ECN Capital Corp T.ECN

ECN is slowly finding a bottom

[toppgunn]

The recent correction in ECN is good in my opinion.  Recent upward climb over the last year has exceeded most peoples expectations.  It is beneficial for a company to show some downside as this builds a more solid base for the next run.  ECN has only basically corrected less than 2 dollars from the high and very minor in the whole scheme of things.  The analysts outlooks appear to be solid going forward.  Even though ECN sold off a business division and downside seems related but ECN was due for bit of a haircut over the last year as never occured.  Definitely a strong hold going forward.

[Blueswin]

After paying the $7.50 Div. What do you think a reasonable price would be for the other two companies? With the overall price being $9.95 today it is only valuing them at $2.45 per share.

[TimeScape]

If it trades at roughly the sales multiple the company was trading at prior to the sale, it would be around $6.00 - $6.50 a share.  At the multiple the one division was sold for, it would be double that, but of course the sale must have been to a highly motivated buyer, and that is not reasonable for the public share price.  Given the very bullish comments by the CEO regarding the growth

[pierrelebel]

TimeScape wrote: "...Given the very bullish comments by the CEO regarding the growth of the 2 remaining divisions,..." How much credibility to you give the CEO? How many shares has he sold in the last 6 months?  12 months? I am a shareholder but always concerned when a CEO is the largest insider seller of shares in my company.  What does he know that I do not know?

[TimeScape]

What a weak argument.  Of course there is going to be some insider selling when a stock has gone up as much as ECN has over the last couple of years.  Insiders still own about 6% of the company's stock. Besides, the growth in the remaining divisions has been excellent - it's not like Hudson is saying something that contradicts the facts.  The remaining divisions grew 70% and

[pierrelebel]

TimeScape wrote "Of course there is going to be some insider selling when a stock has gone up as much as ECN has over the last couple of years." Check the facts.  The CEO sold (net) 850,000 shares between March and May this year when the shares were trading at a relatively low $8 or so - well before they jumped to $11+.  Steve Hudson is the only insider to have sold shares

[TimeScape]

$8 is not "relatively low".  ECN was under $3 in early 2020, and for most of 2019 was roughly $4. In 2017 and 2018 it was in the mid $3's.  Profit taking is normal  for a stock that goes up so much.

[CowboyJim]

Someone/Co has finally done the math.