Dallas, Texas 07/07/2015 (Financialstrend) – Vertex Energy Inc (NASDAQ:VTNR), the environment services and industrial waste recycling company was recently degraded by leading analyst firms. The consensus recommends ‘strong sell’ of shares of this industrial waste management company. The rating changes were announced after the company’s earnings report on May 18, 2015. It reported EPS of $0.60, missing its analysts’ estimates by $0.42.
Bullish equities research analysts have recommend a buy for this stock. Others have only lowered price target of Vertex Energy Inc (NASDAQ:VTNR).
Though the first quarter was all about losses, the second quarter is expected to be even trickier. The players of the used motor oil segment have felt the impact of the changes in oil prices. Much of the quarter was impacted by the losses and additional loans the company had to make to complete its acquisitions. These included the Omega purchase as well as the Heartland transaction which was put in place in October of 2014.
Vertex Energy Inc (NASDAQ:VTNR) expertise in managing industrial waste comes from its patent-protected technology platform for extracting impurities from used oil resources. The technology has been very successful in increasing the ‘value’ of the end product.
The lack of consistent performance by the company has definitely had an impact on the ratings by analysts firms. As the experts analysts the risk and the weakness of the company against its cash flow and over all upside against market forces, it appears that VTNR is on quick-sand. The twin impact of its loan and guarantee agreement, which is a massive, in comparison to its modest cash and asset standing; as against the growth of many of its peers does have a negative impact when seeking investor funds. Though its technology is patented and ensures that the value at the end of the waste management lifecycle is enhanced, it lacks in its market positive aspects. Its current performance as against its assets does not give these industrial waste management technologists much of bullish ride in the coming trading sessions.