Value Microcaps Junior Energy

[Bobwins]

I believe it is repeatable. They have indicated that the Los Angeles market has high demand for processing industrial waste water and after they improved the plant operations, they had more business immediately. They are harvesting raw materials for the renewable energy from the waste water.

The process of gaining profitability has taken many qtrs and as you can see from the chart, investors have suffered.

I believe their current focus is much more likely to lead to long term revs and profits than their previous focus on treating produced water and frack water from drilling oil and gas wells.

This is a major step up for RDX so there could be some uneveness but I would guess that there is good potential to increase revs as they fix up the acquired plants and get them ready for the dual purpose of water treatment and production of renewable energy.

In order to acquire the three old waste water facilities, they had to issue equity and take on debt so they do notes payable but debt/worth is very reasonable at 1 to 1 and this surge in business bodes well for future qtrs.

Bobwins