Abtech Holdings, Inc. (OTC:ABHD) Awaits Effect of Yearly Results
The long weekend silenced most promotions, and a different set of tickers took front row. Among them is actively traded Abtech Holdings, Inc. (OTC:ABHD), which may expect renewed interest with the next trading session as it announced its quarterly results last Friday. The company is in the business of offering solutions for water safety management for diverse demands, from storm water management to systems for the oil industry. 
The company has not been promoted since 2011, and so far has kept healthy levels of price and volume even without the aid of pumpers. This may mean ABHD holds something more, a potential for longer-term trust among investors. Let’s see how its balance sheet lines up:
- $2.5 million cash
- $2.3 million total current liabilities
- $716,691 net revenues
- $5.3 million operating loss for 2012, up from $3.6 million in 2011
As it is easily seen, Abtech has found a reasonable niche, and the only worrying thing are the deepening losses. The company had a loss of only $2.8 million in 2010, mostly on increased spending on research and marketing. While this may be a sign of expansion, the future will show if the extra outlays were feasible. On the plus side, the company announced its revenues from water filtration technologies increased by 33%, but still less than expected due to the economic downturn.
The losses are deepened by interest expenses, as the company has not been able to cover its expenses and in its statements points out it is working with negative cash flows. The company also has the habit to convert its debt, with $7.3 million in debt and more than $500,000 in interest converted to shares. In addition to new issues for cash, ABHD is threatened by dilution and significant insider holdings which could depress the market.
Despite the economic crisis, ABHD shows a respectable potential, with active trading. The company ended last week on a positive note, adding more than 11% to 67 cents, and is marking a rising trend in the past few weeks. The lack of a visible promotion may be good news, as pumps have created disproportionate spikes in the past, and later the stock slid down to lows of around 30 cents.
The ABHD ticker was mentioned briefly around two years ago by Stock Mister, and this caused a robust spike in May that year, with highs above $1.50. At the initial trading, ABHD opened up to $2.50, but has never touched that level again, or the volumes from those first days in 2010. Keep in mind the company’s widespread financing activities, a main source of cash upward of $5 million per year, and estimate your own risk preference before selecting ABHD.
