Anne, your reasoning is certainly logical, but you are missing one very big key to investing. Stock prices reflect "potential" future growth, not current financials. Based solely on a $20 stock price and 40 million shares outstanding, Echelon would need to have $800,000,000 in shareholder equity to justify the price. When Echelon reaches that figure, you don't think you are going to get this for $20, do you? Of course this is a speculative investment. So was Yahoo in 1996 when I was going to buy 1000 shares for $18. I got sidetracked by a company whos name I can't even remember anymore. I would be a multimillionaire today had I just pushed the buy button. If you want solid 10% returns, invest in coke or Microsoft. If you research the product and service that Echelon has, you will most likely realize the huge potential. Potential doesn't equal success, and that is why it is speculative. So, you have to decide if you can afford to speculate and sleep at night, or are you more comfortable with the 10% return. Do what's right for you, but please don't accuse stockholders of being uninformed and lacking the ability to understand financial statements. I can assure you, I am at least as proficient as you are when it comes to reading a filing.
Thank you for your post. Finally a logical answer to my concerns. You certainly seem to understand what you are getting into. I was not referring to people like you when I alluded to some being uninformed. I was referring to some of the people above who did not know very basic facts about the company. (Read the posts above).
This company is all about the future, and unfortunately for many, that future has been far to long in coming.
You sound a bit like my wife. She feels a bird in the hand is worth about three in the bush. Extremely uncertain about the stock market. But this particular stock has been exceptionally good to us on two occasions. In 2000 and a week ago. The difference being this time, I acceded to her wishes and kept the 200% gain in cash.
Some of us have visited the company when it was in Palo Alto and now in San Jose. We are extremely comfortable with the personnel. The technology is first-rate, although not cheap, and deserves to succeed.
Monday should be a good day to buy. It often slumps the day after options expiration, although the discount rate change Friday sure threw a new card on the table.
How did you discover Echelon? It is not exactly a household word. Except for some of the households represented here.