Midwest Energy Emissions Corp. (OTCMKTS:MEEC) Steamrolled After Court Ruling on Emissions
Yesterday’s session was an outright disaster for Midwest Energy Emissions Corp. (OTCMKTS:MEEC) shareholders. The company’s stock went in free fall shortly after the opening bell and ended the session 53.7% in the red. The only discernible reason for the devastating drop was the announcement of a new Supreme Court ruling.
Yesterday news came out that the U.S. Supreme Court ruled against the mercury emission limits proposed by the EPA. The judges concluded that the environmental protection agency failed to take into account the tremendous increase in costs for the energy industry the change would introduce. The court’s estimation put the extra costs to power plants under the proposed regulations at around $10 billion per year. Judges ruled against the restrictions with a majority of 5 against 4.
While the energy industry is cheering at the ruling, MEEC shareholders are gritting their teeth. The company was trading as high as it did in the first place because the focus of its work is mercury emission capture and removal systems.
Here is what the company published in its latest quarterly for the period ended March 2015:
- $2 million in cash
- $10 million in current assets
- $13 million in current liabilities
- $243 thousand in quarterly revenues
- $6.5 million in quarterly net loss
The quarter of a million in revenues was derived from sales to a total of two commercial clients.
MEEC was trading very, very thinly prior to yesterday’s news. The company’s average volume for the past month was under 20,000 shares. The court’s decision obviously caused quite a scare for the company to have more than half of its market cap shaved off in a single session. After yesterday’s session MEEC became oversold so a bounce from this new 2-year low is not impossible, but a further panic drop is also a possibility.