Great Tang Bid Technology Inc (GTBT)

[stervc]

ESPI:OTCBB Hydraulic Fracturing Valuation Post…

ESPI increases the oil and gas production for multi-billion dollar companies along with doing such with some smaller companies too. ESPI do this by extracting the toxins and other material from the oil/gas pulled out of the ground by the multi-billion dollar companies so that their oil/gas can be used by us… the consumers. This is why there will always be a huge demand for their services.

More and more of these major oil & gas companies are quietly learning about ESPI because ESPI’s typical historical performance shows increased productivity from natural oil & gas wells by up to 200% and for some even much greater from what I have learned. This is very important because imagine if you are already making billions or millions of dollars within the oil & gas industry; this means more billions and millions you will make because of using ESPI’s process for extracting your oil & gas which extracts more oil & gas than any of your predecessors you previously hired. They have a special blend of petrochemicals of which nobody have yet to even come close to the enhancement of production ESPI brings to the table for a company.

ESPI has already filed with the SEC millions of dollars they are making from this extraction of toxins from oil & gas with their petrochemicals. In addition to this operations, now let’s consider these newly extra revenues coming in from their hydraulic fracturing (fracking) operations.

ESPI PR-ed below back on 5 July 2011 that they already had two hydraulic fracturing units and were constructing six additional units that they anticipated delivery of each new unit between now and the end of September (total of eight).
http://ih.advfn.com/p.php?pid=nmona&article=48320991

From my research, this goal has been met. To add, the company mentioned in the PR below that each unit generates $200,000 per month per unit.

http://ih.advfn.com/p.php?pid=nmona&article=49137934
Revenue generated by the Company from these units is projected to average over $200,000 per month per unit.

With a total of eight fracking units and generating $200,000 per unit, that’s a total amount in revenues indicated below…

$200,000 x 8 Fracking Units = $1,600,000 Fracking Revenues

$1,600,000 x 12 months = $19,200,000 Fracking Annual Revenues

The company expects to clear an at least 40% Net Profit from these hydraulic fracturing operations from what I have learned from people that have been in contact with the company. That gives Net Income in the amount indicated below…

$19,200,000 x .40 Profit Margin = $7,680,000 Net Income

Now let's determine an Earnings Per Share (EPS) to help us further derive where ESPI should be fundamentally trading.

EPS = Net Income ÷ Outstanding Shares (OS)
EPS = $7,680,000 ÷ 103,820,000 (OS)
EPS = .073 per share

To now determine where ESPI should be trading, we must use the Price to Earnings (P/E) Ratio as the multiple to multiply with the EPS to determine where ESPI should be trading. ESPI trades within the Oil & Gas Drilling & Exploration Industry within the Basic Materials Sector as indicated within the information below within Yahoo Finance. Its industry of which it trades yields a 14.10 P/E ratio. Let’s now determine where ESPI should be trading considering its 14.10 P/E ratio:
http://biz.yahoo.com/p/123conameu.html

.073 EPS x 14.10 P/E Ratio = $1.02 per share

This means that ESPI should right now be fundamentally trading in the area of $1.02 per share just based on its hydraulic fracturing operations. The beauty about this valuation is that it does not include the millions they are already making from their petrochemical operations.

Still, we can go one step further and know that at the rate that ESPI has been growing exponentially to have completed eight hydraulic fracturing units from the July 2011 time frame, it is safe to realize that by the end of the first or second quarter of 2012, ESPI is on course to continue its expansion to have double the amount of hydraulic fracturing units for a total of 16 units. This would give them double the amount of revenues $38,400,000 from their hydraulic fracturing units. Now we can derive the future valuation for where ESPI should be fundamental trading in the first or second quarter of 2012 based on its potential.

$38,400,000 x .40 Profit Margin = $15,360,000 Net Income

Now let's determine an Earnings Per Share (EPS) to help us further derive where ESPI should be fundamentally trading.

EPS = Net Income ÷ Outstanding Shares (OS)
EPS = $15,360,000 ÷ 103,820,000 (OS)
EPS = .147 per share

Let’s now determine where ESPI should be trading considering its 14.10 P/E ratio:
http://biz.yahoo.com/p/123conameu.html

.147 EPS x 14.10 P/E Ratio = $2.07 per share

This means that ESPI should right now be fundamentally trading in the area of $2.07 per share just based on its future potential from their hydraulic fracturing operations. The beauty about this valuation here is that it still does not include the millions they are already making from their petrochemical operations as like the valuation above.

Given today’s market conditions, I think ESPI is continually proving that that they are definitely one of the spots to be for investing as growth has been continual as they file regularly with the SEC and trades on the OTCBB exchange.

v/r
Sterling