{"id":7162,"date":"2015-10-15T11:02:05","date_gmt":"2015-10-15T11:02:05","guid":{"rendered":"\/?p=7162"},"modified":"2015-10-15T11:14:53","modified_gmt":"2015-10-15T11:14:53","slug":"national-energy-services-inc-otcmktsnesv-hauls-its-way-up","status":"publish","type":"post","link":"\/articles\/national-energy-services-inc-otcmktsnesv-hauls-its-way-up\/","title":{"rendered":"National Energy Services Inc (OTCMKTS:NESV) Hauls its Way Up"},"content":{"rendered":"\n<p><img loading=\"lazy\" decoding=\"async\" style=\"float: right;\" src=\"\/\/s.hotstocked.com\/hotstocked.com\/repository\/articles\/91\/91645\/nesv.png\" border=\"0\" width=\"400\" height=\"178\" \/>At the end of January, National Energy Services Inc (OTCMKTS:<a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=NESV\">NESV<\/a>) was sitting at just under $2.50 per share. On Monday, it closed the session at just under $0.02. In other words, about 99.2% of the value evaporated in less than nine months. Why?<\/p>\n<p>If you open the latest 10-Q, you might be able to spot one of the problems. Here&#8217;s a summary of the figures:<\/p>\n<ul>\n<li>cash: $96,104<\/li>\n<li>current assets: $1,853,138<\/li>\n<li>current liabilities: $11,309,645<\/li>\n<li>quarterly revenues: $2,527,474<\/li>\n<li>quarterly net loss: $3,900,723 <\/li>\n<\/ul>\n<p>The second quarter of 2015 was a bit of a disaster for <strong><a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=NESV\">NESV<\/a><\/strong>. The management team explained in the 10-Q that due to the overall downturn in the oil and gas industry, their revenues have dropped by a whopping 43% on a year-over-year basis. Things do look better when you check out the figures for the first six months of the year, but the sales still aren&#8217;t enough to outweigh the hefty expenses which is a rather big problem. It&#8217;s not the only one, though.<\/p>\n<p>In April, when <strong><a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=NESV\">NESV<\/a><\/strong> filed its 2014 10-K, it said that a letter of intent has been signed for the acquisition of a Texas-based oil field maintenance company. The seven-figure revenues that you see above are the direct result of an acquisition of another entity called JD Field Services, and many people thought that a second equally successful daughter company would really give the financial statements a boost.<\/p>\n<p>Unfortunately, over the next five months, <strong><a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=NESV\">NESV<\/a><\/strong> gave absolutely no indications of closing the aforementioned deal. There were no press releases concerning it and the SEC filings failed to give any new information. As a result, quite a few people felt a bit misled.<\/p>\n<p>On September 21, the management team finally shed some light on the matter. They announced that the due diligence process had taken more than expected and said that they didn&#8217;t want to jump the gun and put out news before they have anything concrete. The press release says that the deal hasn&#8217;t been closed yet, but it hints that there might be some updates soon.<\/p>\n<p>Investors are particularly excited about the &ldquo;<em>upcoming updates<\/em>&rdquo; part. The message boards and social networks are now full of people who reckon that the closing of the acquisition is very near. Thanks to their enthusiasm, <strong><a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=NESV\">NESV<\/a><\/strong> logged a few heavy volume sessions and yesterday, it also bounced 50% to a close of just under $0.03 per share.<\/p>\n<p>If the stock supporters turn out to be correct and if <strong><a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=NESV\">NESV<\/a><\/strong> does complete the acquisition soon, the ticker might fly even higher. Whether that&#8217;s going to happen is for time to tell, however, and in the meantime, people contemplating a potential investment mustn&#8217;t forget one very important factor &ndash; dilution.<\/p>\n<p><strong><a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=NESV\">NESV<\/a><\/strong> has gone through quite a lot of it already. In December 2014, the company effected a 1 for 200 reverse split which means that the number of issued and outstanding shares at the end of last year stood <strong>at around 4 million<\/strong>. By the end of June 2015, it had grown to just under <strong>8 million<\/strong>, and that&#8217;s when the really serious stock printing started.<\/p>\n<p>On September 4, days before the filing of the latest 10-Q, the O\/S count was sitting <strong>at more than 17 million<\/strong>, but a few recent filings suggest that it&#8217;s much higher right now. On September 21, a person by the name of Jeffery James Krueger filed a Form 4 which informed us that he holds<strong> just under 3 million shares<\/strong>. The filing said that <strong>Mr. Krueger is owner of 10%<\/strong> or more of <strong><a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=NESV\">NESV<\/a><\/strong>&#8216;s outstanding common stock. A few days later, however, another Form 4 on his behalf appeared. It disclosed no sales of the aforementioned 3 million shares, but it said that<strong> he is no longer an owner of 10% of the company<\/strong> which, a quick calculation will tell you, means that the number of issued and outstanding shares should now be sitting at<strong> more than 30 million<\/strong>.<\/p>\n<p>As is often the case, one of the main reasons for the excessive stock printing lies with the numerous convertible notes that the company has issued over the years. The discounts range <strong>from 30% to 40%<\/strong> and we can see that some of the note holders have definitely taken advantage of them.<\/p>\n<p>This, by the way, also contributed to the massive crash <strong><a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=NESV\">NESV<\/a><\/strong> experienced during the first nine months of 2015. It could put pressure on the stock in the future as well.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>At the end of January, National Energy Services Inc (OTCMKTS:NESV) was sitting at just under $2.50 per share. On Monday, it closed the session at just under $0.02. In other words, about 99.2% of&#46;&#46;&#46;<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[1889],"class_list":["post-7162","post","type-post","status-publish","format-standard","hentry","category-news","tag-nesv"],"_links":{"self":[{"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/posts\/7162","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/comments?post=7162"}],"version-history":[{"count":0,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/posts\/7162\/revisions"}],"wp:attachment":[{"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/media?parent=7162"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/categories?post=7162"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/tags?post=7162"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}