs, develops, manufactures, and sells energy recovery devices for seawater reverse osmosis desalination.

Recs

1
Player Avatar AaronRogers (94.15) Submitted: 12/3/2012 9:41:44 PM : Underperform Start Price: $3.26 ERII Score: +1.32

Consistantly disappoints when it comes to earnings. The cash to debt ratio is the only bright spot but that changes as the negative cash flow continues and losses expected for years to come. Enterprise value is more than market cap implying over valued. When analysts expect losses and they consistantly over expect earnings heart break follows. Buy out not going to happen so the recent run up is over blown. Reversing to the 200 and 50 means technically no good as well. Maybe after a decline of 20% I will reevaluate my thesis.

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