I sold mine few days ago and am glad I did.My concerns are no margin improvement and company is burning through too much cash to acquire customers.Deutsche Bank just started the coverage on Feb 16th with a price target of 26 bucks and a Hold rating. I am looking at an entry point around 15 to 16. I am concerned about cash burn etc. Wish all of you all the best.Chart is looking very sick and tired
The expense base was always the problem -- from just a few moments after the IPO, driving post-offering dip. They needed much more infrastructure to achieve the revenue targets than originally planned. This is why that "middle layer of management" pointed out here a few posts ago, is a negative, not a positive. In organizations where the cost structure isn't feared bloated, this would be perceived as positive. Here, now for Enoc, headcount increases talk directly to the bloated costs and cash burn, I agree.
I think you'll have a long, long time to wait until 15/16, I certainly hope so since at this moment I'm long somewhat over 27!!!!!
Not a great way to start the morning, but your post is the right message, it is what is is. More reason why in 2010, the buy and hold strategy is no longer relevant, especially with a high beta stock like this that has just dropped 20+ percent and is still tenuous.
Just hit $27.21 - I am not happy about this. I do think you will be fine w/ your SLW. I just wish I could stop making mistakes. If you tried to tell me ENOC would be here a week ago I would have thought you were nuts.
That's always the case (not believing it would have been here). That's my point, how we have to be cautious about trading ranges that could move up or down a few levels -- in a heartbeat with companies like enoc and slw.
I bought more ENOC at 27.22 (went off my original plan). I'm average now 27.55 and I feel good about making out OK on this trade short term. I don't konw if ENOC will see the monster pops it has in the past -- some of the luster is off and the expense base question remains a nagging one. But it still looks very strong to me, and it's got a track record like others have said -- it does its drop, and then climbs fast and hard on significant news/over time. I hope that remains intact as well, but I'm short term trading in and out -- and protecting my downside carefully, becuase yeah, I've been hurt too on occasion and it sucks.
I dunno, I got a feeling it's not too far down to the short term bottom from wher we are now. It's slw that's killing me -- now long at $15.12 with a pretty sizable position and scared to leave the dam house.
If we collapse to 26.70, I'll buy an equal amount to average at 27.20 and keep buying equal lots each dollar down. Dangerous to do too many buys, too much leverage in the face of an unexpected total collapse, but I just don't see it -- a good bet at this point although I keep a close eye.