Email : info@otcjournal.com
URL : http://www.otcjournal.com
To
OTC Journal Members:
 |
Astralis/Hercules
Development (OTC BB: ASTR) |
 |
For those who didn't catch the news,
yesterday Astralis/Hercules Development announced the completion of the
merger. Therefore, Hercules Development Group has ceased to exist, and
the stock symbol has now changed from HDVG to ASTR or ASTR.OB
if
you get your quotes from Yahoo!. If you are a shareholder you now own shares
of Astralis, ticker symbol ASTR.
The completion of the merger eliminates
one of the risk factors associated with the stock, and opens the door for
the company to move forward. More in future editions.
 |
Energy Power Systems (OTC BB: EYPSF) Releases
Audited Year End Financial Results- Roller Coaster Ride Continues
|
|
As we anticipated in our weekend
edition, Energy Power Systems hit our target price on Monday, and
then continued higher to challenge the $6 level on Tuesday, trading to
a high of $5.99.
Volume in this stock has been far
beyond our expectations. Price appreciation has kept pace with corporate
developments. The stock has risen to higher levels along with the company
announcing new drilling and exploration programs.
The prolific volume in this stock
has attracted the attention of institutional short sellers, and yesterday
at about 2:00 PM Eastern Time, short sellers launched a cyber smear campaign
on the company, and initiated one of the most flawlessly executed bear
raids on a stock we have ever seen. Congratulations to the short sellers,
it was impressive to watch.
There was a news release on Energy
Power yesterday at about 2:00 announcing an obscure web site had published
a report bashing the stock with rumor and innuendo, but no facts. Within
seconds of the release the stock started dropping like a rock. Short
sellers savagely attacked the stock, providing the appearance that the
market was taking this smear campaign seriously. This is a psychological
game that these people have mastered.
The press release was published illegally,
and the wire services have since removed it. Later in the day, Energy
Power released its 2001 year end audited financial results (end of
June).
As measured from the end of June
2000 to the end of June 2001, Energy Power's revenues grew from
$18.9 million(cdn) to $19.2 million(cdn), in line with expectations. However,
EBITDA profits surged from a loss of $.2 million (cdn) to a gain of $.3
million (cdn).
The company also took $1.5 million
(cdn) in non-cash write downs of assets, thereby giving the appearance
the company lost money. In fact, the company earned about $.5 (cdn) million
in positive cash flow for the year. The turn around was attributed to the
first revenues from the newly formed Oil and Gas Division, which began
operations on February 1st 2001.
September quarterly numbers are expected
to be released later this week, and we are anticipating further evidence
of improving cash flows.
|
What
To Do From Here |
|
Now that the 2001 audit has been
released the company will continue to pursue its application for listing
on the American Stock Exchange. If successful, we believe the stock will
trade in a more orderly fashion.
The stock has a history of trading
up in exciting high volume spikes as depicted in the chart. Tuesday's
high volume run to $5.99 was the fifth surge of this kind since February,
and we fully expect this pattern to continue. Each surge has taken the
stock to a new high.
We believe this pull back represents
an outstanding buying opportunity compliments of the short sellers. For
members who don't own the stock, or took capital off the table early in
the week, this is a welcome and unexpected chance to get back on this speeding
train.
The June financial results were a
snapshot of past performance, but stocks generally trade on perceptions
of the future. Energy Power is currently drilling on new sites in
Ontario and Alberta. New contracts for the Engineering and Offshore Division
could materialize out of the multi billion dollar White Rose project.
We expect financial performance
to improve much more dramatically in the first half of calendar 2002 as
cash flow impact from drilling programs and existing producing wells is
reflected in the Income Statement. A major discovery is always
possible, and represents the dramatic upside in owning the stock. In the
meantime, the consistent cash flow from the 30 year old Engineering and
Offshore Division provides financial stability and minimizes your downside
risk.
We also expect the Cyber Smear campaign
to continue. It is estimated the public float on Energy Power is about
4 million shares. With the stock trading over 1.5 million shares everyday,
the entire float is changing hands every two or three days, which is impossible.
Short Sellers were extremely aggressive yesterday, and therefore have a
strong vested interest in driving the price down to frighten you into selling
them your shares at much lower levels. However, some day they will have
to buy these shares back, which could drive the price higher.
If the cyber smear campaign concerns
you, sell the stock and get out. You don't have the stomach for the dirty
tricks in this end of the market, and this is not for you.
However, if you look at support levels
for the stock as depicted in our chart, the stock is now a buy, and should
be sold on high volume surges to the upside.
This story continues to get more
interesting all the time. The price is like the weather in Montana, if
you don't like it, wait a day. It's going to change.
Here is the complete text of the
news release for your review:
Tuesday November 13, 8:34 pm Eastern
Time
Press Release
SOURCE: Energy Power Systems Limited
Energy Power Systems Limited -
Announcement
TORONTO--(BUSINESS WIRE)--Nov. 13,
2001--Energy Power Systems Limited (OTCBB: EYPSF - news; www.epsx.com;
``Energy Power'' or the ``Company'') announces that it has issued audited
consolidated financial statements for the year ended June 30, 2001. These
statements reflect the following activities of Energy Power and it's subsidiaries
operating as an Engineering & Offshore Division and an Oil & Gas
Division:
-
consolidated revenues of $19.2 million
for the year ended June 30, 2001 ($18.9 million -2000);
-
consolidated gross profits of $2.5 million
for the year ended June 30, 2001 ($3.8 - 2000);
-
consolidated EBITDA of $0.2 million
for the year ended June 30, 2001 ($0.3 million negative EBITDA -2000);
-
consolidated loss from continuing operations
of $1 million for the year ended June 30, 2001. Profit from continuing
operations would have been $0.5 million before a non-cash charge of $1.5
million. ($1.4 million - 2000);
-
and consolidated basic and fully diluted
loss per share from continuing operations of $0.23 ($0.46 per share - 2000).
Energy Power's consolidated revenues
of $19.2 million for the year ending June 30, 2001 increased by 1% from
$18.9 million reported during the same period the previous year. Increased
activity from the Company's Engineering and Offshore Division and new sources
of revenue from the Company's Oil and Gas Division, which commenced February
1, 2001, contributed to this revenue growth.
Consolidated EBITDA of $0.2 million
for the twelve-month period ending June 30, 2001 was substantially higher
against a consolidated EBITDA loss of $0.3 million reported for the previous
twelve month period, a swing of $0.5 million. The consolidated EBITDA increase
was largely due to the benefits of a corporate restructuring initiated
at the end of fiscal 2000 as well as the additional cash flow from the
introduction of the Oil and Gas Division. ``It was our corporate objective
at the end of last year to turn the Company cash flow positive this fiscal
year,'' stated Scott Hargreaves CFO, ``to achieve this we eliminated two
non-core subsidiaries and created the Oil & Gas Division. We are most
pleased with the positive trending improvement in cash flow as EBITDA increased
$0.5 million for the twelve month period ending June 30, 2001.''
Consolidated loss from continuing
operations for the twelve month period ending June 30, 2001 was $1.0 million,
29% less than the loss from continuing operations reported for the previous
twelve month period. Profit from continuing operations would have been
$0.5 million before a non-cash charge of $1.5 million.
The Engineering and Offshore Division
is currently working on a backlog of contracts to carry over the next fiscal
year and beyond. Further development of Atlantic Canada's offshore infrastructure
could feed further growth for the Engineering and Offshore Division. In
addition the Oil and Gas Division is adding positive cash flow to fund
corporate operations and future development and growth strategies. At present
the Company is expanding its exploration, drilling and development program
to increase oil & gas reserves and production.
About Energy Power Systems Limited
Energy Power is an integrated energy
source and service company operating as an Oil & Gas Division and an
Engineering and Offshore Division.
The Company had approximately 7.3
million shares of common stock issued and outstanding at the week ending
November 10, 2001.
For further information
contact:
Scott T. Hargreaves,
CA, CFA
Chief Financial
Officer
Telephone: (416)
861-1484
Certain of the statements contained
in this news release are forward-looking statements. While these statements
reflect the Corporation's current beliefs, they are subject to uncertainties
and risks that could cause actual results to differ materially. These factors
include, but are not limited to, the demand for the Corporation's products
and services, economic and competitive conditions, access to debt or equity
capital on favorable terms, and other risks detailed in the Corporation's
Form 20-F and Annual Report.
--------------------------------------------------------------------------------
Contact:
Energy
Power Systems Limited
Scott T.
Hargreaves, CA, CFA, 416/861-1484
|
Charts Provided Courtesy
Of TradePortal.com
The OTC Journal is
a proud partner of the SwingWire.com
Online Investment Community. A next generation Online Analyst Exchange
providing Members the ability to search, review, track and monitor some
of the Internet's best Online CAs (CyberAnalysts). Members
have the opportunity to potentially achieve higher
returns by viewing top performing portfolios
and receiving real-time alerts from favorite CAs.
SwingWire.com
also has a lucrative incentive model for experienced investors and traders
who consistently outperform the market. Share market ideas with other like-minded
investors, establish a proven track record, provide insightful commentary,
attract followers and ultimately become one of the Internet's highest paid
and most sought after CyberAnalysts!
Click
here to receive your FREE 30-Day Trial Membership with no further obligation.
Sign Up Today!
|
