BIG Investment Group LLC 10 minute
Post# of 3844
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BIG EWSI Cincinnati Grand Opening:
Folks we had a very informative visit today with Ewaste Management (EWSI)
Many of you know I try my best to visit companies personally that I deem a long term type of opportunity. As a former business m anager/executive I'm a firm believer that you can garner a great deal of information by just witnessing the facilities, work environment, employee interactions and daily operations.
?? Overall Impression (facility, environment)
Impressed. There is NO questioning the fact that this is a real company run by talented and driven management. Brand new facility with very clear business model and operational flow. We were stepped through the operational processes and material flow for Ewaste management. You will see from the pictures the facility as well as various work centers, stages throughout the process. As any start-up you can tell that they are doing the most with as little overhead type of expense as they can. I appreciate that. Management and employees were very competent and articulate as they described their strategy and various work center responsibilities.
Here are the top-line takeaways from our conversations with company representatives.
?? Julie Peterson (VP - Cincinnati)
Julie provided us with a very professional tour of the facility and allowed us to take as many pictures as we wanted. The workers seemed very engaged with EWSI with a definite sense of pride in their work. Julie indicated that personal electronic waste could be dropped off at the facility at no cost to the individual, while the organization is charging a fee to commercial businesses for this same service. She also said that they hope to obtain a mobile shredder, which will allow the company to destroy sensitive electronic data for companies at their site.
?? Susan Johnson (Investor Relations)
Susan spoke about the multiple auditors they have had and how busy she has been managing her time due to the global nature of the company's operations.
The company was determined to establish the right relationship with the right auditing firm. Through a few trials they have done so.
?? Marty Nielson (CEO)
Marty stated that he has, and is executing, a clear, business plan. In response to our questions, he discussed the recent dilution, upcoming audited financials, and potential new contracts:
?? Dilution - Marty did confirm that dilution has been required for business operations but primarily driven by the recent expansion and grand opening of the new facility. He indicated that this was more preferable than other potential financing strategies, such as the use of convertible notes. He also spoke with excitement about the future and that the need for dilution should be a thing of the past. I guess time will tell on this one. He is well aware that this is the ONLY factor that has kept the current pps from reaching an accurate valuation.
??Audited Financials - Marty discussed his frustration of the previous auditor as it related to the Chinese sector of the business. He is looking forward to April 15th when the audited financials will be available and he can put this behind him.
??New Contracts - Marty intends to sign multiple new contracts after the audited financials are available after April 15th. Details were not discussed here but we got the distinct impression that the deals are with MAJOR business entities.
??Certifications - Marty discussed the company's ongoing efforts to achieve the highest certifications with their equipment and throughout their processes. He indicated that these certifications would continue to be posted on the company's website as they are reached.
We also observed a 1-800-Got-Junk van pulling into the facility as we were leaving which we thought was interesting.
Special thanks to fellow BIG members Tom, Tim and Joe Kennedy for also attending this visit. I greatly appreciate the effort and valuable insight.
Bottom line folks is that if the company can in fact stop diluting this stock will progressively go higher and higher. I have NO doubt about that. I will be checking with the TA weekly on this stock. Late April there will be several news events coming from this company starting with the audited financials.
I'm holding my position here and if I get an indication that dilution has stopped I will dump a truck load of cash into this stock.