Hi folks, this is my first post on this MB. I bought ABHD about 8-9 months ago in the 1 dollar range. At that time there was a SA article speculating about the possibility of Waste Management buying ABHD. Has there actually been any traction for that possibility or was that article just a pump and dump?
Thanks scrutt and lopo for your perspectives. If remember correctly, I think the author of the SA article thought that WM might be interested in owning the Smart Sponge product. The author speculated that WM would have the resources and contacts to be able to market Smart Sponge. I was just wondering how the author came up with the speculation that WM would be interested in buying ABHD.
I think you can still access the article if you go back to older news stories. Waste management has that 5 yr agreement with Abtech. At the time there was a strong belief that the LA stormwater situation was going to be a big break for Abtech. He laid out a scenario where another company might make a run for Abtech and if that happened, theorized that WM would have to outbid them to gain control of Abtech. At the time the scenario made sense, and still may make sense but a lot further down the road.
The author of that was talking about that being a potential scenario once ABHD started winning some contracts. Waste Management could not justify to its shareholders at this time that buying Abtech would be a positive move for their company. If however, ABHD starts landing some municipal contracts as well as penetrating the oil and gas market then this scenario begins to make sense. I wouldn't expect that to play out though for a few years. This contract is a step in the right direction though.
Buyout makes zero sense!!!! Why would you buy a company with virtually zero revenue and zero contracts. You make a company build out infratstructure and contracts and become profitable, then buy them out.