yes ... if a small growth company doesn't have at least a 100 p/e , and also a pile of debt , then i just move
on ... p/e's , for a stock like HEK are red herrings .. completely worthless ... there are other metrics and also
anecdotal metrics to pay attention to ....
It should be known that ex_gs_guy should be called current_wedbush_guy....meaning zero credibility. His "analysis" is one sided to meet his hidden agenda.
The current PE ratio is not a good metric. Look at the forward PE....there is explosive growth happening within this industry, and we are in its infancy. Growth=increased revenues=earnings growth
"no barriers to entry for competition" ? He's right....all you need is hundreds of millions of dollars, three thousand employees, and an inside track into the oil and gas industry network. Like opening a lemonade stand.
Hek just health insur for the 3000 is 4m+ the insur for the trucks a few more mil - plus workers comp at 3-5% based on 50k average pay (low) another 5-7mil and maybe 1.5-3% of gross for Business insur
Real cheap and 2yrs of operating cost min in the bank so double the #s to start.
Why you think there are so few big players and most NG companies don’t do it in house or are looking to get out JMHO
# are based on facts for this type of business they maybe slightly lower but I doubt it
Yes, the stock has become overvalued and earnings estimates keep coming down on top of that.
Look at the 2013 estimates, they have been cut again and again, now down to .11 and I think that is being generous. If you believe that number, you are paying 39 times earnings for a company that has never made a penny.
Be very careful with this, IMO, the next earnings announcement is likely to be very bad and the stock could get whacked severely. Alternatively, the stock has run up on a lot of penny stock hype, it is shaping up to be a potentially excellent short given almost no barriers to entry for competition and a lot of very young, unsophisticated holders of this stock. Just look at the charts to see how volatile it is, you can lose 25% in the blink of an eye.
Sentiment: Strong Sell
it's NOT AT ALL about earnings , but the future prospect for earnings .....
at one time , Henry Ford stood on a street corner in NYC selling his stock for $1 per share ... Ford was
not making much money at the time and the "horseless carriage " was not seen as much more
than a rich man's toy .. guess what happened ????
Same scenario for nearly every other company that many people have held dear .....
why not try bashing stock on Facebook .. you'll probably find lots of friends there ..... g
EX the statement "excellent short given almost no barriers to entry for competition"
And you have been in the environmental business how long as hek is not a cheap start up. One-need trucks 100s, water plant, infrastructure, housing, trained people, safety OSHA and EPA compliance officers on site. If you want to be competitive and of course much more. You talk like hek is Groupon LOL very wrong minded. Hek just compliance is a barrier.
Why do you think every time they find dumping in rivers and streams it’s a small outfit
When companies contract a small operator the EPA visits are ramped up.
The Cost to get rid of the water using an outside recycling plant exponentially increases the operator’s costs.
The epa will hold the company that retained these small outfits responsible when they cant clean up the streams because they cant afford it who do you think they will go after for contracting a mom and pop operator.
Yes hek is volatile but that can also work for longs and one can make or lose your 25%
ARE YOU A PAID BASHER?
So we get it that you are a penny stock gambling loser but this is not pinksheets. A trader or pumpers can not affect a stock price like Hek. Thats why your such a joke because you believe posts on yahoo can affect price. If a retail investor on forum could affect it a tick or two ...it would be maybe seconds in time as major market nabob and large forces take over and prices move depending on the colective mindset of the players involved. Collectively it was a strong institutions and HF shorting HEK. Now the collective trend is more Bullish on Hek. You Ex dont get it and you talk about penney stock pumpers in a non pinksheet company and its just plan stupid.
Sentiment: Strong Buy
Forward PE is 22.37....which is minimal for a company doubling revenues. The 250 pe is looking backward at a company which no longer exists. 250 PE = the sinner on the sidewalk outside the church, 22.37 PE is the " born again" and ironically for those who stick around they'll get to watch it when it "walks on water"......there's my take on pe's. LSP
In a word no....The P/E is not a very good metric in which to measure Heckmann at this time. Look at the revenue growth. This company is just now benefiting from an industry described as a "boon" or "renaissance". This is a good opportunity