Perma-Fix (PESI)

[value1008]

Link to the conf call....
http://seekingalpha.com/article/4024851-perma-fix-environmental-services-pesi-ceo-lou-centofanti-q3-2016-results-earnings-call?part=single

Like the earnings PR, there's a mix of poor news with promising news.

To reiterate, i'm not in this one and don't plan on buying right now, but i find the longterm story extremely interesting.

The high-level radioactive waste treatment could be huge, but the 2k gallon demonstration won't occur until sometime next year, and major operations and profits likely would not happen until 2018. It's not the tech but all the meticulous paperwork that needs to be done to make it happen. But customer WCS "is very excited."

On the medical front with the PFM subsidiary, if the big investor opts to cash in all warrants down the line, PESI would only own 25% of PFM. But, said CEO Lou Centofanti, that would be 25% of $0.5M to $1.0M annually. And with this initial investment by the big investor, senior mgmt doesn't need to worry about funding PFM anymore and can focus more on their treatment biz.

Their normal treatment/services biz was hit hard by govt spending delays. Lou is promising around $1M EBIDTA for Q4, but the interaction between the CFO and an analyst indicated that the qtr will likely show another EPS loss due to various factors.

Because of the govt uncertainty factor, Lou is not even giving any forward guidance at this point.

One shareholder on the call explicitly expressed big disappointment with all the missed targets on various fronts by PESI.

But still the co. seems to have immense promise on two different fronts: the high-level treatment and PFM. However, it seems any significant revenues won't be happening until 2018. That's a LONG WAIT for many folks, requiring a lot of patience for present shareholders.