Value Microcaps Motherboard

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ERS had a strong Q2 with the higher share count. I'm less worried about the share count and more concerned about the derivative gain/loss that shows up every quarter. Stock would have jumped to the $6's after the good Q3 results if not for that. Bummer. But maybe that means there will be a gain in Q4. They should have a very favorable Q4 comp coming up either way.

The recent sharp drop in gas prices should lead to a sizable reduction in the transportation costs for ERS. Given their slim gross margins, this could have a very positive effect on EPS early next year. We'll see. I wouldn't be surprised to see a .20+ quarter out of them by next summer. And that's with the higher share count :)

I'll gladly buy ERS in the $4.50's. I think upside is $6-$8 while downside is maybe $4. An attractive risk/reward imo. And who can forget when ERS (yes ERS) became a momentum darling back in 2006. Stock went from single digits all the way to $60! I'd settle for a run to $20 in 2016.