Blank Check IPOs (SPACS) Message Board

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Technology Stocks : Blank Check IPOs (SPACS)

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To: jrhana who wrote (1615)	2/22/2008 9:35:03 AM
From: jrhana	Read Replies (2) of 3862

The substitution of CJ Hughes for GasSearch may actually have a quite positive spin to it. CJ Hughes is a large, very profitable, and growing company with multiple divisions all of which are doing extremely well. Not only are all divisions very profitable but they have a huge amount of work on back order. There is room for growth in profits and revenues for years to come. The parent company specializes in pipeline construction. The web space is pretty bare bones. cjhughes.com But they are definitely moving into the big time. They are doing a huge amount of work for Marathon Oil. Marathon Oil has been so pleased with the quality of CJ Hughes work that it is simply giving a lot of work directly to CJ Hughes without competitive bidding. CJ Hughes is a multi-state outfit and have recently hired someone with international experience to map out a possible international expansion in future years. But they are more than pipelines. They have a fascinating division called nitro-electric: nitro-electric.com herald-dispatch.com As can be seen from their web space, nitro-electric itself has multiple projects and divisions. nitro-electric.com A major focus is supplying electrical work to the electric companies. nitro-electric.com This work clearly needs to be done right, and an adept company like nitro-electric can be (and is in the case of nitro-electric) very profitable. Included among nitro-electric's major projects is key work related to power transmission and distribution for a number of electric utilities. These kind of companies are crucial around the world. Message 24335017 As far as how the recent changes affect the near future of ESA, there are some points to consider. CJ Hughes was always there as a backup and in this case the backup plan is looking at least as good as the original. CJ Hughes is well know to the ESA principals. CJ Hughes is a sure thing and was probably going to be included in the second phase of acquisitions using the warrant conversion money. The other company, S.T. Pipeline is delighted to be merged now with CJ Hughes as there will be significant synergies and cost savings involved. The size of CJ Hughes probably precludes the inclusion of any other companies in this first phase of acquisition. This is a positive not a negative. There are several small profitable and well run niche companies in the energy or energy services fields that can be acquired easily after ESA emerges from its SPAC status. The paperwork involved with the SEC under SPAC regulations is extraordinarily time consuming, complicated, and burdensome. Multiple small acquisitions should prove dramatically easier for a normal company than for a SPAC shell. Remember CSCO? I have certainly learned that SPAC investing takes the patience of Job. But (as I have been saying for many months <g ng>) the end should be soon. Hopefully that SEC audit will be out within a few weeks. Hopefully it will show knock your socks off profitability and revenues. The purchase of any SPAC warrant is inherently risky with ground zero always being a possibility. I feel nonetheless that the recent pullback in ESA warrants represents a compelling buying opportunity. Of course, I have said that a few times before.

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