Borislav Tonev

National Waste Mgm (OTCBB:NWMH) Sinks in Sub-Dollar Land

by Borislav Tonev January 20, 2016

The members of National Waste Mgm (OTCBB:NWMH, NWMH message board)'s management team have been hard at work solidifying and expanding their company's operations. In October, they acquired Waste Recovery Enterprises LLC – an entity that operates a waste processing and disposal facility in the State of New York. A little over a month later, they closed the acquisition of Rolloff Services L.P. which offers portable dumpster and waste hauling services.

The press releases sounded nice enough and fortunately, NWMH managed to back the forward-looking statements with some actual figures. According to an 8-K form from January 7, the pro-forma consolidated financial statement of NWMH and its new subsidiaries for the first nine months of last year looks like this:

  • cash: $534 thousand
  • current assets: $1.2 million
  • current liabilities: $726 thousand
  • quarterly revenues: $4.1 million
  • quarterly net loss: $141 thousand

Sure, the statement is not perfect, but it certainly looks quite a bit better than what NWMH managed to do on its own. So, in theory, investors should be quite excited about the company and its future.

The chart doesn't suggest that they are, though. Volumes are far from consistent and instead of climbing up, the ticker is actually sliding towards the bottom. In October, prior to the first acquisition, NWMH was traded around the $1.30 per share mark. Then, in a move that was excruciatingly slow, it managed to go as high as $1.70 at the beginning of December, but unfortunately, that's when it faltered and it started slipping down. Yesterday, it stopped at $0.99 – the lowest close in more than a year.

Finding out why investors are so reluctant to jump in is not that easy, but we might as well list a couple of potential factors.

Some of NWMH's critics point out that the Board of Directors recently approved an insider trading policy which allows insiders to sell their shares. No sales have been reported as of yet, but it must be said that this particular action doesn't really inspire much confidence.

We mustn't ignore the (split-adjusted) 2,550,000 shares originally sold for $2,550 as well. As we mentioned in our previous article, they were issued quite a while ago, but considering the shocking lack of liquidity NWMH has experienced over the years, we won't be too surprised if the people who bought them in 2012 still have some left lying around.

Nobody can say for sure whether this has anything to do with the stock's shaky performance, but it's fair to say that it's worth bearing it in mind. Especially considering the unpredictable swings NWMH is going through at the moment.

A few minutes into today's session, NWMH is traded at $0.95 – a further 4% down.

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