PDG Environmental Inc. (fka PDGE)

[speckulater]

Still Value In FlagShip PDG


New investors here must surely be wondering why the share price is so low. Here is a recap:

Flagship PDG Environmental Inc. provides environmental and specialty contracting services to private sector clients, and government and public institutions throughout the United States. Its services include asbestos and lead abatement; disaster response/loss mitigation, such as emergency response, loss mitigation, and structural drying; reconstruction and restoration for natural and man-made disasters. In short it has been termed a "Hurricane" stock, as such its business can be cyclical. As recently as 2006, the PDGE stock price was $2.27 a share.

For the period ended October 31, 2009, PDGE Revenues decreased 59%. The main 2 reasons cited were:
1.) Result of lower capital spending by clients due to the recession.
2.) Lack of natural disasters in the current year compared to last year, when PDG benefitted from work generated by hurricanes Ike and Gustav.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=47792190

PDG, founded in 1984, had total secured debt of roughly $12.9 million due within 12 months, according to its SEC filing, and company management said the company may not be able to extend the loan agreement or replace the financing at the same or similar terms. “Because the global capital and credit markets have been severely constrained, additional financing may contain more onerous debt covenants that may be difficult for the company to achieve,” management wrote in the filing.

The company and investors knew there were problems, but were still stunned when on February 23, 2010, Huntington National Bank had the company by Order of a Judge placed in Receivership. Shortly thereafter PDGE Management all resigned.
http://biz.yahoo.com/e/100226/pdge.ob8-k.html

Fearing Bankruptcy where Common investors are usually left with nothing, the investors sold in a panic from .07 to .011 on the day of the news:
http://finance.yahoo.com/echarts?s=PDGE.OB#chart3:symbol=pdge.ob;range=my;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

Now that things have settled down, the facts are that there is no "Q" on PDGE, this company still has value. The company is still open for business:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=47239931

One investors opinion:
http://seekingalpha.com/instablog/586413-vsuccessful/56741-pdg-environmental-inc-too-bankrupt-not-to-buy-not-bankrupt-yet

Another investors opinion:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=46472091

Book Value of .22 per share, should be .04 or .05 in liquidation value at least:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=48655652
http://finance.yahoo.com/q/ks?s=PDGE.OB

$10.8 Million NOL's - Orders Backlog of $17.8 Million:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=48707388

Undervalued Asset Play:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=48758562

Buyout Candidate:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=47711643



In Summary

When the surprise news hit investors panicked and oversold. The fact is there is no "Q" on the end of PDGE, this story is not over, there is still a lot of value in the Flagship. No one has ever said this is not a good company with a solid business plan. PDGE has temporarily fallen on some slow times, and was squeezed by some debt coming due at a bad time. We believe that there are several different scenarios could happen here that will provide investors with value. Ranging from a Buyout or sale of some or all of its assets, Liquidation, or the company could even have a dramatic turnaround with the coming of the next big storm or hurricane.

Do your own DD.


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