A little bit of venting on folks' part who have fo
Post# of 3844
Posted On: 12/21/2013 9:34:02 AM
Re: EwasteGuru #1636
A little bit of venting on folks' part who have fought the long battle against idiots on IHUB for the past 6 - 9 months. That's all. But, you're right! Lots to chat about with EWSI.
T/A is indeed gagged. No worries for me at all here. Not a red flag as I expect dilution to occur throughout the year until the company can go cash flow positive. The atypical red flag for a gagged T/A is that the company is dumping shares and lining their pockets. Most of these companies will only update shareholders via financial filings. If they're a pink tier company, then their reporting is even more hidden.
Since EWSI is a fully reporting QB company, and they will be updating their share structure monthly, this is a simple business decision to eliminate blocks of time that are currently being used specifically to answer shareholder questions about the share structure. That time can be better spent working directly in issues that will continue to grow the company.
EWSI's goal is to get very big very quickly. Folks need to pay attention to the specific values that will eventually determine fundamental value. Gross margins, net margins, cash on hand, operating expenses and what it will take to get cash flow positive, asset growth, control and diminishment of liabilities to ensure a healthy asset/liability ratio, and revenue growth. As EWSI gets bigger and goes cash flow positive, then their value will be easier to assess as they become a "similar" operating entitity to those bigger companies with higher valuations already trading on the NYSE and NASD.
The risk to early investors is that the original share structure will have to be modified at some point in the future (increase in A/S or R/S) to accommodate continuing growth. That being said, anything under 10 is bargain basement based on filed and projected growth Qtr over Qtr. There will be many opportunities to manage your position moving forward IMO.
Why I'm not worried about dilution. It's being handled correctly and is being used primarily for company growth which directly relates to shareholder value. If I project out two years and I think the company will be operating a billion dollar business on 25 percent gross margins and net margins of 10 percent with 400 million O/S then I'm a happy camper here. That would be 25 cents per share EPS. And, if they can attain this type of run rate, then we can project what multiples the current market provides to waste recyclers, such as DAR (NYSE). If these metrics can be achieved, then many millionaires will be created here for those that actually buy and hold, or buy and hold a core and simply manage a portion of their holdings for trading chart patterns and bull runs on news.
It could get very exciting here very quickly. What if they become a 2 billion company on 25 percent gross margins and 10 percent net with 400M O/S? You see my point. Don't count EWSI out of that elite billion dollar plus club. Look at the Italy deal that was just inked. Look at the proposed production run rate for the facility. Look at and evaluate the idea of feedstock flow from Africa and the Med via a major shipping route directly to a major recycling facility that could handle 230 million pounds per year! Efficiencies show themselves brightly when a large facility is managed correctly. Logistics are cheaper and bigger is better. Absolutely everyone wins in the entire chain...collectors, shippers, processors, OEMs get huge amounts of recycled product back....etc...this is a very very very big proposition. If this facility gets built and product flows as the model predicts based on capacity, then this facility alone would represent almost half of what the largest recycler in the U.S. is currently accomplishing!!
Anyway, just a few thoughts about EWSI.
I think we get a couple 8Ks shortly that will shine a light on recent trading activity and will provide much needed insight into the 5M LOC with TCA Global.
For those on this board that are not familiar with me, I am the shareholder that conducted the very first CEO interview in March of this year which was subsequently filed on April 1st via an 8K. So, if folks suspect me of being an insider or "a plant" as was recently suggested, it simply is not true. I am not an insider. I possess no inside information. I am very interested in EWSI because I believe it is possibly the most exciting "investment grade" company being traded on the OTC right now. I know what I own....lots of longs do!!
T/A is indeed gagged. No worries for me at all here. Not a red flag as I expect dilution to occur throughout the year until the company can go cash flow positive. The atypical red flag for a gagged T/A is that the company is dumping shares and lining their pockets. Most of these companies will only update shareholders via financial filings. If they're a pink tier company, then their reporting is even more hidden.
Since EWSI is a fully reporting QB company, and they will be updating their share structure monthly, this is a simple business decision to eliminate blocks of time that are currently being used specifically to answer shareholder questions about the share structure. That time can be better spent working directly in issues that will continue to grow the company.
EWSI's goal is to get very big very quickly. Folks need to pay attention to the specific values that will eventually determine fundamental value. Gross margins, net margins, cash on hand, operating expenses and what it will take to get cash flow positive, asset growth, control and diminishment of liabilities to ensure a healthy asset/liability ratio, and revenue growth. As EWSI gets bigger and goes cash flow positive, then their value will be easier to assess as they become a "similar" operating entitity to those bigger companies with higher valuations already trading on the NYSE and NASD.
The risk to early investors is that the original share structure will have to be modified at some point in the future (increase in A/S or R/S) to accommodate continuing growth. That being said, anything under 10 is bargain basement based on filed and projected growth Qtr over Qtr. There will be many opportunities to manage your position moving forward IMO.
Why I'm not worried about dilution. It's being handled correctly and is being used primarily for company growth which directly relates to shareholder value. If I project out two years and I think the company will be operating a billion dollar business on 25 percent gross margins and net margins of 10 percent with 400 million O/S then I'm a happy camper here. That would be 25 cents per share EPS. And, if they can attain this type of run rate, then we can project what multiples the current market provides to waste recyclers, such as DAR (NYSE). If these metrics can be achieved, then many millionaires will be created here for those that actually buy and hold, or buy and hold a core and simply manage a portion of their holdings for trading chart patterns and bull runs on news.
It could get very exciting here very quickly. What if they become a 2 billion company on 25 percent gross margins and 10 percent net with 400M O/S? You see my point. Don't count EWSI out of that elite billion dollar plus club. Look at the Italy deal that was just inked. Look at the proposed production run rate for the facility. Look at and evaluate the idea of feedstock flow from Africa and the Med via a major shipping route directly to a major recycling facility that could handle 230 million pounds per year! Efficiencies show themselves brightly when a large facility is managed correctly. Logistics are cheaper and bigger is better. Absolutely everyone wins in the entire chain...collectors, shippers, processors, OEMs get huge amounts of recycled product back....etc...this is a very very very big proposition. If this facility gets built and product flows as the model predicts based on capacity, then this facility alone would represent almost half of what the largest recycler in the U.S. is currently accomplishing!!
Anyway, just a few thoughts about EWSI.
I think we get a couple 8Ks shortly that will shine a light on recent trading activity and will provide much needed insight into the 5M LOC with TCA Global.
For those on this board that are not familiar with me, I am the shareholder that conducted the very first CEO interview in March of this year which was subsequently filed on April 1st via an 8K. So, if folks suspect me of being an insider or "a plant" as was recently suggested, it simply is not true. I am not an insider. I possess no inside information. I am very interested in EWSI because I believe it is possibly the most exciting "investment grade" company being traded on the OTC right now. I know what I own....lots of longs do!!
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