There is a lot to like about ESS and I finally picked some up...

There is a lot to like about ESS and I finally picked some up yesterday and this morning prior to the FY10 announcement. They've got an NTA above 30 cents and holding around $6m in cash. The market cap is $11m and I'm sure the business is worth more than $5m. The restructure in the past 12 months and the massive reduction in revenue smashed ESS, but one thing to like about this whole scenario was management's quick response to the issues at hand.

As for a catalyst, it will all hinge on whether revenue has increased and if the forecast for FY11 is strong, which I think is highly likley.

As for Ammtec, (they are currently under takeover from CPB) they have advised the market that their specialised mining business they purchased for $10m (Marc) is having some good sales outcomes and will turbo-charge their sales into FY11. Now, there are a few cross-overs between the two businesses ie. dust supression equipment, but lets just hope this is the start of the turnaround for ESS.

Pep