Major turn-around in place for solid growth during 2015 and beyond.
For a .01 investment the real risk in not to engage for potential huge gains.
ESP Resources, Inc. ( .012 ESPI)
Manufactures, blends, distributes and markets specialty chemicals and analytical services to the oil and gas industry in the United States.
The company supplies specialty chemicals for various oil and gas field applications, including killing bacteria, separating suspended water and other contaminants from crude oil, separating the oil from the gas, pumping enhancements, and pumping cleaning, as well as a various fluids and additives used in the drilling and production process. Its products comprise completion petrochemicals that are primarily used during completion stage of oil and gas wells that are drilled in various SHALE formations.
The company's products also comprise production petrochemicals, such as surfactants for treating production and injection problems; well completion and work-over chemicals that maximize productivity from new and existing wells, bactericides to kill water borne bacteria growth, scale compounds to prevent or treat scale deposits; corrosion inhibitors, which are organic compounds that form a protective film on the metal surfaces to insulate the metal from its corrosive environment; antifoams for controlling foaming problems, emulsion breakers that are formulated for crude oils containing produced waters, PARAFINS chemicals that inhibit and/or dissolve paraffin to prevent build ups; and water clarifiers midstream, and downstream sectors of the energy industry.
The company was formed in 2006 and management has over 100 years experience within the industry.
From recent financial filings it is easy to see that this company has had major issues with respect to executing a sound and profitable scenario for corporate growth.
In our opinion, this is about to change dramatically because of the recent aligning on product mix , disposing of non-profitable operations and most importantly been granted a new line of healthy credit @ much lower rates than prior agreements.
For the year ending Dec 2014 revenue will be at least $12 million and we anticipate losses for the year because of write downs and dissolving of certain operations and option compensation to management in the form of stock option because they took little salaries. Management intends to remove all the "dirty laundry" during the 4th Q of 2014.
This will allow for a "NEW" and fresh start for 2015 and beyond!
Please review the recent press release that the company prepared and released in the form of an 8k filing with the SEC and a public document outlining future activity dated Oct 9th 2014.
It should be noted that first Q showed a profit from continuing operations. At present the company is prepare doc's for the second Q, which are late and because of this the company is listed on the "pink" temporarily because they changed to a new accounting firm. Management anticipates complete compliance with the SEC so as to be relisted as a fully reporting company near term.
From the recent press release dated Oct 9th management mentions a new line of $4,000,000 and that because of re-alignment of operations that many new clients have been contracted. According to our discussion with management representative that revenue will grow by at least 30-35% during 2015 and that the company will show a profit from operations! In addition, management believes that this number can be increased and can handle any additional surge in business above and beyond the estimates made to S A Advisory! The revenue est. for 2016 will be at least $16 million+, net income/sh and fully compliant with the SEC!
At present there are around 250 million shares fully diluted & outstanding and there is also a $1 million convert. outstanding that has a conversion @ .05 . The price was recently change because they are in default. The debt holders we are told have no interest in conversion- they just want their money back. We believe that with the recent re- alignment that this scenario will play out with principle payments.
If you don't like penny stocks--don't buy it!
If you don't like oil related issues because of the recent blood bath and assume that the oil and gas business is over- Don't buy it!
If you don't like extremely tiny companies with business issues Don't buy it!
If you don't believe that this company has a very good shot at turning around Don't buy it!
If you want a shot at huge returns with a small investment and can see beyond the panic on Wall Street during the recent days, especially the crumbling of the Oil and Gas Industry because of temporary economic conditions worldwide then ESPI is for you!
I must admit that there are risks, but maybe the real risk is not buying this .01 Oil and Gas service company. Over the past 40+ years of investing I must admit that if it was not for "penny stock" investments I would not have amassed a portfolio that I currently control and usually profit from!
The recent blood bath has been very destructive to all investors that primarily "play" in the Oil and Gas issues! We still favor averaging down on many because winter is coming, the Middle East could explode worse than it already has, Stimulus programs from China and Europe most likely are coming, OPEC may lower production quotas and this severe sell off in a few months could just be a point on a long term chart!
We rate ESPI with a strong speculative buy recommendation @ currently depressed prices with a target of .10 within 12 months according to management rev and income est. Longer term the sky is the limit if management can execute, grow and expand their business model.. I repeat the real risk is not buying this true penny stock.
Top 8 Oil stocks that should be averaged down.
1. axas***** $4.06
2. tplm ******$8.70
6. oas *******$34.00
7. mkryf**********$1.80 --another new recommendation - no write up yet but will are also recommending it down here!
If we only had to pick 4 of those --cazff,axas,bxe and tplm
Section 1 Subheading
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