Energy Recovery: CFO Departure Should Be A Wakeup Call, Says Wedbush
Late Friday, Energy Recovery, Inc. (ERII) announced that its CFO Alex Buehler would be departing. While few details were released, Wedbush analyst David Rose finds his departure a red flag.
“Hand-picked by Tom Rooney, the company’s CEO, the two had worked with each other at another troubled company, the former Insituform (now Aegion: AEGN). While ERII continued to highlight the market potential for its new products, it recently reported its worst revenue quarter as a publicly traded company. Meanwhile, Mr. Buehler began selling shares in March and again in June. The question we have is, “if ERII’s outlook was so promising, why leave after a short time?”, Rose wrote.
According to TipRanks, which measures analysts and bloggers success rate based on how their calls perform, analyst Jon Andersen currently has a one-year average return of 22.3% and a 57% success rate. He is ranked #1242 out of 3140 analysts.