rockvuecap

Has the Market Mispriced Refined Coal?

Long
NASDAQ:ADES   Advanced Emissions Solutions, Inc
Just finished writing a detailed analysis of ADES in which I talk about the growing demand for refined coal both in the United States, and more importantly Southeast Asia. ADES is sitting on loads of cash, its turning around its cash from operations, and has a solid catalyst in its chemicals business that puts it ahead of the industry. Using DCF it has a fair value of around $22/share when using the average EPS over the last four years.

The technicals aren't great, but I like the support level and am looking for a bounce from support.

Check out my post if you're interested, and please, leave feedback if my analysis is missing something or if I am overlooking anything: https://rockvuecapital.wordpress.com/201...

Comments

Nice post and good analysis. I hope this company will make it. I agree that the technical picture is looking weak overall but the last week showed some positive action (even though on the dark side of the Moon). I'd say if there's positive follow up there's hope. Good luck.
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rockvuecap IllusionsCatcher
@IllusionsCatcher, thank you for the kind words ! I'm hoping management is smart and diligent with their cash. If they don't screw it up they could place themselves very well in this industry heading forward.
Reply
@rockvuecap, I was studying coal quite intensely a couple of years ago and I thought that clean technologies would turn this industry around soon.
Reply
rockvuecap IllusionsCatcher
@IllusionsCatcher, I agree. It also helps that you now have an administration that seems hell-bent on enforcing this clean coal initiative, much like the previous' administration's fervent spur of electric vehicles. It isn't always a terrible idea to find out-of-favor best of breeds in an industry backed by government incentives for business.
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