PhredG explained very eloquently why the reverse l
Post# of 3844
Ha. I know something you don't know. Could be industry experience perhaps?
Attack me all you want, but I'd be willing to bet that I know more about this company than most. So EWSI doesn't own a facility in Timbuktu? It doesn't matter. I've been in the industry at a developmental level for over a decade. The industry has much more to do with forming the proper upstream and downstream partnerships as it does with having ten dozen physical locations at the onset. The single biggest line item in a waste hauler P&L is the transportation cost/processing facility relationship. As you put the pieces together, you need the flexibility to contract locations for processing that are in geographical reach of the materials processed. Hence all the JV's and other paper deals. You can make lots of revenue in this industry by having the correct geographical reach for the deal. As downstream partners process material, and the volume stays steady or increases, it then behooves EWSI to stock swap for the physical location.
Why choose the first deals in or near Columbus and Cincinnati? Why are these cities hubs of Distribution? Because 50% of the US population resides within 500 miles. This is ONE day of trucking. EWaste has to be consolidated and moved before it can be processed. It appears the 2TRG deal may actually have been thought out…. Who knew?