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Technology Stocks : Blank Check IPOs (SPACS) -- Ignore unavailable to you. Want to Upgrade?

To: jrhana who wrote (1692)	3/24/2008 9:45:33 AM
From: jrhana	Respond to of 3862

Probably not many people will take the trouble to read through the 307 page SEC document just put out by ESA. secinfo.com But I have and it is a magnificent document. Clearly they have put in a huge amount of work in this. They have actually been working long hours constantly for over 18 months on this undertaking, and from I understand they are exhausted. The official news release will probably come out by tomorrow. Up to now they have legally been unable to do any kind of publicity work. They are fully aware of the need to get their story out so they will be seeking some strong IR help. Up to know they have been extremely careful with their cash so they have plenty of money available to spend on a strong public relations campaign to sell what they have to Wall Street. With their latest quarter earnings of $.57 cents a share, $10/share looks cheap for ESA.

To: jrhana who wrote (1692)	3/24/2008 12:07:11 PM
From: jrhana	Read Replies (2) \| Respond to of 3862

To show how cheap ESA really is, one needs to consider that in today's market a ratio of 6 over EBITDA is considered quite cheap or reasonable for a SPAC. The actual combined EBITDA for ST Pipeline and CJ Hughes was 34.47 million in 2007. The combine shares in the new ventures will be very close to 14 million (including the 20 share of the deal's principals and the shares used to purchase CJ Hughes). That leaves EBITDA/share at 2.46. Using the current price of $5.75 that means ESA's price/EBITDA is an unbelievably low 2.34. to even achieve the still very cheap ratio of 6, ESA would have to trade at 14.76. Admittedly ST pipeline had an incredible year in 2007 so they may not improve much in 2008, but revenues and earnings at CJ Hughes are just exploding. This should combine for some very nice growth in both revenues and earnings for ESA in 2008. ESA is cheap cheap cheap. Soon after the transaction is completed, ESA will continue to expand. They expect soon to be a vertically integrated natural gas producer based in Appalachia with over 500 million of high margin revenue. It is going to be a monster.