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Advanced Emissions Solutions, Inc. (ADES)

NasdaqGM - NasdaqGM Real Time Price. Currency in USD
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4.7740+0.0540 (+1.14%)
As of 09:35AM EDT. Market open.
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  • t
    tac
    Anybody a subscriber? Read his initial thesis on ADES which is free and I quickly made the name a top holding as it is much cheaper now. Europe is firing up plants again pretty aggressively and clean water is becoming harder to find for industries or water you drink at home. ADES might of got into the water filtration business at the best possible time. Very happy to own this name for free :).

    Like this post from analyze this on another message board as well thought I would share.

    He didn't really do that much in depth analysis it seems. It took me 5 minutes to look up the answers. So let's look at some of the answers. The author says the residual company has not made a profit in 10 years.... while that may be true....The Red River plant was only acquired in 2018. So that's only 3 years ago. Hmmmmmm So the author may feel the residual may be worth possibly Zero.....yet he failed to mention from a 11/14/2018 press release that the plant had invested capital in it of $380 million. So is this plant with $380 million invested in it worth Zero ? Hmmmmm I don't imagine so. On another front this plant was acquired for ". Total consideration for this acquisition is $75 million, representing approximately 4.2x Adjusted pro-forma EBITDA" back then. Now....while the author read a few transcripts I guess he missed the details of the press releases. Let's go over APT for last 3 quarters ....fair enough ?
    Start off with revenues:
    Third quarter revenue for the APT Segment totaled $24.7 million compared to $15.8 million in the prior year. Second quarter revenue for the APT Segment totaled $16.0 million compared to $8.2 million in the prior year's quarter. First quarter revenue for the APT Segment totaled $17.0 million compared to $9.2 million in the prior year. Hmmmm notice a trend in revenues and we haven't even seen anything from the future European business scheduled to start this year.
    Now, as for EBITDA let's look at each recent quarter.
    APT Segment Adjusted Q3 EBITDA totaled $4.2 million compared to a loss of $1.6 million in the prior year. APT Segment Adjusted Q2 EBITDA totaled $0.3 million compared to a loss of $2.3 million in the prior year. APT Segment Q1 EBITDA totaled $2.2 million compared to a loss of $5.0 million in the prior year. Correct me if I am not wrong, Q2 was impacted by a fire,,, no ? So what I notice from these tid bits from press releases is that Red River revenues are increasing at a fairly rapid pace and EBITDA for the last quarter was $4.2M or $16.8M annualized.
    How could the author have missed this I have no idea. Anyways, the author needs to be more thorough and focus on relative important current points. After all, stocks are based upon the future and not the past.

    https://seekingalpha.com/research/1099377-courage-conviction-investing/5706855-advanced-emissions-solutions-patience-should-eventually-payoff
    Advanced Emissions Solutions: Patience Should (Eventually) Payoff | Seeking Alpha Marketplace
    seekingalpha.com
  • w
    wbart21
    EPA recommends GAC for 'forever chemical' removal by municipal water systems with Clean Drinking Rule to be issued this Fall. Lexology Article 6/20/22 Drinking Water Suppliers Face Challenges After EPA issues near zero health advisory for PFAS ... EPA GAC recommendation referenced in 2nd to last paragraph.

    Despite numerous drivers the CEO/mgt/BOD of this publicly traded company continue to fail in one of their most important responsibilities. Growing the value of the company's currency...it's share price.
  • H
    Halevay
    Ok boys and girls

    Here we go. Stock dropped below $5…so I bought 20,000 shares of ades over the past few trading days…avg price of 4.705
    Today I sold 200 August $5 calls for $.30 each
    (Sad that I was once getting $3 when the stock was at $20)

    Total possible return of 12.5% in two months.
    If the stock doesn’t move it’s a 6.25% return
    My downside begins at $4.40

    Has my opinion about the company changed? No.
    Risk/reward is better now that I can write covered calls.

    Time to see what it’s like being a bag holder again.
  • P
    Peter
    Just read on Yahoo that Germany is going to re-open its mothballed coal-fired power plants.
  • D
    Dieter
    It is difficult to say when ADES will comment on future direction.

    It is also impossible to predict at present when a sustained improvement in results will occur. This would require a slowdown or a reversal of the price increase. Sounds paradoxical that they would benefit from falling prices, but it looks to me like they are suffering with the price current (expensive) purchases to cover supply obligations from long-term supply commitments at lower prices.
    Of course, ADES could use the high cash to increase capacity. But they don't seem to intend to.

    And so, for the time being, all that remains is to say that the company is now largely valued only on the basis of its short-term funds, while the operating business units are only traded on the market at a scrap price. However, this is already a clear negative exaggeration.

    Here is a small calculation for this:

    Cash, cash equivalents, restricted cash, end of period 89.807 4,70/sh
    Current incl. restriced cash 120.482 6,31/sh
    Total liabies 37.221 1,95/sh

    Current funds after full debt repayment 83.261 4,36/sh

    Operating and fixed assets 61.089 3,20/sh
    Actual book value 144.350 7,56/sh
    Shareprice 89.752 4,70

    Value covered by short-term capital (see above) 83.261 4,36/sh
    Market valuation of operating assets 6.491 0,34/sh
    Ratio of market value to book value of op. Assets 10,6%
  • P
    Peter
    Enjoy reading all of your posts. But let’s not lose sight of the forest because of all the trees. Yes, the SR is a positive for the possibilities but it is NOT a necessity. ADES has a great future in front of it. Its checked past is just that…….the past. Revenue at $100 million a year, margins increasing, demand growing, cash on hand, no debt.

    So, relax and enjoy the ride.
  • V
    VincentTG
    What the hell is going on with this company? 2 years of absolutely nothing... No dividends, no buybacks, no policy changes. Does the management even care about the investors?
  • S
    SW
    From the last CC "....While the process has drawn out, the fact remains that we are pleased with where things stand within the process and are hopeful that we can provide an update soon..." Greg, sooner than later would be nice. I have seen major military contract procurements move faster than this.
  • S
    Sultzer
    This site just sent me a 68% winner. (http://traderspot.club)
  • I
    Invest990
    Well-I am not impressed. Since the company can raise prices they should be able to start making a profit soon. But there’s no reason to think the share price will be climbing in the near future on product lines alone.
  • S
    SW
    Anyone believe it’s time for new leadership for this company?
  • S
    SW
    From the CC relating to the SR “It's a great question. While we are certainly sympathetic to investor's desire for more detail regarding the status of our strategic review. We are also very appreciative of their patience. It has always been our desire and intention to provide updates as appropriate and required by public company regulations. That being said, we have no timeline for the process’s ultimate conclusion. It is very difficult to predict the timing or the evolution of a process like this, given the sensitivity of the discussions involved, as well as the need to preserve certain confidentialities. While the process has drawn out, the fact remains that we are pleased with where things stand within the process and are hopeful that we can provide an update soon. Despite the duration of the process, it has not detracted from our ability to run the business, as demonstrated by the results and operational improvements achieved within the business during this past year.”
  • P
    Peter
    I suspect that since ADES and Norit signed their contract to share production from Red River, Norit has been in de facto control of the operation of Red River.
  • H
    Halevay
    So what’s says all the technical and fundamental analysis folks and wishful thinkers about the upcoming earnings call?
    Update on the strategic review? Blockbuster earnings from the APT segment? Announcement of share buyback or stock dividends?
    I would love to see what everyone thinks
    Speak now or forever hold your peace.
  • R
    RalphD
    This is what Cascade Environmental has to say about $ADES FluxSorb product:

    FluxSorb™ IS is an injectable colloidal carbon product (CCP) designed to target difficult-to-treat contaminants like chlorinated volatile organic compounds (CVOCs), benzene/toluene/ethylbenzene/xylenes (BTEX), per and polyfluoroalkyl substances (PFAS), and other pollutants. It is manufactured exclusively for Cascade by FluxSorb Technologies, an affiliate of ADA Carbon Solutions, the leading provider of activated carbon in North America.

    Q1 coming up.
  • S
    SW
    Q1 CC on May 10. Will we get any definitive update on the strategic review or will management continue to “please” themselves?
  • P
    Peter
    Shares short continue to drop: down from 200K to 112K.
  • w
    wbart21
    $6.70+ in coming week or two if $6 area holds = $8.
    Potentially very bullish set ups developing.
    Interesting how that happens after institutions add on the $6 gap fill.
    We shall see.
  • w
    wbart21
    OEP closed today on a large cash raise. PR mentions Norit(among other invested companies) & of OEP's targeted size acquisition ($30-$300m). Also highlight their mid market investment strategy: transformative combinations merging complimentary like sized businesses to create market leaders. ADA + Norit would appear to be a perfect business combination w/i OEP's portfolio & a leader in the growing purification space
  • R
    RalphD
    Are there any professional EPS estimates for 2022?

    Q1,Q2 are expected to receive some cash flow from closing RC work.