National Waste Mgmt Hldgs Inc (OTCBB:NWMH)’s Strange Run Continues

Some things about National Waste Mgmt Hldgs Inc (OTCBB:NWMH) might put you off. The company has gone through a change in control and not one, but two stock splits. The business plan was altered as well last year when NWMH ditched its idea of buying and selling pieces of art and decided that it will make much more of an impact on the waste management business. Experienced investors know that in Pennyland, these things could constitute a recipe for disaster sometimes.

Others, however, might be drawn to both the company and the stock. NWMH‘s performance over the last few months, for example, has been commendable. At the beginning of February, the ticker was firmly stuck to the $1 per share mark, and the volumes weren’t really strong enough to push it further up. By contrast, it gained 2% yesterday and it finished the day at a 52-week high of $1.89 while the number of shares traded throughout the session stood at nearly 250 thousand.

A quick look at the latest report might make you even more excited. Here’s what the company recorded at the end of last year:

  • cash: $108 thousand
  • current assets: $226 thousand
  • current liabilities: $95 thousand
  • yearly revenues: $1.6 million
  • yearly net income: $157 thousand

The positive bottom line and the significant growth in revenues (32% on a year-over-year basis) are signs that NWMH‘s waste management business is very much alive and kicking. What’s more, there’s no toxic debt to worry about and a recent acquisition of another landfill in Florida could result in some more positive figures in the months to come.

So, the stock performance is not bad and, by OTC Standards, it’s remarkably consistent. To top it all off, the company is in good shape. Sounds like breaking the piggy bank and buying as much shares as you can is the most natural thing to do. Let’s not get carried away, though.

As decent as the stock performance is, it doesn’t seem to be caused by anything immediately obvious. NWMH is not exactly the most PR-active penny stock company and although it did receive some exposure from Donald Baillargeon’s MoneyTV, the stock didn’t really react to it immediately.

And if you take a closer look at the historical data, you’ll see that while the volumes are rather significant, they seem to be achieved after only a handful of trades. Yesterday, for example, NWMH logged a dollar volume of over $450 thousand after just 59 transactions. In other words, a large amount of money is spent by a small number of people.

Then there’s the past. The previous business plan bears no impact on the company’s current operations, but unfortunately, the same can not be said about the history of selling shares. In November 2012, some unnamed investors bought 25,500 shares of common stock for a grand total of $2,550. Thanks to the two forward splits, these investors could be holding on to 2,550,000 NWMH shares. And they might be willing to sell them to you and cash in on the huge profits. This, by the way, is something we warned you about more than a month ago.

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