Espial Group Inc ESPAF

There is Never 100% Agreement on any Company

[James44]

I’ve searched the internet and spoken to some friends in the investment world and it appears that most projections are quite positive for ESP (especially from these prices).  The investment community has simply lost patience waiting for positive results.  It seems that only a major new client, or a quarter or 2 with positive results (which we should see in Q3 and Q4) will really get the share price moving up to where it should be.  The most negative analyst at the moment is David Kwan from PI Financial.  He is advising a hold on Espial shares with a one year target of $1.55.  His reasoning is that SaaS sales have slowed and that the market is highly competitive.   He also says that Espial’s biggest client in Europe has had some issues with rolling out Espial’s technology.  He suggests that this may negatively affect espial’s ability to generate future revenue with this company.

However, to me, the recent announcements (TDS and WOW) prove that companies are in fact happy with the quality and value that Espial’s services offer.  WOW (Wide Open West) was a company that was using Arris’ services when Espial acquired Arris.  So, they were already a client, but this new contract will give much more revenue from them, will be recurring, and has the potential to grow as more customers sign on.  

To me, it is clear that ESP is currently trading at an exceptional bargain...One rarely seen in my years of following small cap businesses.  That being said, it does me no good if there is not enough interest on the buying side.  I’m hopeful that share holders can wait out this painful time until at least February , when Q4 earnings are released.  I strongly believe that we will be on a much sunnier course by then.  

Good luck everyone!