Energy Recovery (NASDAQ:ERII)

Can a random number generator (www.random.org) produce the best 100 stock picks that will beat the market over the years? Let’s find out. :)

My process, for those interested:
I use www.random.org number generator to produce a number between 1 and 7,801. There are 7,801 stocks available to choose on the Motley Fool CAPS Game. Once I get a number, I go to the list, find that stock, and select that stock to outperform for the next five years.

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.

Debt free with proprietary technology used in desalination and the oil & gas industry. GE is one of their major customers on the H2O side.

This is a stock that would sit in the speculative portion of a portfolio. Energy Recovery makes a device that fits into water desalinization plants to reduce the amount of energy required in the process, thereby making it more affordable. Global drinking water shortages are foreseeable in many parts of the world and Energy Recovery could play a significant role in the solution.

cost-effective reverse osmosis technology should pay off as clean water becomes more scarce, but I don't know the timing...

It's time for this stock to shine.

Where are the sales? They can't survive on cash alone.

Mmm...drinking water...

The entire world and here in the U.S. has a current need and increasing demand for palatable water. As cities around the globe spread to the interior, the need for water will become more dire. Look at Nevada and their water issues.

good,inovative and much neede technology

good long term pick, but i'm not a buyer at this price. will go into the low 3's again perhaps lower within the next year a good pick then

next round of speculative outperformers. very risky (except for the few at the end of the list).

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Population growth + need for water means this is a good long term bet.

moderate buy

Beaten down, solid tech, increasing demand

I think this will out perform because of the need for clean water around the world. The scarcity will drive this market with vigor.

long term play on water scarcity

Ge is the largest holder of water resources in the world for a reason. Water will only continue to become more valuable and erii is poised to capitalize on the increasing scarcity of fresh water resources.

Great balance sheet Business plan solid Desalination will become more and more important to world population and this company is poised to take advantage of this opportunity.