ENE showed up on my bargain hunting radar today...
Did quick research on F/S, news, and message board.
It seems worths following this stock for a while.
This is what I gather so far, if you find it differently please post your thought.
1. It seems ENE is a solid company with a NOT so solid management team.
2. With a bad investment, ENE could lose 1 to 2 billion. If this is the only bad news, then stock price at around $10 seem to be a bargain price.
3. ENE has chance of belly-up? Not that much at this point. I would say less than 5%.
4. Will ENE's income be less in coming few qtrs? Probably, at least ENE will have to pay higher interest. (Fortunately, interest rate is rock bottom now)
5. Is there more bad news to come? That I don't know, but we should expect more bad news than good news at this point.
6. Forget intangible asset, but net tangible asset is about $10/shr. One positive side: there are few companies who are very interested in taking over this company, so start picking up at $10 seems to be worth while bet.
7. Main concern is,, can ENE able to service their debts in timely manner.... with these bad news and down grade, they may have hard time financing short term and long term debts...
Would appreciate if anyone can comment on these points,
TIA |
