By: Van Morris posted Feb 28, 2008, 8:09amEnernoc stock finished off its recent slide with a thump, driven by a conviction to invest for the opportunity.The sound byte was an earnings miss, which eclipsed a deeper story of fantastic growth and a ballooning backlog.
Lag times from sales expenses to revenue recognition are greatest in the congested PJM Region which currently has some of the juciest prices for capacity and energy.
So what do ENOC and CRM have in common? From an inside view, they can calculate the Net Present Value of a newly acquired customer, and they can track renewal rates.
I’m reminded of the multiple “you’re spending too much for growth” pullbacks that have occurred in Salesforce.com’s stock history – including the one that came within the first public year.
The risks are different, but the calculus is quite similar, and guide rational internal investment decisions.The company was on sale at a discount to their IPO price today.
Disclosure: I am now long the stock. Readers should know that our position could change without disclosure or updating this blog.
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