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

To: jrhana who wrote (1744)	4/21/2008 3:00:55 PM
From: Glenn Petersen	Read Replies (2) \| Respond to of 3862

FMG has already filed its preliminary proxy materials: sec.gov The claims history on page 92 highlights the risks associated with their hurricane exposure. Also, see page F-18 in the financial statements. The common shares are trading at $7.28, a huge discount to the December 31 liquidation value of $7.97. The warrants, which have an exercise price of $6.00, are trading at $.50. The company has until October 4, 2009 to complete the transaction. It would take 30% of the shareholders to block the deal. I have to confess that I don't know enough about the insurance industry to give an opinion on this transaction.

To: jrhana who wrote (1744)	4/23/2008 12:18:15 PM
From: jrhana	Respond to of 3862

I've realized that to say that ESA has a P/E of 2.79 is probably misleading. That was based on the quarter ending 12/31/07. During 2007 ST Pipeline made an extraordinary profit based on one contract. ST Pipeline will probably make quite a bit less in 2008. Although CJ Hughes has rapidly growing and high margin revenue and profits, it will not entirely make up for this in 2008 at least. So while ESA still represents compelling value, it would be an exaggeration that it currently has a PE of less than 3.