The Overlooked Nuverra Environmental Solutions
Nothing like a name change to make the market forget about a previously hot stock. Back in May, Heckmann changed its name to Nuverra Environmental Solutions (NES) to more accurately reflect its focus on environmental solutions in the energy sector. The stock has done nothing but plunge since the beginning of June whether due to the sector weakness or the market losing focus on the 'new' company. Either way, the stock is trading at lows not seen since the revolutionary merger that combined Heckmann with Power Fuels back in the summer of 2012.
The company dedicated to the protection and enhancement of environmental solutions for the removal and disposal of restricted fluids primarily from shale drilling activities isn't exactly benefiting from the boom in production from shale. As environmentalists fret over the safety of the fluids used in fracking, Nuverra was suppose to benefit from the need to safely dispose of those 'dangerous' fluids. Unfortunately, the boom came to an end in 2012 and the stock only trades at a value of $730 million or less than 4x EBITDA estimates.
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Disclosures: Long CJES and NES. Please review the disclaimer page for more details.