Blank Check IPOs (SPACS) Message Board

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Technology Stocks : Blank Check IPOs (SPACS)

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To: jrhana who wrote (1798)	6/11/2008 9:30:33 AM
From: jrhana	Read Replies (1) of 3862

ESA seems to be coming to life with good action in both the stock and the warrant. Meantime energy prices remain high, could correct, but could go higher at least LT. I have seen recently Fidelity Select Energy Services (FSESX) and Fidelity Select Natural Gas (FSNGX recommended as good energy plays seekingalpha.com ESA would fit nicely into both of these funds (although maybe they are not looking for my advice <g>) Yahoo gives a lot of data for both funds including their major holdings finance.yahoo.com finance.yahoo.com If you scroll down on these pages, you find composite p/e ratios for the funds FSESX=16.81 FSNGX=17.54 By my calculations ESA has a p/e of around 5 based on their first two fiscal quarters. (Again I believe that earnings will be growing rapidly) ESA still looks dirt cheap to me. Because of the vagaries of SPAC investing there is about a 2-3 million overhang of SPAC arb shares which need to be bought out at around $5.97 (the break up value). So you might have a window of opportunity here to buy a great little company at a bargain basement price. No guarantees on anything including how long ESA will stay this cheap. Maybe Fidelity will want all those cheap shares. Or maybe RBC with its 3,000 brokers will sell them quickly. (From what I understand RBC has studied the ESA deal closely and likes it).

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