Monday, July 20, 2009

Energy Services of America Corp. (ESA) Finds Itself Well Positioned to Capitalize on the Infrastructure Play

Being in the right place at the right time is the name of the game when it comes to investing. Understanding where the market is and where it will be is the key. When it comes to infrastructure the game tends to move along at a rather slow pace and then explode all at once. If an investor can see where the infrastructure play will happen, they can be well positioned when it does happen. In the infrastructure world, patience is the real need. If infrastructure is an area that seems appealing, buy in and wait.

Energy Services of America Corp., an energy services company, works to test electrical systems for utilities and industry while also offering construction and site services from initial site work to reconstruction and installation of water/sewer systems and electric power utility raceways. The company has recently exited winter related slowdowns and effects of the current economic situation. The company works primarily with utility companies in and around the southeast United State but also with municipalities and other industrial concerns around the country.

While the company did experience a reduced revenue scenario in the first quarter of 2009, it has been posting solid profitable returns in preceding quarters. In most respects, the first quarter’s results were almost expected, given winter slowdowns, as is a return to solid revenue targets for the remainder of the construction season. Booked work for the remainder of the year has begun and additional scheduled projects that received go ahead status resume in the near term.

The general nature of the company’s activities point to a solid future. Energy requirements for cleaner, more efficient energy systems are all too apparent as energy requirements are addressed. The fact the current president of the United States is a full partner in the updating and expansion of the country’s energy system is also a nice little indicator of the potential revenue. Although the company tends to work in the natural gas delivery construction area most often, it does operate across all energy systems. These areas include: natural gas storage facility construction, installation and repair of water and gas systems, pump station construction, substation and switchyard services, dry and oil-filled transformer installations and data communications installations. Generally speaking, the company is involved with putting infrastructure in place and maintaining it.

Energy Services of America Corp. is currently in a unique position. It has established itself as a company that can put in place and maintain an infrastructure that will constitute the bulk of the United States energy needs well into the future. As capital and funding begins to find its way to these needed areas, it will find itself well positioned to capitalize.

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