BUY ENERGY RECOVERY INC (ERII) Stock Pick Analysis by Fliujniligui on People & Picks

S&P 500: 1,340.35 Change: -0.84%

P&P Score: 2.54 | Points: -69.40 | Accuracy: 54.76 | Average Pick Score: 10.40 Annual Return: N/A

Commentary

BUY: ENERGY RECOVERY INC (ERII) Rating: 3

Start Price:	$5.65
Points:	-75.03
Created:	09/10/2009

This is a good company, no debt and an increasingly important product. They make the device that allow to recover a part of energy used in reverse osmosis desalination of sea water to provide water in dry zones such as Australia. Their stock was beaten a lot. While I usually prefer to buy things when tangible equity is inferior to market cap, I am ready to put the premium dollars on the table. I did so in my real portfolio 2 days ago and forgot to come here to make the pick. Now I make the pick 10% more expensive. 10% is nothing on a potential multibagger...

1 Comment(s):

Author

Fliujniligui Date

Date

2011-05-21 19:26:13

I failed to follow my picks and I do not have this stock for a while in my real portfolio. I got out in real life when I realized that no matter how nice what they do is and how cool it looks and how useful it is, market cap was in excess of equity and profitability was consistently null. This company is financially sound and is poised to stay in business and keep serving customers and employ people, just as like UNICEF. The problem is that UNICEF performing as well as ERII for investors is abnormal, investing in a company is made to eventually have a profit and ERII shows for a long time that they consistently make no profit. When I put money in UNICEF it is a ''donation'', and when I put cash in ERII, it was also a donation, I could recover the donation but no profit no cash flow no dividend. I got out without a loss.

In this portfolio, I incur a virtual loss and I think that it is a bit late to sell, it is better to let it linger there until someone crazy drives the price back up and then I will gladly allow someone to virtually buy high with the hope to sell higher.

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