Eneti: New All-Time Lows After Weak Q4 Results And Conference Call

Feb. 23, 2022 10:55 PM ETEneti Inc. (NETI) StockNETI37 Comments

Summary

  • Stock slides to new all-time lows following weaker-than-expected fourth quarter results and an embarrassing management performance on the conference call.
  • CEO Emanuele Lauro has a history of strategic missteps and lacks expertise in offshore wind.
  • Profitability continues to be pressured by elevated operating expense levels.
  • Near-term business prospects remain muted with an inflection point for demand not expected before 2024/2025.
  • While shares are trading at bargain levels, only the most speculative investors should be buying into Eneti at this point as the company remains an ultra-high risk/high-reward play.
Epische Randansicht auf Große Offshore 8MW Windkraftanlagen, Windpark auf dem Horizont in der Nordsee mit Jack-up-Boot und Offshore-Plattform in welligem Meer

CharlieChesvick/E+ via Getty Images

Shares of Wind Turbine Installation Vessel ("WTIV") owner Eneti (NETI) are down more than 60% since I initiated coverage of the company 14 months ago.

At that time, the company was still operating as "Scorpio Bulkers" and in the process of selling its

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I am mostly a trader engaging in both long and short bets intraday and occasionally over the short- to medium term. My historical focus has been mostly on tech stocks but over the past couple of years I have also started broad coverage of the offshore drilling and supply industry as well as the shipping industry in general (tankers, containers, drybulk). In addition, I am having a close eye on the still nascent fuel cell industry.

I am located in Germany and have worked quite some time as an auditor for PricewaterhouseCoopers before becoming a daytrader almost 20 years ago. During this time, I managed to successfully maneuver the burst of the dotcom bubble and the aftermath of the world trade center attacks as well as the subprime crisis.

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of NETI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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