RDX Technologies RDX.v C$.19
Posted: Wednesday Nov 27 8:45:59AM 2013
someone gave me some links to CEO Danzik's prior companies. Pretty disturbing bankruptcy of an Aussie company in 2010. So I sold out this morning for a tiny profit. RDX may be onto something good but his behavior during the bankruptcy didn't inspire my confidence. I always knew he was optimistic but mix that with questionable ethics and I should find something else.
Posted: Tuesday Nov 26 1:03:46PM 2013
RDX will have growing pains. They are making money due to a complex formula regulated by the US government for Renewable Fuels. They have the technology to recover waste fats that can be turned into renewable energy. This waste byproduct is a new source of revenue for waste water processors and turns losing operations into money makers.
The risk is that the government changes the formula or the mandates for renewable fuel mixtures. And that RDX can finance additional purchases of existing waste water plants and convert them with their technology to renewable energy contributors. The purchase prices for the three initial plants seems to be reasonable because they didn't get any renewable energy income previously. Hopefully RDX can continue to buy and update small waste water operations across the country and make the plants accretive to eps fairly quickly.
I like the combination of waste water processing and renewable fuels. We'll see if the stock chart continues downwards or this is a permanent uptrend for RDX.v.
Posted: Thursday Nov 21 10:17:19AM 2013
I agree that the company's revenue has grown very nicely; however, once you back out the reversal of stock based payments plus those non-cash fair value adjustments/gains, income from continuing operations was slightly negative. Still a heck of a turnaround. The debt would bother me, but some people don't mind that sort of thing.
I only took a quick look, so I might have missed something...
Posted: Thursday Nov 21 10:07:43AM 2013
bought some RDX.v at .185. Turnaround story. Water treatment company for oil and gas drillers that has morphed into an industrial waste water treatment company that also supplies renewable fuels.
Q2 earnings came out today. Earned .006eps on 11+million gross revs, up from 6+million gross revs in Q1.
Sounds like they have finally turned it around.