Rising EPA Standards Force Small Waste Disposal Companies to Think Bigger, Creating Opportunity for Investors Paying Attention

BONITA, CA – (NewMediaWire) – February 02, 2016 – Most investors are surprised to hear the waste management industry in the United States generates $50 billion worth of revenue per year, surely not National Waste Management Holdings, Inc. (OTCBB: NWMH), however. While most investors are stunned to learn there are more than 8000 businesses in the U.S. performing some sort of waste management service, National Waste continues snap them up one by one in very orderly fashion.

On average, numbers imply each of those smaller fragmented operations generate $6.2 million annually with garbage collection making up a good part of that revenue. Industry giants Waste Management (NYSE:WM) and Republic Services (NYSE:RSG), the two biggest names in the business, collectively generating $22.8 billion in sales each year. Ergo, most operations in the waste management industry are doing much less than the average amount of business.

For a long while, that wasn’t a problem; size neither helped nor hurt the smaller players in this land and labor-intensive industry. More recently, however, a regulatory paradigm shift in the waste management business has changed how all of these businesses must operate.

The SmallCap Network research staff believes this underestimated change will lead to significant investment opportunities in 2016, with companies that can manage the tougher standards — and lead other garbage disposal outfits that can’t handle the raised standards — poised to reward forward-thinking investors.

In simplest terms, waste collection is no longer a simple matter of gathering up trash and burying it. Though the bar has been rising for years, new standards put in place by the Environmental Protection Agency this year and last have put a serious strain on smaller waste management players who simply lack the scale or know-how to effectively meet the current and future waste-disposal requirements.

As an example, in February of this year, the EPA changed some of the definitions and standards of the Resource Conservation and Recovery Act (RCRA), which effectively forces any organization that produces a recyclable hazardous waste product to deliver that by-product to verified recyclers. That same law requires the recycler to prove its recycling process is legitimate.

In October of this year of this year, new laws concerning the disposal of coal ash went into effect. These new standards require landfills where coal ash is buried either line the pit to avoid the contamination of nearby groundwater, or simply stop using the site. Not all operators could afford to develop a lined facility.

Those new standards are just two of several news rules that have been put into place in recent years, and more of the same appear to be on the way.

And where the Environmental Protection Agency isn’t acting, individual states are. The state of Florida, for instance, in 2010 passed a law requiring 75% of its construction and demolition waste be recycled by the year 2020. As of the beginning of 2016, the state of Illinois will prohibit manufactured gas plants (MGPs) from being disposed of in general landfills, and must instead be handled exclusively by landfills permitted to receive such material. These permits, however, require a demonstrated level of expertise and a verifiable safe site.

Smaller waste management companies simply can’t handle the growing complexity of the business on their own. Together, however, it is possible for them to not only navigate but thrive in the modern era of waste disposal.

Enter National Waste Management Holdings, Inc. (OTCBB: NWMH), operator of a landfill in Hernando, Florida, specifically catered to the construction and demolition market — a highly-regulated sliver of the waste-disposal industry. In addition to the landfill, National Waste operates a dumpster-rental and roll-off service to a three-country market in and around Hernando, which even performs certain recycling services when possible and appropriate.

More importantly, in light of the ongoing changes in the regulatory environment, National Waste Management Holdings is also now the owner of waste-processing and disposal facility in Bainbridge, New York, as well as a new owner of a dumpster-rental drop off and pick-up service in Odessa, Florida, approximately 60 miles away from Hernando.

The two acquisitions in the meantime are just a microcosm of the plans National Waste Management Holdings CEO Louis Paveglio and President Jeff Chartier have already made to capitalize on the changes materializing within the industry… changes that favor scale, and the sharing of resources and/or know-how. NWMH has already noted it plans to initiate several more acquisitions of small waste-management businesses over the course of the next three to five years.

It’s certainly the right time and right environment for such a strategy.

For more on National Waste Management Holdings, visit the company’s website (www.nationalwastemgmt.com/) or the SmallCap Network NWMH research hub (www.smallcapnetwork.com/National-Waste-Management-Holdings-Inc/s/quote/p/s/NWMH/)

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