Energy Recovery (ERII)

Clearly essential future technology.

Water - salt = yum!

Thanks to Jamasony2 for this IPO pick.

Kind of a crap shoot here. Water going to be an issue with 8 billion people. Could soar I suppose. Going to stick my big toe in on this one.

The Company is engaged in the design, development, manufacture and sale of energy recovery devices for sea water reverse osmosis desalination worldwide.

FINANCIAL RATIOS

Company Industry
Valuation Ratios
P/E Ratio (TTM) 35.60 24.00
P/E High - Last 5 Yrs N.A. 39.70
P/E Low - Last 5 Yrs N.A. 14.50
Beta 0.00 1.35
Price to Sales (TTM) 6.09 1.31
Price to Book (MRQ) 3.10 4.50
Price to Tangible Book (MRQ) 3.12 7.06
Price to Cash Flow (TTM) 33.80 15.50
Price to Free Cash Flow (TTM) 61.50 87.60
Dividends
Dividend Yield (%) 0.00 1.00
Dividend Yield - 5 Yr Avg (%) N.A. 0.70
Dividend 5 Yr Growth Rate (%) N.A. 4.56
Payout Ratio (TTM) 0.00 21.00
Sales (MRQ) vs Qtr 1 Yr Ago (%) 38.70 -20.30
Sales (TTM) vs TTM 1 Yr Ago (%) 47.20 15.30
Growth Rates (%)
Sales - 5 Yr Growth Rate (%) N.A. 5.68
EPS (MRQ) vs Qtr 1 Yr Ago (%) 64.10 -34.80
EPS (TTM) vs TTM 1 Yr Ago (%) 64.10 -34.80
EPS - 5 Yr Growth Rate (%) N.A. -6.25
Capital Spending - 5 Yr Growth Rate (%) N.A. 15.39
Financial Strength
Quick Ratio (MRQ) 9.80 1.50
Current Ratio (MRQ) 11.90 2.30
LT Debt to Equity (MRQ) 0.00 0.40
Total Debt to Equity (MRQ) 0.00 0.53
Interest Coverage (TTM) 155.10 11.10
Profitability Ratios (%)
Gross Margin (TTM) 65.40 33.70
Gross Margin - 5 Yr Avg N.A. 33.50
EBITD Margin (TTM) 27.20 11.30
EBITD - 5 Yr Avg 0.00 0.00
Pre-Tax Margin (TTM) 26.30 8.20
Pre-Tax Margin - 5 Yr Avg N.A. 9.10
Management Effectiveness (%)
Net Profit Margin (TTM) 0.17 0.06
Net Profit Margin - 5 Yr Avg N.A. 6.30
Return on Assets (TTM) 7.80 8.20
Return on Assets - 5 Yr Avg N.A. 8.70
Return on Investment (TTM) 8.50 11.90
Return on Investment - 5 Yr Avg N.A. 14.10
Efficiency
Revenue/Employee (TTM) 625,225.00 180,448.00
Net Income/Employee (TTM) 104,157.00 10,616.00
Receivable Turnover (TTM) 3.50 5.60
Inventory Turnover (TTM) 2.30 6.30
Asset Turnover (TTM) 0.70 1.40
Short Interest
Current Month (Mil) 2.98
Previous Month (Mil) 2.89
Short Interest Ratio (Days) 15.50
Management Effectiveness
Return on Equity 8.50
Return on Assets 7.80
Return on Investments 8.50
Profitability
Gross Margin 65.40
EBIT Margin 26.50
Profit Margin 16.70
Recent Price 6.76
52 Week High 13.25
52 Week Low 4.50
Avg. Daily Vol. (Mil) 0.27
Beta (3 year) 0.00
Share Related Items
Mkt Cap (Mil) 339.00
Shares Out (Mil) 50.15
Float (Mil) 41.08
Dividend Information
Yield % 0.00
Annual Dividend 0.00
Payout Ratio 0.00
Financial Strength
Quick Ratio 9.80
Current Ratio 11.90
LT Debt/ Equity 0.00
Total Debt / Equity 0.00
Valuation Ratios
Price Earnings 35.60
Price/Sales 6.09
Price/Book 3.10
Price/Cash Flow 33.80
Per Share Data
Earnings 0.19
Sales 1.11
Book Value 2.18
Cash Flow 0.2

Business is booming and will continue to boom for this technology. Reports TUES. May 7,2009 and will rocket !!!

energy recovery devices for sewater.... the ice caps are melting and fresh water is becomeing more and more unavailable for some around the world.

Osmotic membranes, eh? There's a few good market offerings for them now but this one looks promising enough to wager a little on. Restaurants and hotels offer steady demand for them and they are expanding into the home market in a few areas with pretty filthy water.

Fresh water supplies are dwindling globally. This company has the capability to provide fresh water through desalinization at a cheaper rate than by current means of desalinization. This is a long term buy. Public won't catch on to H2O until the crisis hits. This company is positioned well.

Water is good for you--it is running out....there is water in the ocean--you can't drink it--ERII makes it possible to drink it...seems like a good business.

Future value pick.

the big institution investors will jump on erii at some point in the next year

What brings the economy out of a recession; small caps and technology, more specifically disruptive technology. ERII represents both.

I recently went to the local aquarium and saw a sign that said “Of all the water in the world, less than 5% is drinkable”. This made me think and when I came home today and saw that ERII hit a new low, I saw this as my opportunity to pull the trigger. Now for the reasons behind my actions.

This company started making noise with its IPO a little over a month ago which was positive in an otherwise dull and dead IPO market. Many people were scared because all the insiders sold their stock on the first day, but I read further into the report and saw that this was part of the deal for them being taken public. ERII reported their Q2 results last week, with revenues growing over 240% to $12 million. They reported EPS of $0.01 in the quarter, compared with a net loss of $0.01 a year ago. The company expects revenue of $6.8-$7.2 million with net income of breakeven to $300,000. For the year, they expect revenues of $49-$51 million with EPS of $0.14-$0.15. Directly after reporting these results, the stock dropped, hard falling almost 10%. Since then the stock has lingered around and finally, today reached a new 52 week low (well really 12 week but you get the picture). I think this presents a great buying opportunity for a stock that provides water, the one absolutely necessary item for human life that we are running out of. Analysts started to take notice as well with Citi placing a HOLD rating on the stock with an $11 price target (a current 26% gain) and with CreditSuits putting an OUTPERFORM rating on the stock (a current 37% gain). But why stop there, this stock is long long term. The need for this company is only going to increase over time and just imagine what will happen when they go global. Thinking big picture this technology has the potential to end droughts which will decrease famine and world hunger. I have pulled the trigger as of close today and will forget about this stock and be glad to. If you have ever seen a multibagger in the making, that is this company. Buy 50 or 100 shares and then come back in a few years when we have less water and this company has grown even further and just smile and kiss those stock certificates.

Water, water everywhere but not a drop to drink. Salt water to fresh water- much needed for the future

Water! Have you listened to the news latley droughts everywhere, but our planet it covered with water, salty yes but hey thats what this company does, cheaply, efficently, and highly portable. You'll be sorry if you dont get on this wagon soon. But look at it this way, atleast when you will have a story to tell your grand kids about the big fish that got away!

zzzzzzzzzzzzzzzzz

"water, water everywhere but ne're a drop to drink"......
And then came ERII. Water is more important than oil. It won't be too long before it becomes more valuable. It is plentiful (in the oceans) but it is useless (for drinking). It appears that ERII has the technology that can make salt water potable & can do it cost effectively.

Got some upward momentum - not sure it will last though.

Read spec and numbers look good. Important application to daily needs which will be ever growing as we waste what we need. Both energy and water are necessities, not luxuries, and in times of survival, people tend toward the basics, and away from luxuries.

Eeeh. I don't know much about this one but I like it.