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ABHD.OB a pump and dump or potetnial investment?

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January 18, 2012 – Comments (12) | RELATED TICKERS: ABHD

I was listening to Kathleen Hays on Bloomberg radio and she had the ceo of a company called Abtech Holdings discussing what his company does.  Basically it owns a water cleaning system called smartsponge. What caught my interest was the mention of Waste Management's involvement and his mention of expected revenue for 2012 of 17-20 million dollars.  I then looked at the stock action and was amused that the stocked jumped from .54 to .78 right after his appearance on the show.  I fully expected it to retreat which it subsequently did.

I did a little digging about the company but couldn't find enough material to form any real opinion.  There is little info on the deal with Waste Management.  I did read it's recent 10-Q and in it it warns about the company's ability to continue as a going concern.  I also saw that 3 of the top officers are taking salaries around $450,000 despite the company generating anything close to that amount in revenue.

I still have that 17-20 million revenue projection for 2012 in my head (comapny has over 49million shares outstanding) which I am wondering is a connection to the Waste Management deal.

The theory of the company does look interesting, and with fracking needing large amounts of water there seems to be considerable potential.

Just wondering if anyone has done any deeper dd on this or is it just a pump and dump scam.

12 Comments – Post Your Own

#1) On January 18, 2012 at 10:36 PM, awallejr (79.39) wrote:

I really need to do better proof reading before hitting post, the title should read "potential."

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#2) On January 18, 2012 at 11:57 PM, Mega (99.97) wrote:

That looks like plenty of information to form a real opinion.

A manufacturing company can't do $17M in annual revenue if they only have $1.4M in assets and $50K (!) of equipment.  It is impossible.

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#3) On January 19, 2012 at 12:11 AM, HarryCaraysGhost (99.67) wrote:

Ha,Ha, I red thumbed this puppy back at $1.20.

I'm voting Pump that eventually goes to zero.

Might be wrong but I doubt it.

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#4) On January 19, 2012 at 12:15 AM, Mega (99.97) wrote:

I see they just completed a $4M secondary financing. However that is still nowhere near enough to support their claims or their stock price.

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#5) On January 19, 2012 at 12:32 AM, awallejr (79.39) wrote:

Thanks for the replies.  And I would agree with your comment in #2 Mega, but it is the deal with Waste Management that could be the projected source, since certainly WMT has the financial wherewithal.  I just can't find any details.  Was hoping someone else could link something on that.

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#6) On January 19, 2012 at 12:56 AM, Mega (99.97) wrote:

I searched WM.com for Abtech and SmartSponge.  The only hit was the initial press release from last April.  There are no sales or service pages that mention it, which seems to me a pretty bad sign.

http://www.wm.com/about/press-room/pdfs/20110420_Waste_Management_Announces_Solution_to_Reduce_Stormwater_Pollution.pdf

Obviously WM could pay them $17M, if Abtech could produce $17M worth of products.  My point is, they clearly can't.  Their $4M financing isn't even for production equipment, Abtech states that it's being used for hiring and development costs.

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#7) On January 19, 2012 at 1:20 AM, awallejr (79.39) wrote:

I suppose the safer way to play it is to buy WM (which pays a respectable 3.6% dividend to boot).  But that link is giving WM exclusive North American rights.  Will WM simply produce it and pay ABHD licensing fees?  Doesn't say.  I like the connection since WM is a quality company, I am just suspect of the CEO's predictions in light of its last 10 Q filing.

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#8) On January 19, 2012 at 9:27 AM, drgroup (69.18) wrote:

I was listening to Kathleen Hays on Bloomberg radio and she had the ceo of a company called Abtech Holdings discussing what his company does.

Did it ever occur to you that AH pays bloomberg to advertise the company just like they buy advertising in periodicals? Your bad...

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#9) On January 19, 2012 at 3:32 PM, awallejr (79.39) wrote:

Of course, hence my reservations.  But then again . . . .

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#10) On January 19, 2012 at 8:23 PM, walt373 (99.84) wrote:

I red-thumbed this stock back in May last year. I'm with the others, probably a scam, and if not then at least very overvalued. Company has $1.4m in assets, $3.3m in current liabilities and some more long-term debt on top of that. Burning $3m in cash every year. And trading at $33m!

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#11) On December 05, 2012 at 10:09 PM, OklaBoston (67.15) wrote:

If this were a "pump-and-dump" the dump phase would be in progress by now.

 I can understand being suspicious of something that went public so cheap,  but this looks legit to me.

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#12) On December 19, 2012 at 6:43 PM, awallejr (79.39) wrote:

This news look looks very promising:

 http://finance.yahoo.com/news/abtech-holdings-announces-distributorship-australia-185700071.html

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