How to understand Advanced Emissions Solutions Inc. (NASDAQ:ADES)?


Shares of Advanced Emissions Solutions, Inc. (NASDAQ:ADES) last traded at $9.99. (NASDAQ:ADES) performance year to date is 8.12%. The 200 day simple moving average is 11.68%. The 200 simple moving average (SMA) is considered a key indicator by traders and market analysts for determining the overall long-term trend. The price level in a market that coincides with the 200 SMA is recognized as a major support when price is above the 200 SMA or resistance when price is below the 200 SMA level.

Advanced Emissions Solutions, Inc. develops, offers and implements environmental technologies, equipment and specialty chemicals that enable coal-fueled power plants to meet emissions regulations. It operates in three principal business segments: Refined Coal, Emissions Control and CO2 capture. The company also offers dry sorbent injection systems to control SO2 and acid gases. It operates primarily in the United States along with its subsidiaries. Advanced Emissions Solutions, Inc. formerly known as ADA-ES, Inc., is based in Highlands Ranch, Colorado.

Advanced Emissions Solutions, Inc. (NASDAQ:ADES) has been in the news for all the right reasons. Recently, Advanced Emissions Solutions, Inc. (NASDAQ:ADES) announced the commencement of a modified Dutch Auction tender offer to purchase for cash up to 925,000 shares of its common stock, par value of $0.001 per share, at a price per share of not less than $9.40 nor greater than $10.80, for a maximum aggregate purchase price of $9,990,000. The closing price of the Company’s common stock as reported on the NASDAQ Global Market was $9.39 on May 5, 2017. The full terms and condition of the tender offer is discussed in the Company’s Offer to Purchase, dated May 8, 2017, and the associated Letter of Transmittal and other materials relating to the tender offer that are being filed today with the Securities and Exchange Commission (the “SEC”) are being distributed to stockholders.

The tender offer will expire at 12:00 Midnight, Eastern Time, on or about June 5, 2017 unless extended or withdrawn. The Company intends to fund this tender offer with cash on hand. On March 31, 2017, the Company had $28.4 million of cash and cash equivalents.

The Barchart Technical Opinion rating is a 24% Buy with a Strengthening short term outlook on maintaining the current direction. Longer term, the trend strength is Minimum. The market is approaching overbought territory. Be watchful of a trend reversal.

The Exponential Moving Average (EMA) is similar to a simple moving average (average price over a set period) but it utilizes a weighting factor that exponentially declines from the most recent data point (recent prices are weighted higher than oid prices). EMA analysis compares the short term (5 days and 13 days), intermediate term (20 days) and long term (50 days) EMA’s. The respective EMA’s will give bullish signals when trading above trailing EMA’s and below the current price and vice versa. EMA alerts include crossovers (i.e the 5 day EMA crosses above/below the 20 day EMA) and EMA convergencies (5 day EMA equivalent to 13 day EMA). The long term and short term EMA’s of 9.64 and 9.59 are lower than the current trading price suggesting a bullish pattern in both short term as well as long term. .

The relative strength index (RSI) is a momentum oscillator that is able to measure the velocity and magnitude of stock price changes. Momentum is calculated as the ratio of positive price changes to negative price changes. The RSI analysis compares the current RSI against neutral(50), oversold (30) and overbought (70) conditions. Alerts will inform you when stocks recede from oversold/overbought levels or breakthrough neutral (50). The current RSI is 61.15 suggesting a bullish price action.

Advanced Emissions Solutions, Inc. (NASDAQ:ADES) is all set to announce its earnings on May 08/b. As per Zack’s analyst ratings, Advanced Emissions Solutions, Inc. (NASDAQ:ADES) currently has an average brokerage rating of 1. On a scale of 1 to 5, a rating of 1 or 2 would indicate a buy, and a rating of 4 or 5 would signify a sell recommendation. A rating of 3 would indicate a hold on the stock. The consensus target price on (NASDAQ:ADES) is $18 with a high of $18 and a low of $18.

As such, while we believe Advanced Emissions Solutions, Inc. (NASDAQ:ADES) represents a compelling growth story exposed to several secularly attractive markets, it would be interesting to see how it fairs for long-term investors.

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