Q: I am wondering if Anaergia is getting past their problems,
I thought this company was finished. They have made a few positive announcements but are they meaningful? What are your thoughts is this worth buying?
I thought this company was finished. They have made a few positive announcements but are they meaningful? What are your thoughts is this worth buying?
5i Research Answer:
ANRG has more than doubled this year. But, it is still losing money with highly negative cash flow as well. But it has new management, is eliminating its share structure, and has won new contracts. We would view all of these moves as very positive. But, it does not quite sway us yet. Revenue still fell by nearly half in the Q2 and there remains financial and execution risk. If it can stabilize its cash flow losses, we would be more interested. Investors like a 'back from the dead' story but we think it remains very risky. Still, the moves are certainly in the right direction.