Value Microcaps Junior Energy

[Bobwins]

espi looks interesting. Hasn't turned a profit yet and still needs financing to survive. Growing rapidly with double revs over last year. This trend is likely to continue with overseas JV providing much of the growth. Building infrastructure in Papua New Guinea as Exxon Mobil is building big LNG plant to export to Asia. Huge ngas resources in Papua New Guinea.

Not going to make much money anytime soon and has a ton of warrants out there almost equal to outstanding shares so FD share count is near 200million.

Espi has already gone up 50% in the last few months. Probably ahead of itself, in terms of proven results but if the trends continue and the JV works, they should double revs again in 2013.

I like the fact that they provide custom chemicals for the life of the well, not just completions. Should make longer lasting and not just dependent on current wells being drilled.

Warrant overhang worries me along with continual need to finance. Last deal in June was very sweet for investors, but heavy on dilution.


Here is a paid research report:

http://primeequityresearch.com/wp-content/uploads/Prime_Equity_Report_ESPI_Initiation_June25_20121.pdf