I think they will still have some growing pains before this stock really starts to move. They won't have material sales till next year. Expect more rounds of dilution. I will continue to follow this stock and board. I want to see the new management hit some goals such as approval of CE mark.
We filed a motion to dismiss all claims in the complaint in this case on November 7, 2011. The plaintiff filed an opposition brief in December 2011, and we filed a reply brief in January 2012. The matter was argued to the court on January 25, 2012, and on September 30, 2012, the Court dismissed one of the three claims. On September 4, 2013, the parties in the case presented oral arguments on their respective motions for summary judgment. To date, the court has not ruled on the motions. We continue to believe that our decision to withhold the two performance-based milestone payments was justified, and we intend to defend this case vigorously.
In April 2011, the Company filed a lawsuit entitled Energy Recovery Inc. v. Leif J. Hauge; Isobaric Strategies, Inc.; Tristan Nillo; and James Coyle in Alameda County Superior Court alleging, among other things, misappropriation of the Company's trade secrets. On December 5, 2013, a jury determined that the Company had not proven the alleged misappropriation of trade secrets. The defendants have filed a motion for attorney's fees alleging that the Company brought the trade secrets claim against them in bad faith. The Company believes that, while it was unable to prevail on the misappropriation of trade secrets claim at trial, the facts presented at trial were contrary to the defendants' allegations of bad faith. An unfavorable ruling in this matter could result in a loss ranging from $0 to $0.6 million.
We are a defendant in a lawsuit filed by one of our competitors on October 4, 2013, entitled “Fluid Equipment Development Co., LLC, d/b/a/ FEDCO of Michigan v. Energy Recovery, Inc.” in the U.S. District Court for the Eastern District of Michigan (Southern Division). The complaint alleges, among other things, false advertising under federal and Michigan state statutes based on claims made by us related to certain of our products. Plaintiffs seek injunctive relief and as of yet, unspecified damages, attorney’s fees, and litigation costs. We intend to defend this case vigorously, and believe that we have meritorious defenses against the suit, although we cannot guarantee that we will ultimately prevail. Since the litigation is in its early stages, we are unable to estimate the possible loss, if any, that we may incur as a result of this litigation.
We are a defendant in a claim made by a vendor related to a supply agreement. This lawsuit was filed on December 14, 2011, entitled “Morgan Technical Ceramics Auburn, Inc. v. Energy Recovery, Inc.” in the Alameda County Superior Court of California. In 2008, we entered into a supply agreement with the vendor to manage the cost and availability of key raw materials and components. The agreement was amended in 2010. Under the terms of the amended agreement, we committed to future minimum annual purchases of raw materials and components through 2013. If annual purchase commitments were not met, a penalty of approximately 35% of the remaining open annual minimum purchase requirement could be assessed by the vendor. In June 2011, due to ongoing quality issues, we terminated the agreement on the basis of a material breach by the vendor. On February 19, 2014, the court determined that the plaintiffs had indeed provided the Company with defective materials and components, but that such breach did not reach a level of materiality warranting the termination of the supply agreement. The ultimate resolution of this matter, after the damages phase of the litigation, could result in a loss ranging from $0 to $1.0 million in excess of the amount accrued.
We are a defendant in a claim made by the former shareholders of Pump Engineering, LLC. This lawsuit was filed August 8, 2011, entitled “Roy Radakovich, as representative on behalf of former shareholders of Pump Engineering, LLC v. Energy Recovery, Inc.,” in the U.S. District Court for the Eastern District of Michigan (Southern Division). We acquired Pump Engineering, LLC in December 2009. Under the terms of the purchase agreement, $3.5 million of consideration was contingent upon achievement of certain performance milestones. These performance milestones were tied to: (i) achieving certain minimum product energy efficiency metrics ($1.3 million); (ii) meeting certain product delivery time schedules ($1.2 million);
Rooney kinda scares me at the same time he gets me excited about their potential. What scares me is the vague and secret element. He is holding his cards tight to his chest. Am I to just take his word that they are going to comem out with some sort of new products that will instantly capture market share and make us all millions of dollars. I have invested in stocks that actually tell you what the productr was and it sounds great but the market does not accept it for whatever reason. I guess I just do not know enough about this company and their product to make a decision. I will continue to watch and learn.
After further review I am re-evaluating the projected quarter numbers. I think I was overly ambitious with $20 million. It looks like the high gas prices wont hit till this next quarter. My new numbers are for 12 million in gas sales and crude oil sales around $5 million. $17 million total sales. Loss of approx $3 mill.
But it is huge news in relation to our $42 million market cap. I agree with Buck Wheat. This should be a $3 or $4 stock. We now have an extra $21 million to invest in Oklahoma oil wells. Or maybe we pay off some of the debt. Either way things are looking up. Glad I bought in at $1.25. I cant wait for the earnings report. Should be coming out in the next 5 days or so.
Exerpt from Annual report: We expect to commence an initial soft launch of the full Dario� solution (including the software and the all-in-one blood glucose meter) for iPhones and other iOS devices in Europe by the second quarter of 2014 with the goal of collecting customer feedback to refine our longer-term roll-out strategy
I guess we will find out in approx 1 week. My guess is we will see natural gas sales of $14 million and Crude oil sales around $6 million. That is $20 million in revenue. Now is we just stayed flat for all of 2014 that would be $80 million for the year. That is about break even. But it wont stay flat becaus ethe have invested a bunch of money into the Oklahoma properties. $10 million in just the land and I think they are spending approx $45 million in capital expenditures in 2013. 2014 is the year you will see the returns from those investments. Not bad for a little $35 million dollar cap stock.
Profitzone-Thanks for your very thoughtful response. I agree this product looks like a winner. I am wondering if we will see revenue hit the income statement in the next quarter. I think they have been selling product in approx 4-5 countries now. You have any insight on this?
They will have a great quarter. Look at past earnings and see how the increase gas prices helped. Now that natural gas is over $6 this stock is ready to run.. All the other NG stocks such as Chesepeak and UPL have taken off. This one is so small no one notices it. Once earnings come out people will take notice.
Their refinery is right on the St Clair river and there was a report on CNBC about how it now takes a week to get boats through the river when it use to only take a couple days. Will this affect their earnings. I am not sure. Not sure if they are having any problems at all. Just speculation.
This stock just stinks. I have been following it for about a year. I was disappointed that they arent projecting any meaningful revenue from some of their new products till 2015. I think it will continue lower. Probably hang out around $2 a share for a while. But Sometime in 2014 this baby will be in the $1's. I will keep watching untill either one of 2 things happen. 1. they replace upper management or 2. their new product comes out and we start seeing some traction.
I will continue to watch this stock because I like the field they are in but I will not buy till I see one of the above 2 items happen.. If teh board is not smart enough to see what is written on the walls then I don't want to own this stock even at 1.90 a share.. I am getting tempted but I will remained on the sidelines for now.
So I am guessing you lossed $2700 on your most recent trade. I have never been able to figure out why people use these stop loss. When and if I buy a company like KIOR I will be buying for the long term. I think it is completely impossible to predict this stock short term. Can you explain your logic on using a stop loss?
Salli did you ever check out DAEG. I told you about that stock on Dec 17th at $1 a share. It traded today for $1.37. 37% return Not bad for 20 days....
Still Holding my Camp now at $24. Pangia is still collecting his big salary and the stock has gone no where. Currently trading at $2.21. Yahoo estimates went from them earning .5 a share 90 days ago to them losing .04 a share. i will keep watching to see how their new products roll out. But i woudl say currently would only buy this stock under $2 a share or when Pangia gets fired.