| The Casual Investor | ||||||||||||
| Investing tips for those who are not yet rich | ||||||||||||
Stock Pick 12/18/2007: EGR
Today's pick is Commerce Energy Group, Inc (EGR). This company is a riskier bet than most of the others I've rated here in the past. The stock was down $0.44 per share today to $1.28 per share, and this company is exactly four years old today. There are some good points to this stock, though. Gross profit has increased significantly from the same time last year. Yesterday's report of quarterly net loss drove the share price down, but the net loss reflects additional expenses taken on by EGR for the purposes of growth. In spite of the negative quarterly earnings, EGR has grown its business significantly, acquiring greater customer bases in Texas and Maryland and hiring 79 new employees (a payroll expansion of about 45% from July 31, 2006, when the company reported 176 employees). Combining reported growth efforts by this company with an average price ratio of 4.87 (from 9.60 P/E and 0.14 P/S), evidence indicates the potential for gain. I believe EGR is undervalued right now due to an excessively negative market reaction. This stock is poised to increase in the coming weeks. 2007-12-18 22:50:48 GMT
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