Maybe thats why the volume increased on Friday. How true David, it's almost axiomatic. First, the volume, then the price moves.
I responded to Bacon Butts with a clarification. In their Email they mentioned 3 million in revenue for EnviroTec in FY99. At my ridiculous $5/bbl rate, that's only 2400 bbls/day! IMHO, 0 bbls/day is more likely than 2400 bbls/day
I sent the following back to BaconButts and they will add it to their release.
Kerry-- I have been long CSMA since last summer.
I just wanted to add some clarification comments to some of the paragraphs:
Your release said:
< Enviro-Tec's waste water disposal well in Utah for non-hazardous
disposal is expected top gain a Class 5 permit in April 1998. Enviro-Tec is expected to contribute at least $3.3 M in revenue and $0.07 of earnings during fiscal 1999. >
Trader Greg adds:
The well has been approved by the Utah Legislature plus tougher
fines/penalties for illegal dumping have been passed. Legislation is on
Governor's desk for signature, hopefully this week!!. A month ahead of
legislative schedule. Think they want this well? The well can handle 14400 bbls/day in an area with a demand for 50000 bbls/day. The per barrel rate has been estimated at between 10 and 30 dollars per barrel, but I used 5 dollars to come up with some compelling numbers for FY1999 (June98-May99)
1440 bbls/day x 250day/yr x $5/bbl = $18 million in revenue, with modest costs as the well is already profitable with Class II waste that yields 50 cents per barrel!! The $18MM in revenue is 78 cents per share based on the current shares O/S of 23million. That is a P/E under 1, from the enviro well!! Remember, these numbers are based on just $5 per barrel with no consideration to AdHatters, LPS financial, or Pickens oil/gas operation!!!
Stock has been hammered since it hit 2.62 in November, ostensibly because they are not a fully reporting company as yet and have pending litigation with a former investment banker (as if this is shocking for a bb stock!) Just wanted to add this info.
TG |
