OTCQX:HEOFF - Post by User
Comment by
Lazaroson Nov 15, 2018 6:32pm
75 Views
Post# 28983489
RE:RE:RE:RE:H2O to acquire Texas operation, maintenance firm
RE:RE:RE:RE:H2O to acquire Texas operation, maintenance firmThe UP acquisition doubled our share count and negatively impacted our margins. I know things aren't instant, but if they did the UP financing at a good price, it would have helped support the share price due to less shares outstanding. They didn't do that with UP. How many years do you think it will take for that acquisition to break even? How about the new acquisition?
Long term, they can shift all of their clients to PWT and Piedmont products, and hopefully some H2O Innovation hardware when it is time to upgrade the water infrastructure at the utilities. Over time, they can generate those higher margin sales. But they just made it much harder to add value to the share price due to the terribly low financing price and massive dilution. How does that make you feel as a shareholder?
What drives me crazy is that these guys could actually be profitable if they fixed their balance sheet!!