Thank you for your points. I have again a small short position since late Friday and there would be some concern. I still think it's meandering down to the high 4's at least, hoping to make one more winning trade.
That's the thing with these short trades. They're always knuckle bighters, and I'm getting too old. While it's true that the doctor told me that raising my heartbeat for 20-30 minutes each day is a good thing, not this way!
Can you help me please -- what does the "7% buy last week" mean --
1. Since January 1, over 40 Million shares have traded; most of which more than 30 million, occurred since the Supreme Court ruling on January 26. Since ENOC has a float under 23 million shares, this suggests there are very few long term holders within that float.
2. Prior to the earnings report on Nov 5, 2015, ENOC was trading close to 8/share. The company indicated the disappointing revenues were due to the fact that its Demand Response capability was not deployed during the summer of 2015. In hindsight, this is not particularly surprising since FERC Rule 745 which enabled Demand Response revenue had been overturned by the appellate court.
3. The day the Supreme Court reinstated the FERC rule, ENOC stock traded as high as 7.73, just slightly below the trading range of Nov 4, 2015. This suggests there are some folks who believe ENOC has returned to the value it had prior to the last earnings.
4. Prior to the appellate court overturning the FERC rule in May, 2014, ENOC was trending upward trading above 20/share. Since that ruling it has trended downwards.
5. Oil prices have followed a pattern similar to ENOC's stock.
My conclusions are:
1) ENOC's stock is tightly coupled to the value of demand response.
2) The value of demand response is coupled to the cost of oil.\
3) The market is very uncertain about how to price this information into ENOC's stock.
I don't know how to translate any of this information into a price for ENOC stock but believe Demand Response will be a critical component of the future energy landscape.
Interesting observations. I do want to correct item three, however. The DC Court ruling never had an impact on ENOC. In the Q3 call ENOC reported DR was not dispatched at all in PJM that summer. Oil is driving most everything, for now. Things will change, and ENOC is a long term hold for those able to see the role DR, EIS, and smart grid tech will play in the future.
So I've been following the Top Market Gainers Newsletter and have made some nice returns. Just check out these past trade alerts: IPDN (Professional Diversity Network, Inc.) $0.58 to $1.00 72% Gains, URRE (Uranium Resources, Inc.)$0.35 to $0.74 110% Gains, QKLS (QKL Stores Inc.) $0.97 to $2.10 116% Gains, SHIP (Seanergy Maritime Holdings Corp.) $0.56 to $1.44 157% Gains They have a new pick coming tomorrow. Type "top market gainers" on your yahoo search or search for "top market gainers" dot com, and Signup now!
What makes you sure the DC Court ruling was not the reason PJM did not dispatch DR?
It seems (to me) that FERC rule 745 governed the terms under which PJM dispatched DR without that rule in place, it is not clear that PJM had the authority to dispatch DR.
As you can see from previous ENOC stock progress, stock was hyped up by monday morning after the U.S. Supreme Court upheld a federal rule that the company had supported.
Fundamental analysis shows negative :
QRTLY REVENUE GROWH
6 red flags for stock being up from 3$ to 7$. RSI indicator showing 55 (NEAR 60 OVERBOUGHT LEVEL ).
RSI Level is almost showing 14day overbought level leading to idea for shorting today.
To me, it seems dangerous to short this stock since it has such a volatile upside. That said, its volatility makes for lots of opportunities to profit. What price would you short at?
Well.. My opinion is IT DEPENDS.
If u want to be super careful you can short on 5.39 (BREAKING SUPPORT), in my opinion this stock had to do lower high and lower lows like past 3 days, but today's press releases made a 5% spike which i dont like. Anyway this stock play is almost over. Prefer looking for other big P&D stocks.
Or maybe it will be next pump and dumb or just a big crash due to earnings (i think they release earnings this month)
Thanks for the response too many people post without well thought through positions. Your suggestion of caution is well taken. From a trading perspective, it appears that ENOC has corrected for the dramatic run up after the Supreme Court decision and set a new bottom of its range at around 4.82. I expect the next move to be upward to define the upper end of its trading range. If that upper end is anywhere above 7.73, it would be very bullish for the stock which would surprise me. I expect it to range between 7.50 and 5.00 at least until earnings.
Are you a miserable trader? Change it around by joining ULTIMATE STOCK ALERTS (google em) today! They only alert Nasdaq and nyse stocks with nice charts and good catalysts. You wont be sorry if you join.
ULTIMATE STOCK ALERTS (search them) is the edge that you need in this #$%$ market. Trust me, I?m a random internet user?Sign up and watch, you will see.
Want in on these small cap plays before they take off? Don’t wait for another day. Sign up to
ULTIMATE STOCK ALERTS (google em) and start getting the inside scoop in these small caps before
they take off.