Feature Article - Midwest Energy Emissions Corp: A Coal Complex "Pain Trade" Beneficiary
June 28, 2016
By Dallas Salazar, Atlas Consulting
Midwest Energy Emissions Corp (OTCQB: MEEC) is an interesting coal-derivative play that should be able to benefit in a big, big way from the current "pain trade" taking place in the Coal Complex; that is, the Coal Complex's continued pain should be MEEC's continued gains. MEEC, for those unfamiliar, provides a unique, patent-protected "mercury emissions capture technology" to the Coal Complex - that is specifically to coal-fired power plants - which enables plants to achieve and maintain compliance with mercury emissions regulations. The technology, Sorbent Enhancement Additive Technology (or "SEA" ™), does this at a substantially lower cost than current alternative technologies. Essentially, this is the investment thesis at MEEC: that it has a better technology (i.e. more efficacious, is hardware based, is materials base, and is proprietary process and know how enabled) and that it can offer this technology at a lower cost to actors within the Coal Complex that must comply with the regulations.
With historic coal-fired power plant regulations becomes de facto law with a recent supportive ruling by the U.S. Supreme Court, the Supreme Court on June 17 th, 2016 declined to hear an appeal from 20 states over an EPA regulation known as "MATS", the likelihood of MEEC realizing this investment thesis has done nothing but become higher in visibility. This has started to be reflected in MEEC's equity price. MEEC currently trades on the 52-week highs.
And this is why I think now is an appropriate time to put the MEEC story on microcap investor radar screens - I think MEEC, despite my concerns (and I have a few which I'll breakout), could be on the verge of a major move higher (its equity) OR a total company monetization event. The latter, it should be noted, shouldn't be factored into investment consideration at this point. All told though, MEEC looks ready to lean into an industry that's being bullied into regulation compliance and it happens to have the most cost effective solution for helping meet compliance.
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Originally posted on Seeking Alpha, June 24, 2016