I have owned this stock for years and years and am way underwater on it. Great area to be in but not if you are losers and it appears that ERII is one great loser. I don't think they have a clue what they are doing or how to get there.
ERII is doing everything right. As long as their sales stay "reasonable" and the economy doesn't completely crater, they are getting very high margins, since they now have all of the ceramics expertise and manufacturing in house. For 2 or 3 years now, they have methodically worked towards new products in the oil and gas industry and have finally announced these products. Not only is the desalination market expanding, but the oil and gas markets for energy recovery are huge.
ERII also has enough cash to weather any downturns. Not many companies with high margins, strong market share, strong cash position and expanding markets. I only wish I had loaded up when they were down in the twos a little while ago.
Company is losing money, no insider buying, only selling. Yet the stock price has doubled in less than a year. Is a buyout coming by a big corporation? They have a privately held competitor who supposedly has better technology for reverse osmosis. Hmmmm.