Broker Data - LWP, page-165

Doubt it.

Ceramic proppants are on the out and a lot of companies involved in fracking are now refusing to construct ceramic wells. The only alternatives are sand based proppants or something else. This company is offering an alternative.

Even though the technology has not been field tested, initial independent (lab) testing indicated that the fly-ashed based proppant exhibits excellent properties.

"The tests, which were conducted by US based Global Energy Laboratories, confirmed an exceptionally high pressure threshold for the LWP Technologies’ proppants."

And...

"A comparison against some of the major proppants on the market in the US shows our proppant is able to withstand significantly higher pressures with very low powderization rates which makes them very attractive for deep unconventional wells where the pressures are greatest"

If this if further supported in a test well, then an indicative market cap for this guy after some revenue generating deals might be closer to other proppant manufacturers:

Emerge Energy Services - 424M
Hi-Crush Partners - 600M
Carbo Ceramics - 809M
U.S. Silica - 1.38B

I'd take a guess that the current market cap between 35-50M is not unreasonable for a fracking start up with a promising technology, pilot plant and one JV. Perhaps you may want to perform your own testing on their fly-ash based proppant to refute these claims before suggesting that it is overpriced. Of course, we are all entitled to our own opinions, even if they are slightly uneducated.