Thanks Brabus,Appreciate you following my trading.In my mind...

Thanks Brabus,

Appreciate you following my trading.

In my mind there are 3 things that have held ESI back to date:

1. Management have made incredibly poor decisions on the funding front, thus making their job very difficult to make the share price appreciate.

2. The ownership of the IP has been an issue and has failed to attract Z BIG FISH investor into the company.

3. The incredible overhang of the original holders from 1c has also been an incredible -ve for the company.

So here is what attracts me to the stock now and why I believe the current strategy will be a success.

1. The SPP will give each holder the opportunity to buy stock at exactly same level as the placement taker. Also diluting the larger unwanted holders.

2. Part of the SPP raising is aimed at securing the IP (i believe, reading between the lines on the last ann). thus addressing ownership issues.

3. The overhang has effectively been removed with only 26 mil shares being held in the top holders hands (that's only $500,000 k at these levels). In saying that I believe he is a seller but will want more that 2c for his stock.


Now in responce to the SPP and whether the price will hold at 2c or above.

This may sound a little blaze, but from my point of view it is totally irrelevant. I am focussed in getting as much of the SPP as I can as the option pkg offered with it, will more than cover any stock declines.

If the offer is the same as the placement, your options alone will cover the cost of the stock day 1, I believe.

This is just the mathematics on the stock.

Now for the most important thing from where I sit. This stock is exactly in the right place at the right time to make a killing. Clean coal and water as a by product is where the focus is and what every 1 wants right now. To find this company needing cash right now because of global meltdown is great for us small holders as I believe we wouldn't get a look in if times were different.

So here is the summary of my investment strategy: RISK vs REWARD.


My down side risk is 2c from these levels, my upside if they get this away and get the job done is at least 10 times that.

Hence my NO BRAINER comments before, but please do your own research as I am purely a punter same as you guys and only use my logic to time the trades and make money.