Here is something I found on BOBz site.
COCONINO
NASD OTC-BB: CSMA
The following item appeared in the OIL & GAS REVIEW, CDESSA AMERICAN, October 26,
1997:
QUOTE:
"Another positive of purchasing stock in companies owning oilfield equipment is that the current price
of such equipment has shot up this past year. Hence, many of these companies are worth
considerably more than their balance sheets indicate. The result is that service companies are
increasingly able to "name their own price" for their work. And that flows to higher bottom line
earnings. So, let's go shopping.
Coconino (CSMA) is a penny stock with an actual balance sheet. This company is sort of a
miniconglomerate with interests in air fresheners, oil and gas, and mutual funds. The stock has fallen
from nearly $10 to 20 cents. It attracted our interest when it recently swapped an oil property for a
block of stock in ERHC. M-3 Inc., headed by Boone Pickens' son, Michael, has taken an equity
position in CSMA and is recommending the stock."
END OF QUOTE.
An additional recommendation can be found in THE HACKMAN REPORT, 20 September, 1997:
QUOTE:
COCONINO'S ENVIRO-TEC MOVES AHEAD ON CLASS V PERMIT
POWERFUL OPPORTUNITY FOR COCONINO S.M.A. INC.
(NASD OTC-BB: CSMA)
Enviro-Tec, Inc. Operates a Class II Disposal Injection Well in northeastern Utah that services
regional oil and gas operators. It has received full EPA approval for Class V wastes, and with the
State of Utah's approval, it will become the state's first public Class V Disposal Injection facility.
The state's Class V rating will finally allow Coconino's wholly-owned subsidiary to dispose of
commercial non-hazardous wastes, and charge $16.80 - $29.40 per barrel, rather than the $0.40 -
$0.70 per barrel that it currently charges.
The facility has the capacity to process more than 7500 forty-two gallon barrels per day, 250 days per
year.
Currently, the well brings in approximately $700,000 in revenues annually, with direct overhead
estimated at less than $100,000.
With a Class V permit, and a regular stream of customers, the net revenues to Coconino and the
return to shareholders could be substantial. For example:
$28.00 per barrel
x 7,500 barrels per day
x 250 days per year
ö 13,100,000 shares outstanding
= $4.00 per share cash flow
__________________________
WITH A CLASS V PERMIT, THE NET REVENUE TO COCONINO AND THE RETURN TO
SHAREHOLDERS COULD BE SUBSTANTIAL. |
