NATIONAL CHALLENGE SYSTEMS INC. (TSE:NLC) is a fast growing, undervalued company specializing in the sale, rental and service of waste compactors. The largest distributor of recycling, waste-handling and compacting equipment and systems in Western Canada, they offer significant cost savings to their clients over traditional methods of waste handling. Their growing list of clients include many leading American and Canadian corporations and organizations, including:
McDonald's Restaurants
Safeway Food Stores
Real Canadian Superstore
Save On/Overwaitea Foods
Canadian Waste Services
Western Star Trucks
General Coach
Newnes Machines Ltd.
Laidlaw
BFI
Through several acquisitions over the past 18 months, National Challenge is now able to manufacture and customize their own waste handling equipment. They recently launched a revolutionary, patented organic resource recovery system which co-mingles organic waste from the food industry, stores it in tanks on farms and completely recovers the waste as an agricultural soil conditioner.
As environmental concerns grow, National Challenge's waste management systems offer not only an "envionmentally friendly" solution, but cost savings as well. The "pay-back time" (at which point the savings have paid for the equipment) for clients is just over 2 years! From then on it is $$$ in the bank for the client! National Challenge keeps generating revenues through service contracts, as well as through rental and leasing contracts if customers prefer not to buy the equipment.
As of today (Mar. 2, 1998) the shares trade at $0.65! With 15.9 M shares outstanding (float: 13M), the market cap is $10.3 M. But the company did $13.3 M in sales in fiscal 1997 and expects to do $18 M in 1998.
i.e. it is trading at LESS THAN LAST YEARS SALES!!! And almost HALF OF THIS YEARS SALES!!!
I believe that NLC is an undiscovered, extremely undervalued stock with tremendous upside potential.
Regards,
Garth Richmond. |
