Why EnerNOC's Shares Popped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of EnerNOC (NASDAQ: ENOC  ) jumped 23% today after the EPA announced a new emissions ruling.

So what: The EPA released a rule that said that diesel generators can run without special environmental safeguards for 100 hours per year, far more than the 15 hours the EPA was discussing. CEO Tim Healy will discuss the new rule and its impact on EnerNOC tomorrow at a conference in New York City.

Now what: This shouldn't have much of an impact on EnerNOC's business long-term, and I think the move is greatly exaggerated today. EnerNOC is in the business of matching up energy demand with limited supply, compensating users for turning down demand at peak times. This ruling won't have a big impact on the business, and I don't think the pop will last long.

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Read/Post Comments (7) | Recommend This Article (3)

Comments from our Foolish Readers

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  • Report this Comment On January 15, 2013, at 6:17 PM, tdotsports1 wrote:

    That was my initial thought as well. Mr. market was very generous in its share price offering for those looking to sell. 25%? Seems a tad overdone.

  • Report this Comment On January 15, 2013, at 6:17 PM, jimmy4040 wrote:

    ENOC is clearly being manipulated by pool operators, probably the most obvious case I have seen this decade.

    Eventually this will result in an idictment, or some shareholders left holding a very big bag.

    A completely dishonest stock.

  • Report this Comment On January 15, 2013, at 11:08 PM, muji wrote:

    Pretty weak article.

    ENOC sued against these newly proposed rules. Perhaps you could have looked into WHY they opposed the restrictions, and HOW the relaxed rules would affect ENOC and, in particular, their demand reduction customers that utilize generators to feed energy back to the grid in peak load reduction times.

    Would ENOC be involving the courts against EPA if this "shouldn't have much impact on ENOC's business"?

  • Report this Comment On January 15, 2013, at 11:49 PM, muji wrote:

    Since i was complaining about lack of info - i figured i'd write up the whys and wherefors as to how this greatly affects ENOC's ability to reduce load.

    http://beta.fool.com/muji/2013/01/15/why-enoc-popped/21783/

  • Report this Comment On January 15, 2013, at 11:59 PM, WatchfulEye1776 wrote:

    fully agree with jimmy4040.

    readers, Motley Fool has always given the appearance of being a shill for management.

  • Report this Comment On January 16, 2013, at 9:52 AM, leaderoftheback wrote:

    FWIW-

    From a technical standpoint, regardless of what happens to the sahre price in the next few says, yesterday's pop is an extremely bullish move. Anybody who is not a day trader would be foolish to sell their shares.

    just sayin'.

  • Report this Comment On January 16, 2013, at 11:32 AM, Idahoaz wrote:

    It would be nice to know why the stock popped long before there was any information released to the public (at least that I could find). Nope, no leaks here.

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