$44,000,000 revenue? Joey Bags really thinks that this is a drop in the bucket. Joey Bags believes that our boys over at EES might have been born at night but they sure weren't born "last" night. They know exactly what each of the EF60's will yield in revenue and the contract with CLH reflects that...oops, did I say CLH ? I meant to say "undisclosed company".
Just a couple of things to ponder here.
Joey Bags put on his Ninja suit the other day and navigated the alley way behind ESPH's main facilities and saw some very interesting work going on. These guys are hard at work building what Joey believes are the new EF 60's that are scheduled to be delivered mid May 2011. Where did Dennis get the cash to start building out these new models and why would they be building them without a signed contract ? Joey Bags believes that EES has already given Dennis the OK to build wink. Either they received an advanced payment or one of the inside guys are pre-funding (William Foley).
Joey Bags believes that the contract outlines an additional 104 units (120 total) to be delivered over a 5 year period. 2.750 X 120 units = $330,000,000 alone on revenue over 5 years to EES (we get 51%)ESPH cost are around 1.3 for each unit +/-. Margins will expand as production ramps up but will take some time.
Now lets look at Licensing costs: I called a few pals to get a better handle on this and we all came up with a initial flat annual renewable fee of $15,000 per machine indexed to CPI. 120 machines X $15,000 = 1.8 in additional revenue to EES (51% is ours). Remember that this is a recurring # every year !
Royalties.........the Rolling Stones are not the only people that will get payed when they get played !EES will as well. Consider this:
The volume of water necessary to drill and fracture Marcellus deep shale gas wells represents a very small percentage of the total water resources used in the Marcellus geographic region. This region generally includes central and western Pennsylvania, southern New York and northern West Virginia. The total water use in the Marcellus Shale area in 2000 was approximately 3.6
trillion gallons. The natural gas industry is expected to
increase the amount used by less than 0.1%, and is well
within available resources in the region.
At 5-6 million galloans per well Joey Bags believes that there is .002 - .005 cents per gallon for EES which leaves more than enough for CLH, oops...there I go again. At these levels we could possible see royalty payments of $30,000 per machine for every well they drill. 120 units = 3.6 million if each unit only fracks 1 well per year. We are talking about thousands of well here. This is far beyond huge !
Joey Bags believes that at full production we could be looking at well over a couple of hundred million per year with natural expandion of 3% per year. AND THIS IS ONLY THE GAS & OIL INDUSTRY !
So where will we see this going. Keep in mind that this stock is tracked by a very very very small group of speculators. Mainstreet is not on board yet....but just wait.
Joey Bags believes that we will see 4-5X price movement on the announcement. After a run up we will see every bottom feeding penny stock slugg bailing with the belief that they finally hit "pay dirt". This will soften the stock for a very brief moment......until EVERYONE hears about this news. The stock will swell on speculation through 10-15 X current bids and leave alot of people saying "I really should not have sold".
Just remember..........Joey Bagofdonuts is already rich !
ESPH will make him wealthy.
Thanks You Dennis !
