That's a poor reason if it is true as for instance the Kazakh Caspian pipeline is going to be built regardless of the oil price. Stock market is so irrational for some if not all the times !
This is why i am holding until the ER. I projected we would be be at $1.17 by the time the ER came out, but I may have to revise that based on the rate of decent.
ENG has dropped 70% in 4 months and 37% in the last 3 weeks. In addition, the stock has closed in the red on 15 of the last 16 days. There seems to be no buying interest at all.
Does anyone know why this has happened.
I called the company 6 times yesterday, trying to talk to investor relations or anyone that could answer my questions. I got the run-around as I talked to a couple of people but they did not know anything and those that may know something did not return my calls after repeated requests for a call back were given.
Something negative is happening with this company, but I can't seen to get any information about it. This kind of a drop without any news items is not normal.
another poster (calbizzy) said it looks related to the oil price fall and that seems about as good an explanation as any even though the oil price makes very little if no difference to this company's revenue which is based on oil services not oil barrels but there we are, the irrational markets (i.e dumb Institutions) showing their stupidness again.
another poster (calbizzy) said it looks related to the oil price fall and that seems about as good an explanation as any even though the oil price makes very little if no difference to this company's revenue which is based on oil services not oil barrels but there we are, the irrational markets (i.e dumb Institutions) showing their idiocy again.
I don't believe that is the reason for the drop in price. I have been following the price of oil and shorted both OXY and CVX a couple of months ago and made good profits on them. Nonetheless, I am now long both of those stocks (though looking to get out around here) as they reached levels of support and bounced.
The drop in ENG is much more than that. There is no way that the drop in the price of oil, which has been about 28% in value, will have been the cause of the stock dropping 70% in value over 4 months and 37% in value over the past 3 weeks.
In addition, the price of oil has bounced up but the stock has seen NO BUYING interest whatsoever.
It smells big time of some problems that may be happening to the company. If it smells like a rat, and skulks like a rat, it probably is a rat.
which just goes to prove there was ZERO valid sane reasons for the drastic fall from $4.22 !!!
Book value is around $24m and currently profits are around $7m a year which means that current market cap of $43m will be reached in only 3 years. Seriously, a forward p/e of only 3 ?!!!! If that is not a serious undervaluation I don't know what is !!