Savvy Trades and Investments

[researcher59]

ESOA -.10 to 5.32, is in the energy business - a big chunk of it is pipeline construction and maintenance for the oil and gas industry. The last 2 years have been boom times as domestic production increased sharply and new pipelines were needed for collection and transport. Now energy prices have fallen sharply and it looks like we may soon have a NatGas glut. So that could diminish new pipeline demand and even cause orders to get cancelled and backlog to decline. That's the risk with this stock, along with the adverse seasonality of the next 2 quarters.

I picked up a small position but will await the Dec Q1 results and backlog to be announced in mid Feb before buying more aggressively.