ESPH -- Ecosphere Technologies -- (OTC)

[Cosmic]

Ecosphere Technologies is probably a diamond in the rough IMHO.

What I mainly look for in investments are stocks that are longer term value plays. Ones where I understand them from both a business and technology point of view.

This company is one where the technology should be in wild demand just in the oil and gas industry. My understanding to date is they rent / lease out the equipment.

It has all the things I look for in a emerging type technology company. The better mousetrap that is in ever increasing demand. Technology so good it can not fail, somebody will always give them a loan or helping hand up. This starts to have that feel of EMAN thru its early development stages. Many tech start ups fail for a variety of reasons, some succeed just because they are the right, maybe only fit for the demand. There is enough info to get a feel for its future at this point. This also has a feel like BOOM in its very early days.

Go here and read some of the reports, the growth numbers in both revenues / net income might be low. This thing has the potential for a rocket, the demand should be there.

Ecosphere Technologies (OTCBB:ESPH) Equity Research Report

I have slowly been acquiring the shares over a time frame, in for 10K shares in the .70 - .90 range. Type of company I like to bulk up on early, learn it as the development progresses. Again this company might be sort of recession / depression proof. Not finding any real pure solid competition for what they have to offer. Might well be a buy out candidate or partner to a large corporation in future for companies that might need the services in far greater volume than they presently could supply.

Not all the i (dotted) or t (crossed) but I got enough good feel to be biting at this stage. Trading up today over a buck. Something to be knowledgeable about and have a longer term view of. You always go back to looking for companies that can make the number sets explode at some point in the future. I like the risk with this one.

[Cosmic]

ESPH may have the Holy Grail in terms of a driver for their services.

The shale gas plays are getting some environmental flack from a number of areas. The wells require so much water to complete and then how to reuse or dispose of in an acceptable way. The gas companies are not going to stop drilling, the question is how to address the concerns. ESPH may just hold the key, from an economic, PR and technical point. Exactly how you want to play the horizontal shale oil / gas plays that are going to be major player in the USA energy future, not only who will make money drilling but in support roles.

I've not seen any numbers on what ESPH offers in terms of economics on a typical well. For sure any of the drillers who were just dumping the waters local on the surface afterwards is not going to last. The Tree Huggers are going to have major issues, plus the property owners are going to get nervous. A responsible environmental solution is needed. Enough to maybe get drilling suspended in gross cases. Or a huge issue for future drill sites. Already a big fuss in places like NY. Technology like ESPH brings to bear could solve many problems, especially the people side of the it.

The major companies involved in shale drilling have run up too far in price to generate a lot of interest from me in buying their stocks, plus there is question about the ability to generate good growing net profit per unit of gas. We got a NG glut at present. Only the big boys are going to survive longer term IMHO. The better solution for investing was to look for supporting players to the drillers, hopefully one that everybody would need to use.

There is not enough compressor / pipeline capacity in many of the hot areas like the Marcellus in PA or down in some parts of TX. Didn't find any low cost good compressor rental companies or pipeline plays. ESPH completely fits the bill from this supporting angle. The supporting players might make more money than the drillers.

I am not wild about the share issue at 117 Million, would have liked less. But growth should trump all other concerns. Plus the other major factor is they can and should fit well into so many other market segments than just drilling.

The disaster support angle, maybe environmental clean up applications, potable water generation applications, etc. Any one of those applications would deserve a lot of attention on its own. Another major plus, not all the eggs in one basket in terms of markets potentially that can be targeted.

So right out the box, I think it is all about wild growth, market acceptance, defining a niche, building a name and letting the rest of it all catch up at some time in the future. Debt is not important from the right sources. Hey, it will even create jobs, maybe qualify for some type of government program along that line. Stranger things have happened.

Got one more sort of like this but I am still digging around on it, haven't nibbled on any of it yet.

[Cosmic]

That reference I gave before should answer most questions. I haven't dug thru everything available, tons of good, up to date info. Never find anything like quality info on a Pennystock. Somebody with good engineering skills likes this company and is able to communicate the key elements. They have made the effort of be complete and useful. Probably what drove the stock today.

http://wallstreetresources.net/pdf/f...-3-15-2010.pdf

The costs and even a comparison costs with the other methods of treatment are down on Page 31 of the report.

This company has to be a keeper. Just to many good things. If you have ever been around the water / pollution / waste stream treatment business in an industrial manner and the technology works, is relatively cheap and has no nasty side effects, you know what I mean.

I am buying until something stops me. Right now I see a big winner in the making.

[Cosmic]

The more you look at this company and the more you understand it, the more strange it becomes.

Here is a smaller start up company caught in a situation where they have way more potential business than they ever could hope to absorb with the present business model.

The chart just continues to trend up at a steady rate.


Investors Hub - Charts

They can take all the business in the gas drilling sector they want. In fact the horizontal gas drilling that is occurring in various shale deposits all over the country may be getting into trouble for a variety of reasons.

One is enviromental due to water usage, waste disposal and truck activity over small country type roads. Billions of dollars involved, money flowing from all over the World into activities, lots of pressure to continue at ever increasing rates of drilling.

ESPH is sort of sitting on a major choke point to much of those activities. The rub being they could never hope to be a major player or service the amount of business that should come their way.

Lots of angles to understand it. One is some of the local newspaper articles.

Oil and Gas Drilling Have Mixed Effects on Area - News, Sports, Jobs - The Intelligencer / Wheeling News-Register

Just using something like what ESPH offers will decrease truck traffic a lot, especially if water can be reused / recycled well to well. I've had a bunch of local input in terms of the economics of ESPH service versus some other method. Slam dunk ESPH is the winner. Like 75-50% range cost savings depending on what exactly is involved. It is not just the costs angle, also solves the waste disposal and truck traffic problem to something acceptable to most.

Sort of interesting to play a stock that never can hope to service the demand out there. The overview sezs something big has to happen in a very good way. Buy out or some type arrangement that allows massive rapid expansion of their capabilities.

Rumors are maybe some Russian technology sort of similar. Got to wonder how good the patent protection might be against a much bigger company offering similar service.

At this point it is just go for the ride and chuckle. Just don't find many like this. You get that feeling something has to pop big. Too many folks want the benefits of what ESPH technology holds, some of them should be willing to pay big to get it under their control.

[Cosmic]

Being driven by the situation. Big volume pushing price each day.

About like a tack being driven by a sledge hammer. Recent conference in TX. This puppy will probably be taken over in some manner before long. Impossible to guess where it will wind up. Higher for sure.

[Cosmic]

This lil fish is in a tank with big sharks. Big fish eat lil ones.

WSJ had an article on the stock. Lots of bigger players got to now be interested in acquiring the company by some means. I hear GE might be one of those. Lots of other potential candidates. Could it get into a bidding situation???

This puppy and all its potential has to be on a lot of radars. I'm looking for things to move a lot faster than normal. Some effort to rapidly increase the spread of the technology by some means. Money is lining up to be part of the action. Football player kicked in 10 million as direct investment. These things just don't happen to most small start operations.

[Cosmic]

This should have been a great stock.

Probably great technology. Should have been a sure winner.

Folks trying to run it are a bunch of weak sisters. Difficult to tell exactly what might be going on. But they apparently are trying to raise money thru mafia type loans, various stock dillution schemes. Might be in prime danger of losing control of the company daily operations. They themselves may be trying to sell out their own positions.

Saw it coming a bit back. Quit buying and then started to trim back the positions. Today I sold all of it. Just do not like the feeling, risk is too much, plus I had a decent profit.

Don't know how to judge it. Business model is a mess, should have worked with a reasonable degree of common sense. Getting involved with fringe players is it for me. Don't know if I will be back. Getting that bad feeling.

Not sorry to be out at this stage. If you are in it and have a profit, understand why you might want to stay. Risky in my book.