I'm not saying I don't believe you but is there any way you can give us concrete evidence? I think we need this just for credibility since you're new to ihub. After you've been posting on the boards for so long you can tell who a credible poster is and who isn't.

My email to David and Neil:

You're supplying chemicals?

Did you already try calling the ESP FPS office to see if they are still in business?

Yea, it's either because they have no news or only bad news to report.

Or, because there's an obligation not to release any information that may affect the PPS (aka merger/acquisition).

I don't think its the latter of the two.

2 Explainations I can think of for why he is not responding to investors:

1) He's arrogant and doesn't give a $hit.

or

2) They are in a "quiet period". Which would indicate merger or acquisition. This is highly doubtful but a sparkle of hope.

I'm not out...

As of this year, Dugas never emphasized the need to be profitable. Up until the conference call and the Q4/Annual Results PR where he acknowledged the company needs to become profitable in their next stage of growth. So, I'm going to give it until the end of the year. If I see any improvement in expense control, I'll stick with them.

If cash is squeezed and the end is in sight then Dugas needs to be looking for a merger candidate. Only way I see him saving the company if it's truely going under.

That would obviously be a smart decision. At my company, we treat each one of our individual sales offices as their own company. Headquarters will finance their operations for the first 1-2 years but if they do not start turning a profit, their is no use in keeping them open. It's throwing good money at bad. No return on an investment if they can't be profitable and cash-flow positive.

I think we need to understand why their business in AR hasn't been performing. Is it...

a) Their products & services suck, causing them to lose the account.

or

b) The rig count in Arkansas is at its lowest level in more than six years and consequently, production and hiring in the Fayetteville Shale has stalled. In Arkansas, there were only 27 rotary rigs operating as of March 23, well off 38 a year ago.

This is a huge difference. If their customer in AR is cutting production and drilling, then obviously ESPIs business in the area would decline. I think this is why you hear Dugas say multiple times in his PRs that they are working to expand their customer base.

I find a) a dubious claim considering Exxon is their largest customer. Would Exxon still be contracting ESPI if this were the case?

Are you able to provide me with some names of their vendors? Either chemical vendors and/or vehical vendors? Then I can check my sources.

Also, it looks like you are very new to the board. Mind me asking what you do for a living? Industry?

I think its a very true email. I really hope you hear back.

The decline in PPS may be for those warrents that were already outstanding. Actually, if you look at the O/S on March 31, 2013 and the O/S on December 31, 2012 it didn't change much.

From the equity section of the 10Q income statement:

From the Schedule 14A filed in February:

I agree. He and Tony together own a majority of the voiting shares so what's it to him that shareholders are bit$hing and complaining. It's not like we could vote him out.

However, I would assume he has some sort of exit strategy out of the company. Either by straight up selling it or selling off his shares. Either option would benefit him more if the PPS was up. I think he still has that "growth stage" mentality after all these years. Interested to see if profitability is reached in Q3.

I think it's all contingent on when Exxon starts drilling.

That's what is so frustrating. He has actually done a good job growing revenues every year. In fact, this is the only quarter I've seen where revenues are down from the same quarter in the previous year. The company has alot of potential if he can just focus on making it cash flow positive and profitable. He did acknowledge that the next phase of growth is to become profitable. I will keep watching to see what changes/efforts are made throughout the year.

The guy owns 19 million shares. I highly doubt that he is satisfied with watching the value of his shares go down this much.

Looks like the Papua New Guinea investment will not materialize until next year. Just saw this article posted today.

haha

Neil responded but didn't provide any information on the IEM Subsidiary. I replied to the email asking if there were any recent developments.

Here is a connection. If you do a search on "Brandon Hillman", you can find that he is connected with the University of Louisiana Lafayette (Dugas alma mater) and a company called Precision Process and Pipeline Services. Do a search on Precision Process and Pipeline Services and you'll see it has the same registered business address as ESP's Scott, LA office. If Brandon merged his company into a division of ESP and changed the name to ESP FPS, then I'm wondering why the company wouldn't announce that?

I also just shot an email to Hillair Capital.

No word. I emailed Neil today to inquiry about the IEM, Inc. subsidiary formed in April. If I don't hear back in a day or two I'll call.

No. Just did some research.

Glad to hear from ya. One of these weekends when I don't have anything going on I plan on driving to Scott, LA to take a look at the facility. The ESPFPS office is on the same street but different building.

Management comments on the 10-Q:

Is his name Brandon Hillman?

I'm not talking about whether or not Bray and ESPs products are alike or unalike. I'm talking about the general business model for distributing trade goods thru wholly owned subsidiaries or thru distributors. ESP, Bray, Baker Hughes, Halliburton, Abbott Laboratories, Apple, ect., doesn't matter the industry, each of these companies applies the use of distributors and wholly owned subsidies. In fact, ESP invites companies to their offices to train independent sales reps on their products. Just as all these other companies do.

So, what I'm trying to find out is who the distributors are in West Africa and Alberta.

ESP provides products (facking chemicals) and services. Just like Bray International provides products and services. If you want to dig deeper then we can

No need to give me a lecture on international business 101. When companies say that have a location, either domestic or international, they either have an "ESP" legally incorporated office in country or an exclusive distributor relationship. The company I work for has 45 office across the world but well over 100 distributors that are located in places we have no presence. We promote their location in exchange for an exclusive distributor agreement. They license our products just like a distributor in West Africa could do the same for ESPI

Got to time your exit right. Last time I believe the promo went up 80% in 3 days. With such a low PPS at .03, I'd expect this to go at least 100%.

Could be some promoters loading before a paid promo goes off. Betting this is how Dugas is going to respond to the pps. Another short term promo perhaps?

I sent an email to ESP Facility and Pipeline Services asking to forward me their contact info for their West Africa and Alberta Canada offices. I want to check them out.

Sounds to me they're waisting their money on Neil as well if he's not responding to investors. Considering its his job.

GOOD!! Maybe if his own employees start complaining about the pps he'll actually be responsive. If he doesn't and I were an employee, id consider leaving the company.

The lawsuit was settled in Q4-2012. That's been several months ago?

Have you talked to either one of them recently?

Page 6, first paragraph. The company formed a new division called IEM, Inc. In December 2012. They need to stop creating these damn divisions and focus on the bread and butter.

If only I had the money. Id buy out the majority to vote out management and completely restructure. Hire on Todd Sanner, President of Chemicals and Logistics for Floteck as the new CEO. The guy is perfect for the job.