Mr. Rooney keeps touting a billion dollar market and yet we have no real sales to speak of. He has hired to 6 salespeople to go after this market with no results to date (granted it's early). This is the type of product that needs to be sold to engineering departments so you need salesmen with that kind of access and experience. going to trade shows is necessary to drum up leads but that's not the road to big sales. What ERII really needs is a sales force that is much larger in number that already has access to refinery and engineering construction firms. And it would not hurt if ERII was a part of a much larger company (take your pick here). Mr. Rooney, you need to consider strategic alternatives to give this technology a fighting chance in the market. You have three pilots and 2 of them are in far off lands. Do you mean to tell me that with all we have going in this country and with the payback on these products that you can't even get a few people interested in pilots in this country after having this technology available for at least 5 years? I don't know about you, but that does not seem like a successful way to introduce a new product/technology. Refining/Recovery operations are not that complicated: pumps, pipes, valves, motors, and specialized process equipment such as in the amine loop. There are guys who make a good living selling these products. Does it make sense that your products should be added to their portfolios? I've come to the conclusion over the years that your technology is excellent, but now that you are going after new markets you may have to rethink your sales/distribution strategy. I'm not confident that building out a direct sales force is the way to go here. time will tell....................
This is my view as well. Def should stick your feet in though, wouldn't want to miss the announcement of an O&G contract.
Sentiment: Strong Buy
Astute traders seem to be taking up short positions. Maybe ERII will have a earning shortfall below expectations for the upcoming earnings period. Long term profitability seems to be on track, but it may take several more quarters to show up. Lower prices should provide good accumulation opportunities.
Sentiment: Strong Buy
I might be mistaken but I don't think they said that. I believe they said that they expect the revenue to be skewed again to the back end of the year. Costs are under control much more so than last year. Add in the direct sales force for oil and gas and expenses might go up a bit but I don't recall them mentioning down year over year performance. Moreover, I think that this story is all about oil and gas going forward and not the current desalinization business. That's where my focus is and why I am disappointed that we have not seen any news on this sector. I believe Rooney said that, "They were overwhelmed with commercial requests for proposals in oil and gas". That's a pretty strong statement.
They will be able to give guidance on the CC in May; Whatever held them back last time, should be adressed, interpreted and thus solved!
By management's own admission, shareholders should expect TWO consecutive quarters of year/year UNDER PERFORMANCE in sales and earnings. For an extremely speculative issue, this means PPS under performance for the next six months. Thereafter, you will have to reassess.
The truth is that this company should not be a public company. They should be privately held in some other capacity, perhaps as a division of an equipment supplier or simply as a stand alone private company, or as part of a private equity portfolio. The financial model does not lend itself to the vagaries of short term performance that are the hallmarks of a public company. I don't think that this management team understands this. owning this stock has been a roller coaster ride and I think you have to blame management. management blames short term traders in the stock. I don't think that is fair. Many companies have lumpy seasonal businesses and still manage the Street quite well. when I discuss this company with other investors who know the story, I find that I get push back due to a lack of management credibility. I get tired of defending these guys/gals at ERII. All I can say is that "The foundation of credibility is the truth!" We are all tired of hearing promises that have not been kept.
I too am wondering when they will come through on some of their promises. fool me once.....fool me twice..........? Is there any sense of urgency at this company? Are they just going to let this stock fall off of a cliff again? I wonder what the morale is like among the employees. Wish I was short the stock because It's been easy money but that's not the case. I think the board of directors needs to re-think their support for this ceo and his grandstanding. Anyone else fed up with these guys? YOU ARE A PUBLIC COMPANY - START ACTING LIKE ONE!
He's probably someone who is wondering about your myriad of posts? I think the question is valid...you don't seem to like the way ERII conducts business?
that certainly would make them more attractive but it is not a must. an acquirer with a solid sales force and long term customers in the oil and gas business could easily pay a good premium for ERII and still come out way ahead. The products work and the ROI is huge. They can buy ERII and put these products right into the hands of the salesforce and hit the ground running.