Georgi Kamburov

Strategic Environmental & Energy Res Inc (OTCMKTS:SENR) Shoots Up

by Georgi Kamburov July 13, 2016

During yesterday's session investors shifted half a million of Strategic Environmental & Energy Res Inc (OTCMKTS:SENR, SENR message board)'s shares. For a company that barely sees any trading at all and has a monthly average of a little over 18 thousand shares the increase in volume was staggering. In fact, this is the biggest daily trade volume registered by SENR for over a year and a half. The heightened buying pushed the stock nearly 15.4% up the chart to a close at 75 cents per share.

No matter how positive the outcome of the session may have been investors shouldn't ignore the fact that there is nothing immediately obvious that could explain it. SENR haven't issued a new PR in months while the latest SEC filing that came on June 1 was about the decision of the Executive Vice President of the company to resign in order to "pursue personal aspirations and focus on family".

The continued lack of interest towards SENR doesn't mean that the company is in a terrible state. On the contrary, it appears that SENR, unlike a considerable amount of the other pennystock ventures, is not only a real company with real operations but it is also reporting some rather impressive results. The quarterly report covering the first three months of the year contained the following financials:

• $662 thousand cash
• $3.07 million total current assets
• $6.8 million total current liabilities
• $3.5 million total revenue
• $46,800 net income

As we said, there aren’t that many pennystock companies that can generate over $3 million in revenues in just a quarter. Not to mention that although the net income of around $47 thousand is far from being mind-blowing it still means that SENR finished the quarter with a positive bottom line.

The problem, however, is that on a year-over-year basis the reported revenues have remained virtually the same with the company offsetting a $317 thousand decrease in product revenue with a $290 thousand increase in services and $50 thousand increase in solid waste revenue. Back in May SENR secured a purchase order for one of their systems to be deployed in a landfill and gas recovery project in Southeast Michigan. The project is expected to become operational by the fall of 2016.

While SENR may lack some of the more glaring red flags typically associated with pennystock companies using caution is still advised. Do your own due diligence and never put unaffordable sums of money on the line. 

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