EESO is a buy – Pick of the Year
April 13, 2009
Enzyme Environmental Solutions, Inc.
(Public, OTC:EESO) is a buy @ 0.0195
I am announcing that this will be my stock pick of the year. Colossal upside potential not only from its product, but also buyout opportunities!
About: Enzyme Environmental Solutions, Incorporated (EESI) produces an enzyme solution used in a variety of special purpose products. The Company manufactures the enzyme products solution based on its formulas. The primary markets for the Company’s products include retail, agricultural and industrial. The enzyme solution can be used to eliminate odor and organic matter, including blood stains to clean carpets and counter tops, remove wall paper, and as a cleaner/degreaser.
Product Potential: Click here to view an enormous database on this company and its profile.
Buyout Offers: Current offer of 0.10 PPS, which was declined by the CEO. “I feel the price offered, as written, undervalues the company and I’ll tell you why: We have achieved significant success in South Korea with our bacterial, garbage and odor remediation applications with our proprietary biotech. Within a week of our return we received a $12M order with other requests in negotiation. We have a lucrative, long-term agreement with our exclusive retail partner which currently supplies both licensing and manufacturing revenues that grow exponentially with our client’s distributor base. We are experiencing a new level of growth in terms of prospective client inquiries domestically, by companies large and small, for garbage and hog odor remediation as well as our water treatment solutions. Last but not least, I feel our share price, at current market value, is not reflective of the company’s actual value and, as we continue to progress, I believe it will correct itself accordingly along the way. EESO has much on the table which hasn’t even been released to the public including continued R&D on the company’s GC-2000, which converts auto-residue into fuel-oil. We’re learning quickly that the applications here are nearly limitless. Enzymes are powerful — plain and simple — and my proprietary blends and fermentation processes position us as one of the best green enzyme based cleaning product providers on the planet.”
More on the buyout: The buyer has stated that it will, within 30 days, respond with a counter-offer to Enzyme Environmental Solutions for its purchase with a price that should prove to be satisfactory for all involved. Hochstedler feels the prospective buyer understands his reasons for refusal of the offer as written and is looking forward to a counter-offer that will more closely reflect the company’s value and its potential as a whole.
Can you start to smell the scent of fresh bills in your wallet?
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April 13th, 2009 at 2:21 pm
Hey Michael
Have you ever owned stock through a buyout? I was just wondering what goes on when a buyout is finalized.
April 13th, 2009 at 2:30 pm
The buyout offer will indicate how much you get. The firm that is doing the buyout will make an offer that is generally a premium to where the stocks trade. So whatever the tender offer is, is what you get for you shares.
Is the buyout offer typically more, less or the same as the current stock price?
Typically more, but it comes down to what they negotiate.
Basically the company which will take over will purchase all of the shares at a higher price, however you still keep yours and they rise / decline based on the purchase amount.
April 13th, 2009 at 5:34 pm
Hi Michael,
I have been searching around the internet and doing my due diligence on this one for a little while now. I have come across more than one place that has called this company a ’scam’ and that the buyout offer is a fake. Is there any truth to this, or is there any other info that you have to confirm the legitimacy of this company?
Thanks.
Steven
April 13th, 2009 at 6:40 pm
Hello Steven, Just checkout the http://investorshub.advfn.com/boards/board.aspx?board_id=11755 forum and make your own assessment. This company def. looks legit and seems to have a bright future.
April 13th, 2009 at 7:46 pm
Ya thanks for the time Michael. I’ve seen investors hub as well and it seems like a great first source of info for most penny otc/pink stocks. And I also make this my pick of the year… heh although I’m not quite the analyst.
I have just also come across a quite a few forums who talk about this company being a scam. The first things usually mentioned are un-patented formula and unaudited financials… this for a company who states they are expecting over $100M in revenue this year.
Anyways, I was just wondering if you had any other information that made you swing this one as pick of the year. I like this one myself, but I guess everyone should do their own research before they invest their own money.
Thanks Michael
Steven
April 13th, 2009 at 8:36 pm
All I can say is, buy on speculation, sell on news.
April 13th, 2009 at 8:57 pm
Mike, I understand that the refused offer was $.10 based on very basic calculations I have come up with a valuation of about $.27 that is if the sales exceed the $130 mil the Hos’ stated. Is that a resonable assensment?
Cheers
April 13th, 2009 at 9:03 pm
@Chris, You mind sharing the calculations? Let’s take a look.
April 14th, 2009 at 12:21 am
ctic might be a strong buy tomorrow!!!
http://finance.yahoo.com/news/Cell-Therapeutics-Initiating-prnews-14916299.html
April 14th, 2009 at 8:32 am
You didn’t really answer the buyout question clearly ( for me anyway). Let says they had sold out and took the buyout offer of ten cents/share. Am I, the shareholder, contacted in some way to sell them my shares at that price? Does it go thru my brokerage house? And what if I just decide to hang onto them? Run me thru the process.
THX P. Jones
April 14th, 2009 at 10:38 am
@Patrick, Your brokerage deals with it, similar to you shorting shares. You are not contacted by anyone, simply the value of your shares rises. Ex/ The people holding DNDN overnight gained 220% if they had sold today based on the gain per share.
April 16th, 2009 at 1:28 am
Hi Michael
a beginner here. I don’t understand how the price is not getting up while they get the overtaken news, can you explain this
thxs
April 16th, 2009 at 1:34 am
@Frank
Could be a couple of reasons:
1) Demand is not exceeding Supply just yet because the Takeover news is nothing new (if you’ve invested in OTC / Pinks before) to regular investors. Unless it becomes official and we see SEC filings, speculation can only go so far.
2) Share dilution. It is unclear as to how many Shares Outstanding are currently floating in the market, so if the number is very large (Close to the billions — companies do this for finance purposes) then it becomes very difficult to influence PPS.
3) Insider buying — alot of times companies and executives will buy back it’s own shares in order to reduce count (see point #2) or to pay off salaries in shares rather than liquid cash.
April 16th, 2009 at 9:36 am
So then what do you think is in the immediate future for EESO?
April 16th, 2009 at 2:17 pm
I’m in the carpet cleaning business….all enzymatic products, which we use to break down various pet residues, restuarant oil/grease build up, are very expensive for us to purchase so I know someone is making money…hopefully the product manufacturer. MY point is this product positively interfaces with all organic residues which may be offensive to the general public. Some enzymes work better then others, as such, this company may or may not remain in the mainstream. The world of enzymantic environmental chemical action is here to stay, and is continuing to improve….this may very well be the pick of the year. I would expect a company like Monsanto,ADM, Con Agra, Dow Chemical etc…to find this company an asset to thier various parent company product lines. MO
April 21st, 2009 at 2:02 pm
I see you tout yourself as an investment analyst. Why does the market call this a scam day after day? The price is .017 with a buyout offer of .10
This is clearly a ploy by the company for someone to dump shares, so obvious it is not even funny. I fail to see how you see this one as anymore than a bad joke?
April 21st, 2009 at 7:46 pm
@Jay, Penny stocks have always been valued based on their potential, and quite frankly if you look at this company’s track record it really is quite impressive. Moreover if you check the massive investorshub.com database with information on their current and future plans, you will realize and validate their claims. They have held numerous conferences to answer inquiries by investors, as well as plenty of pictures to verify the claims.
When it comes to up and coming companies, all you really can do is speculate and hope for the best, and to me this company has the most upside (given the buyout goes through)
Other valuable picks are: SPNG, and CTIC
April 21st, 2009 at 11:32 pm
Michael,
Do you think this company would go lower than .017 do is there any lower resistance point? Around what day do you think we should see the counteroffer?
April 21st, 2009 at 11:51 pm
@ Mixael, resistance is def. around 0.020, if we can break that then we shoot up to the next level which should be in the late 30s, to early 40s. As far as the counteroffer, it should be anytime within the next 2 weeks.
April 26th, 2009 at 6:48 am
EESO is one of my favorite stocks as well. I got in at .0009, i only put $180 into it, but it was enough for me to make $2000 off of it withen a couple weeks. I sold it at .025. Just after it went down from .04. Good stock for me so far. I’m thinking about getting back into it with all the good news and the buyout.
April 27th, 2009 at 5:36 pm
youre my homie. i’m in tomorrow. thanks for mesa today
April 27th, 2009 at 8:06 pm
Do you typically put a stop loss on the stocks that you pick or do you just let them float? Would you suggest putting a stop loss on EESO?
April 28th, 2009 at 10:08 pm
Stop Losses are the stupidest thing to do in penny stocks / speculative plays. See DNDN incident. Losing 50% for absolutely nothing, no thanks.
Tip — get a Blackberry or iPhone and do your trading on the go if you can’t follow it closely on our laptop at all times.
April 29th, 2009 at 1:14 pm
WHAT is happening to this stock? Yer best guess.
May 3rd, 2009 at 9:24 pm
Michael, would you recommend to sell after the offer is made, if its made, or hold on beyond that?
May 4th, 2009 at 9:19 am
@Patrick, yes sell after offer is made, and only invest what you are willing to lose. That is how speculative stocks are played.
May 4th, 2009 at 11:36 am
Thank you
May 7th, 2009 at 1:03 pm
If the buy out does happen oh man I would be god damnn happpy!
May 7th, 2009 at 1:41 pm
@Arfan, you and me both
May 9th, 2009 at 6:11 pm
Mike: what are your plans for the buyout; are you putting in a sell limit? If so, what do you suggest for the price? If you aren’t using a sell limit, what are you doing? I bought in at .017, any advice? I figure the activity on the stock will fluctuate a lot with the buy out news.
May 10th, 2009 at 12:40 am
@Oswald, I willd hold up until the buyout afterwards I expect a huge sell-off to come rather quickly. Be prepared.
May 10th, 2009 at 10:22 am
Is it still a good entry point @ .18?? or is it best to hold off untill after the buyout?
May 10th, 2009 at 10:29 am
@Mario, there is no point waiting after the buyout because that is when a huge sell-off will happen. Put a small amount of your overall portfolio and forget about it until you hear more news on the buyout.
May 11th, 2009 at 5:14 pm
Is there any reason we haven’t heard anything yet??
May 11th, 2009 at 5:18 pm
@Luke, unfortunately I’ve been allocating all of my time and DD to my latest BioPharma picks. I have kind of left this one to sit in my portfolio until something happens.
May 19th, 2009 at 9:13 am
Michael,
Confidence in this stock seems to be declining rapidly. Has your view changed or do you remain optimistic?
PJ
May 20th, 2009 at 9:53 am
I read somewhere that it looks like the board is going to meet the first week of June to talk about the two buy-out offers and the following statement from Jared CEO, makes this look interesting also:
“”The counter-offer is a cash and stock offer that is considerably more attractive than the group’s first offer to us. This is a very positive step for EESO and its shareholders. I firmly believe that we have entered into a new stage of growth at Enzyme Environmental and we are not turning their counter-offer down, but we have requested more time on our decision…”
May 28th, 2009 at 4:34 pm
Michael, Where’d you go?
May 28th, 2009 at 4:40 pm
@Patrick, I am def. not as optimistic as I once was. OTC Stocks seem to fool around a lot when it comes to PR reports (see PGYC), now I’m not saying that EESO is following this trend but I have decreased my position in them.
May 29th, 2009 at 10:41 am
Yikes, that doesn’t make me feel good. I bought a ton of it at 2 cents now I’m reluctant to sell it at a 50% loss. And thank you for your honest opinion.
May 29th, 2009 at 2:20 pm
So far so fail…
Pick of the year.
May 29th, 2009 at 2:30 pm
@Cru, based on the DD anyone would have seen this as a diamond in the rough. Sometimes you fail, thats among the beauties of the game — you can only do so much as an investor.
May 29th, 2009 at 5:11 pm
I’m not going to give up on it yet. I still think they have real growth potential however I’m not thrilled about the vague, grade school level PR’s. If I had to guess, I’d say this drop in price is intentional just like the quality of the PR’s, why, I’m not sure yet. Maybe to get people to give up their shares.
Is it true there is now 3 billion shares, up from 2 and what does that really mean for the company and the investor?
May 31st, 2009 at 4:26 pm
Patrick, ther are a ton of rumors out there about EESO, one thing for I can say though there is no evidence thus far to show thay have raised the A/S, there is a confirmed bid of $.10 which Han Bool are seemingly publishing (in Business Week) that this is a done deal pending due dilligence, which is conflicting to the statement made by the CEO that this offer has been rejected.
We can only hope that the offer for cash and stock is more than $.051 in cash so that no investors get hurt in this deal.
The CEO is acting very strange, which has been said by the execs for this company too, lots going on behind closed doors, maybe some bugging is needed !.
Certainly JH has a great deal to answer for, even the most stauch supporters are becoming angry.
If this is a scam then there will be torches and pitch forks in Ft Wayne looking for JH, I for one will be there too.
May 31st, 2009 at 8:42 pm
Chris, I just don’t know what to think anymore and thx for your thoughts.
June 1st, 2009 at 3:31 pm
Yea, this is such a terrible stock. The only thing keeping it above a penny were the bs PRs. Would you suggest dumping, Michael? I have lost 66% of my initial investment..
June 1st, 2009 at 3:34 pm
@Jim, honestly… this is starting to look like another PGYC (for our sakes lets hope not). I only hold a very insignificant percentage of my overall portfolio now in EESO. This looked stellar at the beginning of the year, however slowly yet surely has declined in favourability.
June 2nd, 2009 at 7:57 pm
Michael, Is this it? Is this the end of eeso?
June 3rd, 2009 at 2:57 pm
This is the end of EESO. Jared is a scamartist. I threw a lot of money away because of his antics. What goes around comes around punk!
June 3rd, 2009 at 3:04 pm
What is going on with eeso? Keeps going down and down and down….with no news….what is going on? What causes this to happen? Who is selling?
June 3rd, 2009 at 8:37 pm
Looks like everyone due to lack of confidence. 220M Wow.
June 7th, 2009 at 2:57 am
i’m holding it till 0.40
June 7th, 2009 at 12:43 pm
You really think that’ll happen?
June 11th, 2009 at 9:10 am
Holding a fair amount of shares – but overall minimal investment. Based on the way it has been moving – I don’t even want to average down . . . good money after bad. Do we see this guy coming back over .01 any time this summer?
June 12th, 2009 at 12:42 pm
Michael, Where’d you go buddy? Can you recommend a book on penny stock trading for someone fairly new to this? Hava good weekend.
June 12th, 2009 at 12:47 pm
@Patrick, been a little busy as of late. No books — just trial and error, learning from experience.
June 30th, 2009 at 6:24 pm
Michael, Whats yer accessment of EESO now?
July 8th, 2009 at 8:01 pm
Michael, Have you given up? You have not posted in a month.
July 8th, 2009 at 10:55 pm
@Patrick, I haven’t had a position in EESO for a while now, do not believe in the CEO at all.
September 3rd, 2009 at 11:23 am
the stock has continually tanked since your original buy call. the buyout offer seems to have been a fabrication, as not a scintilla of evidence has ever been made available to verify it. with 5 BILLION
September 3rd, 2009 at 11:26 am
the stock has continually tanked since your original buy call. the buyout offer seems to have been a fabrication, as not a scintilla of evidence has ever been made available to verify it. with 5 BILLION SHARES now available (3 Billion distributed) it appears to be a scam and i would love to see the insider trading on this stock over the last 6 mos. sorry for the duplicate, page kept flipping.
September 11th, 2009 at 11:02 pm
eeso has real product in the market. i have used it. it works
September 16th, 2009 at 10:50 pm
Excellent pick. I can see how you would pick that stock. It sounds like a green stock which are very popular. I personally prefer biotech stocks, which is why my pick is Mentor Capital (MNTR). They are not a biotech company, but they have a 20% interest in one and that is expected to increase as they are the primary funding source a company working on FDA clinical trials for a phenomenal new breast cancer treatment that sensitizes dendritic cells to expose proteins found only on cancer cells so the immune system can fight the disease more efficiently. Successful completion of the trials could lead to price gains in Mentor Capital stock due to their merger.
October 6th, 2009 at 1:17 pm
Did anyone see this news item:
http://www.wane.com/dpp/news/local_wane_fw_Company_faces_stock_fraud_allegations_200909259