With no concrete info coming out of this company, I've lost track of when it's going to die.
Sentiment: Strong Sell
I'm long ESI at $8.12 but this is a strange upgrade.
1) Wells Fargo already was already positive on ESI with a substantial upside target.
2) Assets sales are restricted by the banks. ESI is securing its letters of credit and other obligations with its assets. They can't be sold anytime soon.
3) Even if ESI wanted to sell assets, it wouldn't increase its book value. They would just trade assets for cash.
4) With $200 million in cash, ESI already has enough cash for all its corporate funding.
5) The CFPB lawsuit may get thrown out. That's what I expect. In any case, the lawsuit won't be settled for a long time and if there is a settlement, the settlement shouldn't be too onerous. Maybe $20 to $30 million tops.
Anybody see anything I don't?
Sentiment: Strong Buy
"Over the past several weeks, more than 20K oil workers have lost their jobs as companies pare their workforces to deal with the drop in oil prices. More than 700 oil industry jobs are now being terminated in Texas, following recent lay off announcements. GE (NYSE:GE) is planning to cut 45% of staff at its Buck Creek plant, SandRidge Energy's (NYSE:SD) subsidiary Lariat Services is looking to slash jobs in the Permian Basin, and Trican Well Service (OTCPK:TOLWF) is shutting down its operation in Longview, Texas."
"Jack Dalrymple, governor of North Dakota, told CNBC's "Power Lunch" on Thursday that oil production has been dramatically affected by oil's price plummet. "About three months ago, the number of rigs in North Dakota was 195, today the number of rigs is 158," Dalrymple said. "That's the lowest number of rigs since 2010."
Make you wonder why the other 80% are still pumping and when they'll quit, too.
"President Obama will unveil a new proposal to make the first two years of community college free for students during an event Friday in Tennessee previewing his State of the Union address."
If he was smart, he'd have signed with a clause guaranteeing him a year's salary if NES goes bankrupt. With WTI heading into the 40s, he may be able to get a year's salary and only have to work a month or two! The key is "if he was smart". He joined NES as it's about to collapse so you have to wonder...