West Moutain Capital (WMT.v) – bottom fishing opportunity?

[Tara]

West Moutain Capital (WMT.v)
Mr. Paul Antle, President and CEO, Tel: 709 726 0336
Email: pantle@phaseparation.com
Web: http://www.phaseparation.com


About Phase Separation Solutions:
PS2 is an established Canadian environmental solutions company specializing in the thermal treatment of a variety of hazardous and non-hazardous waste streams. It employs a unique indirectly heated, closed loop technology that allows it to extract even the most hazardous contaminants from soil, industrial sludge and waste converting much of it into reusable oil and synthetic natural gas that it uses to sustain the process. This methodology offers significant opportunity for greenhouse gas reduction over traditional hazardous waste destruction technologies. PS2’s management team maintains expertise in hazardous waste management and contaminated site remediation with experience spanning North America and internationally throughout 14 countries.



The pros

- recently profitable, Q2 EPS= +.02$/share (+639k)
- Book value = 3.09M$ (0.09$/share - No goodwill and intangibles)
- Current Market cap about 2M$(sept. 9th 2009)
- Gross margin close to 50%
- Working cap = +331k
- No long term debt 
- 34.7M shares outstanding; Insider ownership about 70% (excluding family and friends)
- Reasonable salary structure
- No lawsuits that I am aware of


The cons

- No recent insider transaction due to very high insider stake



What makes this company interesting in my opinion?

The company recently signed a contract worth close to 7M$, as it tries to take advantage of Environment Canada new PCB regulations. This regulatory change is expected to increase utilization of the Wolseley facility between 2009 and 2011. Also, an Ontario remediation project is expected to generate income over the next 3 quarters. Subsequent to quarter end, the company obtained a license expansion to include China. With current backlog, trading under book value and at attractive PE levels with solid gross margin, the stock seems undervalued using common accounting metrics.


P.S. The above is simply my personal understanding and not to be construed as investment advice. I’m not a broker, promoter, director, manager or employee of the aforementioned company, just a shareholder. Do your own due diligence. Typos could of occurred.

[alhigou]

Technically, WMT.V has been showing support around $0.04 and resistance inthe $0.11 range.

[Conor]

hello everyone, I'm a new visitor here, and am very much still in the "read and learn" stage of things! So far, I've found this site to be very good reading, full of valuable information.  Its nice to read from folks "on the front lines" or just everyday investors, as opposed to most of the "hype" found online...

I'm just curious, looking at the performance of West Mountain recently, if this would be considered at its peak (too late for investment) or something that is still a viable position at $0.20 a share? 

Not that I'm considering actually doing anything...     just to better understand this type of choice.

Thanks,
Conor

[Conor]

Thanks Tara,
thats pretty much what I thought - but its good to know that was the correct assumption.

I'll check out NTG clarity as well, of course.