The truth behind the hypeNow I have been reading a lot of posts about why the stock should rise but let me provide the facts as to why it will. In 2013 the company earned 12 million dollars divided by 110million shares outstanding which gives the current figures of $0.11 a share and a current Price to earnings ratio of 9.5.
In comparison to Banks which are considered a concervative investment recieve a P/E ratio on average of about 12 so in comparison 9.5 is extremely undervalued. If the P/E ratio was given at the same CONSERVATIVE value as a bank today the stock price would be at $1.32. (P/E= 12 X $0.11= $1.32).
Now the other option is the earnings increase but the P/E ratio remains the same. But in this event it is more than likely that the P/E ratio will rise with the earnings. Should enterprise earn 24m at the end of 2014 then the stock should be trading at $1.62 a share. (24m/ 134m shares out= 0.17 * 9.55= $1.62)
In the most likely CONSERVATIVE event that a combonation of the both occur with a P/E ratio of 12 and earnings at $0.17 a share Enterprise should be trading at $2.04 a share. (12 x $0.17= 2.04)
All of my calculations are done under the consideration that no furthur financing occurs that would dilute the shares outstanding and that they earn on the low end 24m by the end of 2014.
E looks like an easy double and if your along for the ride I recomend you purchase band-aids so you can tend to your paper cut fingers from counting all that cash. ALL OF THIS IS SAID IN MY HUMBLE OPINION.