Georgi Kamburov


by Georgi Kamburov February 18, 2016

Looking through the last couple of press releases made by National Waste Management Holdings, Inc. (OTCBB:NWMH, NWMH message board) shows that the company has been making solid progress. In the last quarter of 2015 it closed two acquisitions, on December 28 it entered into a three year contract with Citrus County in Florida, and the latest PR from January 26 announced that NWMH has expanded its Hernando, Florida facility.

The encouraging PRs should have pushed the stock of the company to new heights with the equity research firm SeeThruEquity even giving the ticker a 12-month price target of $1.96 per share. The chart performance shows a different picture, though - not only is NWMH not surging up but they are actually sliding lower and lower down the chart. Yesterday the stock corrected by another 9% and closed at $0.786. During the session a new 52-week record low of $0.625 was registered. For NWMH this was the seventh session of losses in a row.

The strong negative sentiment towards the stock may leave some investors surprised. While the financials of the company definitely show some weaknesses they are still not that bad - the pro forma consolidated balance statement for NWMH and its two acquisitions for the first nine months of 2015 contained the following numbers:

• $534 thousand cash
• $1.18 million total current assets
• $726 thousand total current liabilities
• $4.12 million revenues
• $141 thousand net loss

Still, there are a couple of reasons that could explain the current slide of the stock. A few years back NWMH sold around 2.5 million split adjusted shares to a group of unnamed investors for the original sum of just $2550. Or investors might have seen the form 5 filings from January 22 according to which insiders of the company have been selling shares on the open market during the last couple of months of 2015. Not to mention the approval of an insider trading policy which allows insider to sell shares according to pre-arranged trading plans.

When dealing with NWMH's stock you should use caution. Take all of the possible risks into account and only then put any money on the line. 

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