I dont know what Warren Buffet would say where ELON is concerned.
It is true, how do you evaluate a stock thats not profitable yet? $5 or $15?
But I would say this: ELON is basically the same price it has been for a few years, and I dont think there is any denying that. In the last year alone you get Sege, Norway, Holley, Upgrades, beat expectations, etc....The stock would surely have to be higher than this for those reasons. Coupled with the fact the markets higher, and we are closer to fruition (hopefully)
Warren Buffet would argue that the share price is way too high. How do you value the stock of a company that is losing millions of dollars a year? There is no formula for that, so it is worth $9 only because there are enough people who see the "potential". Otherwise it's not even worth $5. But, there is a formula to calculate the value based on an annual profit of $1 a share, which in Echelon's case means about 10 million dollars a quarter in profit. Do you know how little business it is going to take to switch from losing a few million a quarter to making 10 million a quarter? That's why the stock is going to run again like it did those many years ago when the captain must have been out to sea and unable to take his 50 bagger profit.
John: For the most part I do agree.
But the stock is still $1.50 lower than January 1st. And ELON has exhibited run ups in the past. Four years ago, it went from $7 to $30, and two years ago it went from $7 to $15.50. These runs were BEFORE all the things I mentioned in my post.
So yes, I agree, but all in all the share price is just still ridiculously low.
The answer to your question is because they are not a profitable company. The days of fund managers investing in "potential" are over. That bubble burst a long time ago. Fund managers are not going to risk capital, so they would rather wait until Echelon starts giving quarterly guidance that shows not only a profit, but increasing profits quarter over quarter. You think you will get it at $9 when that happens? Little guys and gals like us on this board have no effect on the stock price. But when a major fund manager decides to buy in, those 40 million shares O/S will get gobbled up fast. Someone on here said making a profit is the only thing that will get the stock moving, and that person is right. At some point, the combination of more Duke, Holley, ELO, Norway, Finland, etc will make them profitable. And, once they reach a certain saturation point in the industry, growth will accelerate.
The problem is nothing "busts" ELON open. It just plods along. Beating earnings doesnt do it, Hillary plugging it doesnt do it, Ecos doesnt do it, Norway doesnt do it, upgrades dont do it, Holley Metering doesnt do it, Ron Sege doesnt do it.
And you would have thunk last week, when ELON didnt fall apart during the violent market week, that maybe just maybe we'd FINALLY be making some headway. And yet, nope. It just lays here at $9.
It cant be that all of us who post long on this board are so smart and the rest of the world is that dumb. Why isnt ANYONE catching on yet?
A breakout should be happening with all the recent upgrades but I look for a major breakout in Sept-October time frame once the market stabilizes, all the traders are back from vacation, and another contract or two is announced. We could double by year end but I've said that before...
Yes, I am looking for the breakout.
Didn't happen yesterday or the day before or the month before or the year before.....10 years now and no breakout.
But I am watching and watching and watching.
But all I see is pumping, pumping, pumping.
Where is the profit? Once that happens, maybe just maybe, this pos will head higher.
Oh, I see now. It is a breakout to down side. Down 29 cents now and volume is up. What a great breakout! If this keeps up I will have to buy more. Problem is I don't have enough elon.
What a pos.
Perhaps you ought to sell your stock and move on.... Or better yet why dont you go short against this stock...Please choose not to answer and move on.. I thank you in advance for your anticipated cooperation in this matter...