1) $600 MM OF NATURAL GAS RESERVES: Yesterday USEY announced the aquisition of 60 MILLION MCF of gas reserves. Assuming $10 per MCF, these reserves have $600 MM MARKET VALUE.
2) EARNINGS: USEY earned $.30 per share in 2004 before one time writeoffs.
3) PENDING SALE OF SUBSIDIARY WILL LEAVE USEY DEBT FREE WITH $2.50 PER SHARE CASH: USEY is in the process of disposing of its subsidiary USEB to a Canadian Energy fund, Countryside. COUNTRYSIDE WILL ASSUME $85 DEBT AS PART OF THE SALE. When the sale is completed, USEY WILL HAVE CASH OF $30 MILLION PLUS and NO debt, this alone should raise share price to $5+
4) SECTOR DISCOUNT: USEY is a Independent Power Producer (IPP) with interests in green electric generation projects in the U.S. USEY is trading at a FRACTION of the market caps of other IPP's: CPN: $4.3 Billion DYN: $1.8 Billion RRI: $10.6 Billion USEY: $15 million
5) SECTOR: USEY is a laggard in the hottest sectors over the last year, energy (especially renewable energy AND alternative energy).
6) 6 MILLION SHARE FLOAT: USEY has only 12 Million shares outstanding and around a 6 MM float. I(between the Schneider’s, Cinergy, former Zapco-owners, USEY Corporate executives and what is in the USEY Treasury, 40-50 percent of all outstanding shares are insider owned. This would leave a float of between 7.1 and 5.9 million shares).
7) Natural gas and electricity prices are at RECORD highs and the state of Texas just reported RECORD electricity demand.
8) Seasonality: November and December are BEST small cap months.
9) USEY all time high of $8 was reached in 2001 when natural gas and electricity prices were MUCH LOWER than thay are currently.
10) USEY is BEST BUY ON NASDAQ!
Here is summary of USEY business: U. S. Energy Biogas Corp. U. S. Energy Biogas Corp., based in Avon, Connecticut, owns and operates 26 landfill gas-to-energy (LFG) projects and a combined heat and power facility. U. S. Energy Biogas Corp. has 60MW of generating capacity. Power is sold primarily to local utilities under long-term contracts in Arizona, Illinois, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Texas, Vermont and Virginia.
U. S. Energy Biogas Corp. is one of the largest developers and operators of landfill gas collection systems and alternative energy projects in the United States. The company has additional LFG projects under development.
U. S. Energy Biogas Corp. has been recognized for its efforts to reduce air emissions by the Environmental Protection Agency (EPA), the Department of Energy, the Solid Waste Association of North America and the Landfill Methane Outreach Program (a division of the EPA).
Posts: 714 | From: Boston, MA USA | Registered: Aug 2004
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