There are so many great penny stocks out there now. Check this one out.
RICH COAST, INC. (NASDAQ: KRHC)
Ask - Bid: 0.6875 (11/16) - 0.625 (5/8)
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Corporate Profile: Rich Coast, Inc. (NASDAQ: KRHC) operates as a
non-hazardous waste treatment and recycling facility in Dearborn, Michigan.
In 1992, Rich Coast Inc. "The Company" formed Waste Reduction Systems "WRS"
to build a comprehensive non-hazardous industrial waste treatment, storage,
disposal and recycling facility. Management developed proprietary processes
for converting hard-to-treat industrial waste oils and successfully
developed specific expertise in waste water treatment, solids processing,
biological remediation and (off-spec) consumer product disposal. These
increased capabilities enabled WRS to develop strong relationships with
industrial waste generators and brokers.
With its significant growth, WRS became the sole operating division of the
Company. Still, the limited size and restrictive layout
of its facility disqualified WRS from consideration when the largest
industrial waste generators contracted for large-scale environmental
services.
In January of 1996, the company acquired a new operation facility from
Mobil Oil Company. This facility has 10 million gallons of tank storage
capacity on over 17 acres in Dearborn, Michigan, less than 1/4 mile from
the existing plant. This purchase will facilitate continued growth and
expansion and will dramatically increase its processing capabilities and
market coverage. This facility provides the Company with a unique
opportunity to address the changing needs of the market by building a
custom designed state of the art facility that will provide a clear
advantage over all its competitors.
The State of Michigan has granted the Company and Mobil Oil a covenant not
to sue for any previously existing environmental
contamination on the property. Exhaustive soil testing and an environmental
examination of the property were concluded prior
to the purchase, and the State of Michigan's Administrative Order
of Consent (AOC) is legal evidence of the facility's condition.
A one million gallon biological treatment tank at the new facility which
will be the largest commercial biological treatment system in North America
will be operational winter/1997. Corporate strategy calls for continued
installation of process equipment and facilities in order to capitalize
effectively on the competitive advantage of the acquisition. This new
facility will provide unmatched capacity and services to the expanding
customer base and position Rich Coast to become a dominant force in this
growing industry.
Since initiating operations, management has shifted its corporate strategy
from a focus on waste water treatment to a primary
focus on oil recovery and recycling. Margins in this segment are higher and
the Company has developed a proprietary chemical
treatment technology to cost effectively treat these wastes. As this shift
continues, it will allow the Company to expand its low
volume processing of automotive waste oils currently underway with General
Motors. Contracts in hand and those in the bid process have made the oil
recycling area the major area of revenue and profit growth for the Company.
This is expected to continue due to the recent trend by the three largest
US Automobile producers to recycle more of their waste and to do so with
outside vendors.
Major Strategic Goals:
1. Dominate the Non-Hazardous Treatment, Storage and Disposal (TSD)
market;
2. Win major contracts by taking advantage of existing relationships
at the highest levels of the defense department, and in the
steel and automobile industries;
3. Provide comprehensive waste disposal solutions, including the
complete scope of treatment, recycling and disposal option,
that generators require;
4. Create a facility designed for generator audit superiority;
control and tracking of each individual waste stream;
5. Expand marketing programs with selected environmental firms to
more effectively win bids with new and existing clients;
6. Optimizing cost structure with continuous improvement in both
quality and service operations.
Research Report: The National Investors Council "NIC" prepared a corporate
digest that highlights specific company details (Recent Events, Services,
Management Outlook, Management, and Selected Financial Information). This
digest can be found at
richcoastinc.com.
Rich Coast is a market leader in providing innovative, nonhazardous
industrial waste treatment services to major corporations
throughout the industrial Midwest and Canada. Waste Reduction Systems
(WRS), a subsidiary of Rich Coast Inc., uses proprietary chemical treatment
technology for recyclying waste oil. WRS also handles the treatment of
wastewater and industrial liquids, wet solids, product destruction and oil
sludge. WRS' proprietary system separates wastes into liquids and solids,
treating them so that the liquids may be safely discharged to the sanitary
sewer and the solids (greatly reduced in volume) may be deposited, safe
from leaching, in a landfill.
Rich Coast has developed technology for oil recovery and soil remediation
which recovers oil for future use and cleans soil to
better than-its-original state.
Latest News Releases:
February 20, 1998 - Reports Continued Record Revenue Growth
Rich Coast Inc. is pleased to report that revenues for the
third quarter, ended January 31, 1998 reached $814,228.00
compared to $388,538.00 in the same period last year. Final
results for the past nine months, including EPS statistics
will be available by March 15, 1998. This is the highest
quarterly revenue figure ever reported by the Company and
reflects management's continued efforts to position the Company
as a leader in the efficient treatment of industrial liquid
waste and the recycling of used oils. To ensure future growth,
construction and installation of additional capacity is
currently underway at the Company's 17 acre facility, (acquired
from Mobil Oil, Inc.) in Dearborn, MI. As this increased
capacity comes on stream, it will allow the Company to attract
and pursue greater business opportunities.
January 5, 1998 - Rich Coast Reports Record Quarterly Revenues
Rich Coast Inc. is pleased to announce that revenues for the
Quarterly Period ended October 31, 1997 increased by 30% to
$642,912.00 vs. $491,203.00 in the previous comparable
period. This results in a per share loss of $0.01 vs.
$0.04. These results clearly indicate that a positive trend
towards higher revenues and ultimate profitability is
taking place. It is anticipated that the current Quarter,
ending January 31, 1998, will show further improvement
as evidenced by November revenues of $277,000.00, a new
monthly record. The Company is aggressively pursuing
the expansion of processing capacity at the facility
acquired from Mobil Oil. As this capacity comes on
stream in early 1998, it will lead to further revenue growth.
Additional information of these PR newswires can be found at
www.newsalert.com "KRHC".
Financial Data:
Revenues: $814,228 for 3rd quarter (Jan. 31, 1998)
Shares Outstanding: 16,560,000
Estimated Public Float: 10M
My interpretation of the technical position of KRHC indicates that this
stock is moderately undervalued. Its 52-week high is 25/32 and 52-week low
is 3/16. For the majority of the last half of 1997, KRHC was trading
between 0.2 to 0.3. During Dec. 97 and Jan. 98, the stock escalated in
price and achieved a new level of support at 0.4, and consolidated for
about 2 months. Since that time, it has been steadily moving upward in
price from its pre-established base of 0.40 to its current price of 11/16
(ask) to 5/8 (bid), where it is now in a breakout pattern.
Technical indicators support this interpretation and the current
appreciation in price, and the stock price is expected to continue
increasing in value or at least hold value. The strongest technical
indicators are the MoneyStream and BOP (Balance of Power). Both of these
indicators confirm the upward trend in stock price and confirm the bullish
pattern we are experiencing. The Stochastics oscillator does not appear to
have reached an overbought condition.
Time-Segmented Volume (TSV) and the Relative Strength Index (RSI) have also
been steadily rising for the past month. Confirmation of these bullish
signals were achieved early in February, about the time the record revenues
were reported on Jan. 31 and were later released on February 20. This
report released news that the company had record revenue growth for the 3rd
quarter. Stock volume increased as a result of this news release which
significantly improved the stock momentum.
The new level of support is about 5/8. Therefore, the stock can trade in a
new range above these prices at least for the next 1
to 3 months. |
