RE:P/e = 3x Yeah, they made eight cents per share the year before. That is a PE of 1. However, there are some major problems here;
1. They have far more debt and debentures outstanding than any total of all their assets with a negative shareholder equity. Better than it was after most of the debentures converted a little while ago. (@ $0.30 too) Plus, they have had definite recent good earnings with increased sales.
2. Selling CBM pumps with basically one customer. 90% of sales with this ONE customer is way to concentrated and very dangerous. Yes, they are trying to diversify but they don't have the ability currently to do so for many reasons.
3. Natural gas prices. At these levels, their one customer may pull back and that could put a monkey wrench in everything. It might even KILL them. Keep your eye on gas prices. Exercise extreme CAUTION.
They have good management and are trying for a come back but it could be out of their control with macro events happening. Also, costs are higher because of Calgary managers with USA operations. What they need is more capital, a merger with exposure to a larger customer base and to serve a bigger geographical area in the CBM field. If gas prices go back up and they could achieve ALL these goals, it could be a big potential winner. However, that is a lot of IFS and sometime timing is not on their side. Somewhat of a risky gamble in my opinion.
All my own facts and opinions here, which I believe are all correct.
Angles