I previously wrote about Environmental Services Worldwide. To summarize the attributes that make it appropriate for a patient investor ...
very small share count, just 125,000 shares outstanding
very small market cap, less than $10M depending on bid / ask
strong balance sheet, about 1/3rd of the market cap is net cash
low valuation, less 1x EV / EBITDA
growing sales / EBITDA / margins
a real industrial business, manufacturing diesel particulate filters with verification from California Air Resources Board
shareholders and board dominated by sophisticated institutional investors from Apollo Group (the PE) and Apollo Investment Management (the BDC)
I don't want to overlook the real risk of dilution here; the company's outstanding debt plus recent subscription rights plan can convert to an additional 153,000 shares of stock valued at up to $80 / share when it comes due in 2018. This would essentially double the share count. But even assuming full dilution, and the resulting doubling of valuation, it still remains attractive. Furthermore, since the conversion price maxes out at $80 / share, buying below that aligns shareholders with debtholders interests.
Here are the company's quarterly financials, courtesy of FactSet: