roboklerk, I disagree with your comment that 'any work being awarded by the government is "gravy"'. In reality government work is their bread and butter. 84% of 2011 revenues was the federal government.
And I'm not so sure that SEHC was 'a steal'. Read through the 10-K and cruch the #'s. Looks like SEHC was in a tailspin at the time of its acquisition. Still a very risky deal for PESI - could go either way.
guess I should have said any Incremental work being awarded by the government is gravy IMO. Did not expect a big project like this near a half billion dollars coming up for bid and right in PESI's wheelhouse.
As for SEH, they got it without share dilution (except for a few shares purchased by the former head of SEH as I recall to keep him motivated in the combined entity). The interest on the debt used to acquire it has to be maybe $1 million annually or less. I am just figuring they can at least run that business at breakeven and wring out over $ 1 million annually in redundant costs between the two entities w/a combined revenue of at least $160 million. We will see. At $1.50 per share I view PESI as no worse than a call stock option w/o expiration. It goes as a given that priced at $1.50 there is risk involved. I like managements that make bold moves, but this is a small part of an otherwise well-diversified portfolio.