Long
Eco-Stim Energy Solutions Nearing An End to 6 Mo Downward Wedge
Eco-Stim Energy Solutions, (ESES) has been in a definite downward wedge that appears to be consolidating toward a bullish trend. Despite going steadily down during that time frame, there's been repeated month long sideways trading ranges that only falter after their repeated earnings disappointments, then another bout of support and resistance. It's not very dramatic, but the ranges seem to be tightening on the way down too.
Most recently, there's been a change of leadership that resulted in a sharp spike and downward correction. The bears may still be getting the better, but with the next earnings report coming in two weeks, there might be better news to push the stock along the bullish trend.
ESES is definitely trading at a great bargain of $.18 compared to DCF value of a $1.61, hard to ignore that. Also, their annual earnings growth is expected to top 80%, more than double the energy services sector and triple the market as a whole. They've also managed to pay down their debt over the past year while maintaining a solid net worth comparatively. The fundamentals look pretty good. The earnings report, combined with a lagging energy sector has been their problem over the past year, I believe.
Considering the latest management change news, and possible improved earnings, we might see this stock execute a cup and handle formation and start to trend upward. Might be worth throwing a few sheckles at, I mean a 1000 shares for $180 might give some well needed wound licking we all might need over the next few months.
Most recently, there's been a change of leadership that resulted in a sharp spike and downward correction. The bears may still be getting the better, but with the next earnings report coming in two weeks, there might be better news to push the stock along the bullish trend.
ESES is definitely trading at a great bargain of $.18 compared to DCF value of a $1.61, hard to ignore that. Also, their annual earnings growth is expected to top 80%, more than double the energy services sector and triple the market as a whole. They've also managed to pay down their debt over the past year while maintaining a solid net worth comparatively. The fundamentals look pretty good. The earnings report, combined with a lagging energy sector has been their problem over the past year, I believe.
Considering the latest management change news, and possible improved earnings, we might see this stock execute a cup and handle formation and start to trend upward. Might be worth throwing a few sheckles at, I mean a 1000 shares for $180 might give some well needed wound licking we all might need over the next few months.
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