AI
Sunday, August 23, 2015 11:21:16 PM
DD Compilation for NESV
Recent Significant News Releases:
1)National Automation Services Announces Name Change and Increase in Authorized Shares
LAS VEGAS, NV--(Marketwired - Jul 15, 2015) - National Automation Services, Inc. (the "Company") (OTC PINK: NASV), a growing oil and gas services company, today announced that, effective July 15, 2015, its name changed to National Energy Services, Inc., and its stock symbol changed from "NASV" to "NESV" (OTC PINK: NESV). In addition, the Company increased its authorized number of shares of common stock from 75,000,000 to 150,000,000.
The Company's common stock has been assigned a new CUSIP number of 63581T101, in connection with the name change. Outstanding stock certificates will not be affected by the name change and will not need to be exchanged. All stock trading, filings and market-related information will be reported under the new corporate name and trading symbol.
Robert Chance, President and Chief Executive Officer, commented, "We are pleased to announce the name change for the Company as we feel that our new name represents a better alignment of our focus in the Oil and Gas Industry. At the same time, the increase in our authorized shares of common stock is intended to provide us with added flexibility in effecting any future acquisitions and financings."
http://www.marketwired.com/press-release/national-automation-services-announces-name-change-and-increase-in-authorized-shares-otc-pink-nasv-2038651.htm
2)National Automation Services Appoints Additional Independent Directors
LAS VEGAS, NV--(Marketwired - Jun 9, 2015) - National Automation Services, Inc. ("NAS" or "Company") (OTC PINK: NASV) a growing oil and gas services company, today announced the appointment of two additional directors, John Merkel and Brent Robbins.
John Merkel, an engineer, has held upper management positions in many oil and gas production companies over his 25 plus year career. Since 2012, Mr. Merkel has served as a Drilling Superintendent for Triangle Petroleum Corporation, a vertically integrated energy company, where he oversees all aspects of well site drilling. Prior to that from 2011 to 2012, Mr. Merkel served as Wellsite Supervisor for Fidelity Exploration & Production Company, an oil and gas company that is part of the MDU Resources Group, where he supervised onsite drilling operations. From 2006 to 2011, Mr. Merkel served in a variety of drilling operations/engineering roles for Anardarko Petroleum Corporation, one of the largest independent exploration and production companies. Prior to this, Mr. Merkel has served in supervision/engineering roles with Northwestern Energy and Montana Power Company. Mr. Merkel holds a B.S. and M.S. in Petroleum Engineering from Montana Tech.
Brent Robbins, a CPA, brings over 25 years of accounting experience in the oilfield, construction, banking, securities, insurance, technology, entertainment and healthcare industries. Since 2010, Mr. Robbins has been principal of his own accounting practice where he specializes in tax planning and preparation, providing CFO services, and business consulting. Prior to that, Mr. Robbins served in a variety of accounting roles including serving as tax manager, CFO for hire and principal of an accounting practice. Mr. Robbins began his accounting career at KPMG in the tax department. Mr. Robbins obtained a B.S. in Accounting from Brigham Young University and graduated from the University of Utah with a Masters of Professional Accountancy in Taxation.
Robert Chance, President and Chief Executive Officer, commented, "We are pleased to welcome John Merkel and Brent Robbins to the NAS Board which follows the recent appointment of John McKeachnie. They both bring a wealth of experience and knowledge to the NAS team. We believe their contributions will greatly benefit the Company and shareholders as we strive to meet our strategic goals of building the Company, with aspirations of up-listing to a national securities exchange in the near future."
http://www.marketwired.com/press-release/national-automation-services-appoints-additional-independent-directors-otc-pink-nasv-2027988.htm
3)National Automation Services Retains Firm to Provide Advisory Services in Connection With Effort to Obtain a Listing on a National Stock Exchange
LAS VEGAS, NV--(Marketwired - May 29, 2015) - National Automation Services, Inc. (OTC PINK: NASV) today announced that it has retained Donohoe Advisory Associates LLC of Rockville, Maryland to advise and assist the Company in its efforts to obtain a listing on a national securities exchange.
Donohoe Advisory, founded by David A Donohoe, Jr. in 2004, has successfully represented dozens of companies seeking to list on U.S. stock exchanges. Prior to forming Donohoe Advisory, Mr. Donohoe spent nine years with The NASDAQ Stock Market where he ultimately served as Chief Counsel in the Listings Qualifications Department. Bruce Poignant, who serves as a Senior Consultant for Donohoe Advisory, will also be working closely with the team. Mr. Poignant spent more than 20 years in the Exchange space, working at both the American Stock Exchange and the NYSE. Over the past 10 years, he was a member of capital markets groups at both the AMEX and NYSE working with numerous companies to help them navigate through the listing process. Additional information relating to Donohoe Advisory is available at www.donohoeadvisory.com.
Bob Chance, President and CEO, stated, "We are very pleased to be working with Donohoe Advisory Associates with their vast experience in the Markets. We look forward to their advice on strategic positioning and counsel on seeking a national listing for our Company, which has been a long term goal of ours."
http://www.marketwired.com/press-release/national-automation-services-retains-firm-provide-advisory-services-connection-with-otc-pink-nasv-2024546.htm
4)National Automation Services Reports 2014 Financial Results Earnings per Share of $0.08 on Revenue of $17,614,000
LAS VEGAS, NV--(Marketwired - Apr 16, 2015) - National Automation Services, Inc. ("NAS" or "Company") (OTCQB: NASV), a growing oil and gas services company, today announced financial results for the year ended December 31, 2014.
2014 Highlights Include:
Revenue of $17,614,000
Gross margin of $3,130,000
Net income of $312,100
Earnings per basic of $0.08 /diluted share of $0.06
Customer mix in 2014 was approximately 60% natural gas and 40% oil producers
Diversified oil producing customers are flexible, lower overhead operators that continue to operate while oil prices fluctuate
Immediate and long term outlook for natural gas production is very promising
NAS is evaluating strategic acquisition opportunities emerging in the current market of relatively lower oil prices
"We are very pleased to have concluded our first year of operating an acquired oil and gas services business, and more importantly we have done so profitably. We believe this exemplifies NAS's ability to identify, acquire, and integrate subsidiaries that are both a strong strategic fit and add to our bottom line. In management's opinion, and based on standard industry valuation metrics, NAS has delivered superior operating and profit performance relative to the Company's current market capitalization," stated NAS CFO Jeremy Briggs.
http://www.marketwired.com/press-release/national-automation-services-reports-2014-financial-results-earnings-per-share-008-on-otcqb-nasv-2010464.htm
5)National Automation Services, Inc. - 2015 Business Strategies
LAS VEGAS, NV--(Marketwired - Mar 2, 2015) - National Automation Services, Inc. ("NAS" or "Company") (OTCQB: NASV), an Oil and gas services company, announced that it has updates to investors on the changes in business planning for the remainder of the 2015 calendar year.
Within the domestic oil and gas industry, the recent decline in oil prices has created challenges for some companies, while creating opportunities for others. NAS is aggressively capitalizing on the opportunities as recently reported, as a dominant force in the Rocky Mountain region marketplace, and have had record setting months. This is directly attributable to our diverse customer base.
Moreover, a significant number of our current customers, about 60% are Natural Gas ("NG") producers, which have not experienced the price valuation decline magnitude that oil producers have experienced. Indeed, the intermediate and long term outlook for domestic NG production is very promising. The domestic supply has been bottled up with no vehicle to process the gas into liquid natural gas ("LNG") for export to world markets. However, many companies are about to change this dynamic.
A good example of this change is Cheniere Energy Inc. a Houston, TX-based company. In 2013, the Department of Energy approved Cheniere Energy's Sabine Pass Liquefaction terminal in Cameron Parish, LA, which will ship up to 2 billion cubic feet of gas per day starting this year. Lithuania announced this past Saturday it had just signed a trade agreement to buy liquefied natural gas from Cheniere Energy's new export facility, in a move aimed at reducing the European Union ("EU") and Baltic States heavy dependence on Russian gas deliveries. This trend by the Baltic States and EU is expected to significantly increase over the next year.
Cheniere also has plans to open a new export terminal in Corpus Christi, TX that could be operational by 2017. Dominion Resources Inc., Chevron Corp., Veresen Inc., and KBR Inc. are among other leaders, who are developing and constructing new LNG Plants across the U.S. for delivery abroad. The LNG Plants currently under construction together with others in the permitting process are expected to total approximately two dozen nationally, all targeted for exports from the U.S. to markets abroad. As much as 8.2 billion cubic feet per day of U.S. liquefied natural gas is expected to be delivered to consumers worldwide by 2018.
Bob Chance, President and CEO of National Automation Services, commented on the Company's future plans, "In light of these new developments in the Oil and Gas sector, we reported in June of 2014 that we had signed purchase and sale agreements with two additional companies to be added to the NAS portfolio, which were set to close in the first quarter of 2015. Although we are still very interested as both are exceptional companies, we have not committed to a final closing because of the dynamics in play that the energy sector is experiencing with low oil prices.
"The current environment of slumping oil prices and the increased potential natural gas has presented through the construction of new LNG export facilities nationwide, has prompted management and the Board to take another look at our current strategies in comparison to certain emerging opportunities that were not available 6 months ago. We are reviewing new opportunities every day, and our focus is to bring the most value to every dollar spent on our growth strategy. It is exciting to see the magnitude of change any one of these new opportunities could bring to NAS in the very near future."
http://www.marketwired.com/press-release/national-automation-services-inc-2015-business-strategies-otcqb-nasv-1996312.htm
6)National Automation Services, Inc. - Announces Engagement of New SEC Counsel
LAS VEGAS, NV--(Marketwired - Feb 3, 2015) - National Automation Services, Inc. ("NAS" or "Company") (OTCQB: NASV) a small, but rapidly growing oil and gas services company announced that it has engaged the services of Sichenzia, Ross, Friedman, Ference, LLP located at 61 Broadway, New York, NY 10006, as our new securities counsel.
This engagement of new SEC counsel has been anticipated for some time to better align the Company for an upcoming up-list to NASDAQ or to the NYSE MKT Exchange.
Sichenzia, Ross, Friedman, Ference, (SRFF) a boutique law firm with a worldwide presence, was selected because of their extensive experience in securities and corporate law. The firm provides experienced, professional representation in all matters involving the securities industry, as well as in all general corporate and litigation matters. SRFF's clients range from start-ups to established, listed companies; they include private and public corporations, partnerships, broker-dealers, bank-affiliated broker-dealers, investment advisors, registered personnel, public and corporate customers and investors, partnerships and other entities. The firm also advises institutional investors on transactions involving complex securities law considerations.
Andrea Cataneo, a Partner of SRFF, is NAS's primary attorney directing her team on business and securities matters during the pre and post up-listing process. The National Investment Banking Association ("NIBA") recently named Andrea as a director. NIBA is a national trade association of regional and independent brokerages, investment banking firms, fund managers and capital market service providers and SRFF has worked closely with NIBA in the past several years to develop a network of investment and capital resources for the firm's clients.
NAS President and CEO Bob Chance stated, "We are fortunate to have the opportunity to work with such a prestigious law firm and in particular, Ms. Cataneo. After a rigorous selection process of the many firms recommended to us, our Company chose Sichenzia, Ross, Friedman, Ference because of the vast services they can provide us, not only for the up-listing and SEC reporting responsibilities, but also the ability to help us expand our network to an elite number of brokerage and investment banking firms which is important to small growing companies such as NAS. We are very happy to welcome Andrea and Sichenzia, Ross, Friedman, Ference to our team as I know great things will be born out of this relationship."
http://www.marketwired.com/press-release/national-automation-services-inc-announces-engagement-of-new-sec-counsel-otcqb-nasv-1988230.htm
7)JD Field Services Announces Banner December in Gross Revenues
LAS VEGAS, NV--(Marketwired - Jan 28, 2015) - National Automation Services, Inc. ("NAS" or "Company") (OTCQB: NASV) a small, but rapidly growing oil and gas services company announced that it projects that its subsidiary, JD Field Services ("JD"), is presently experiencing phenomenal growth, despite the current environment in the oil and gas sector. December 2014 gross revenues are expected to be a robust $2.5 Million, compared with $1.6 Million during the same period in 2013, and we project that this increased activity has carried into January for the first quarter of 2015.
Management believes this significant increase is attributable to a number of factors, including: (i) market diversification, with over 30 active clients in the Wyoming, Utah and Colorado area's being served; (ii) the addition of new heavy hauling equipment in 2014 such as the two 275 ton cranes and specialty outfitted tractor trailers to accommodate the three rig moving crews servicing these clients; and (iii) the 15 year reputation JD has had with large and small producers as the preferred vendor of these services.
Jason Jensen, General Manager of JD and a Director of NAS, commented on the current and future outlook of the Company: "JD has not only survived the recent downturn in oil prices, but we are actually thriving. Many of the smaller producers we serve developed budgets to include oil prices at or below $50 per barrel. Having so many independent producers in our portfolio who have followed this strategy, even when oil was above $100, we are prepared to weather the storm of low crude prices. We also have a mixed bag of producers who do not target oil but primarily drill for natural gas ("NG"), who have not been affected by the recent downturn. A rough estimate of oil vs. natural gas production by the operators we serve is 60% NG and 40% oil mix."
Mr. Jensen added, "If oil prices remain low, we very well may see a flat line in growth of the oil producers in 2015, but we do not expect a decline in business, because our focused approach, much like the strategy employed by smaller producers, of budgeting for $50 oil per barrel. The larger producers, with excessive operating overhead, will likely decline, whereas, we have the flexibility to adjust to the market by reallocating assets to NG and to producers with lower overhead that can operate under a benchmark of $50 per barrel. We also recognize an opportunity in this environment to grow our operations organically by acquiring assets, employees and clients from competitors who are not faring as well as we are because of a lack of market diversification. Competitors who traditionally only serviced one to two large producers are suffering due to market concentration, and this environment further creates demand for our services, while enabling us to acquire the talent needed to give our clients the best possible service."
Jenson continued, "We are fortunate to be surrounded by ingenuity in a declining climate. One of JD's clients, an independent oil company just informed JD they are adding two new rigs while others have succumbed to rig stacking while waiting out the price downturn until prices improve. We see this as a time of opportunity, not despair, as the media may want others to believe. We have positioned NAS/JD to take advantage of organic growth opportunities that were non-existent a year ago, while keeping a close eye on acquisition opportunities that may arise during this declining period. We are seeing unprecedented opportunity to continue our growth by acquisition strategy. Backed by the financial strength of our investment banking partner, together with the operating prowess of JD field services, we are eminently positioned to make new acquisitions at significant discounts from much higher valuations just months ago."
Management is unable to explain why investors have not purchased the Company's stock at the current price/earnings ratio level, caused by the recent drop in the price of NAS common stock which has followed the recent trend in the oil and gas industry. Bob Chance, CEO for NAS has stated, "This is a clear case of the baby being thrown out with the bath water. The Company estimates that it is currently generating net income at an annual pace of about $3.9 Million. With only 4.5 Million shares outstanding, the Company estimates that net income may be $0.86 per share. At current price of NAS stock, we estimate that we are currently selling at a bit over 1X earnings in a sector that typically sells at a higher multiple of earnings." As we open new channels and move closer to our upcoming move to NYSE MKT, we believe that the greater investment community will hear our story and recognize what we believe to be our true value."
http://www.marketwired.com/press-release/jd-field-services-announces-banner-december-in-gross-revenues-otcqb-nasv-1986672.htm
8)National Automation Services, Inc. -- Letter to Shareholders
LAS VEGAS, NV--(Marketwired - Dec 15, 2014) - National Automation Services, Inc. ("NAS") (OTCQB: NASV) a small, but rapidly growing oil and gas services company has issued this informational letter to National Automation Services shareholders, which does not constitute an offer or invitation to sell, purchase or subscribe for any securities, or the solicitation of an offer to buy or subscribe for securities, in any jurisdiction and is not a prospectus as defined by the US Securities and Exchange Commission.
In a statement written by Robert Chance, CEO of National Automation Services:
To our most valued Shareholders
Let me begin by saying, WOW WHAT A YEAR! 2014 has seen the culmination of all the blood, sweat and tears our team has exuded over the last few years. All of our dreams and aspirations have resulted in what we now see as National Automation Services. From our completed acquisition of J.D. Field Services to our Purchase and Sale agreements with Devoe Contracting in the Denver Basin of Colorado and MonDak Tank of Williston, ND, (both of which we anticipate, but cannot guarantee, closing early next year) to our taking steps to expectantly up list to the NYSE Markets Exchange (formerly known as the American Stock Exchange), we are on the cusp of unprecedented success.
Acquisitions - J.D. Field Services has won prestigious awards in the oil and gas industry and we believe it will see continued growth in 2015 and beyond. When we factor in the soon to be completed acquisitions of Devoe and MonDak, Management contends that the projected growth for NAS is absolutely incredible. And the best is yet to come! We have precisely, and sometimes painfully, positioned NAS to be one of the companies that represent the future of oil and gas production in the United States. We are building a conglomerate which will, when completed, be able to offer an all-inclusive servicing solution for oil and gas producers in the United States. Each of the companies in the NAS portfolio has and will have a series of products and services which work synergistically with those of the other companies. NAS has no plans to rest on its proverbial laurels. Not now, not ever. We are far from done building your company.
Industry - Some of our shareholders have expressed concern over what effect, if any, the recent fall in oil prices is going to have on our business and share price. Oil prices have dropped about 40% since peaking in June causing a sharp sell-off in traditional oil and gas shares and consequential drops in share prices. We believe that this is panic selling and is inconsistent with the global long-term underlying trends now in play in the oil & gas industry. On the contrary, the U.S. oil and gas industry is embarked on an unprecedented growth trajectory and National Automation Services is positioned to ride the wave. Moreover, with fuel being a significant operating cost for JD Field Services, the drop in fuel prices, primarily diesel, is, on pour opinion, adding profit to JD's bottom line.
According to the US Energy Information Administration, on November 27th, 2014 the wholesale spot price per gallon for Ultra-Low Sulphur No. 2 Diesel Fuel on the US Gulf Coast was $2.265 per gallon. On the same day, the spot price for Crude Oil at WTI in Cushing, Oklahoma was $75.74. One year earlier, these prices were $2.96 for diesel fuel and $92.05 for Crude Oil. The prices peaked to $3.079 on February 20th, 2014 for diesel fuel and $107.95 on June 20th, 2014 for crude oil. From their 2014 high, the wholesale price of Diesel Fuel is down 26.5%, making for a drastic reduction in one of JD Field Services highest expense categories, fuel costs. We believe that this translates to a direct and immediate improvement in bottom line profits, without causing any recession of income.
In the same timeframe, Natural Gas has seen increases in price. From its low of $1.95 per Million Btu in 2012 we have seen a steady ascent in price throughout the last two years to $3.78 per Million Btu for October 2014, according to Henry Hub Natural Gas Spot Price. We contend that this is good for our Company because our current business with operators, as they switch over, will reduce transportation, per diem, and other cost of sales items improving our profit margins, while also increasing sales. Moreover we believe that long-term demand for U.S. natural gas is likely to grow as new refining and transport facilities currently under construction come on line.
So in the short term, the net effect of lower oil prices and steady natural gas prices will, in our opinion, have a positive impact on both the top and bottom line of National Automation Services.
Moreover, oil and gas prices are cyclical and U.S. producers have their eye on the long ball. 2015 global demand for oil is, to pour knowledge, projected to be 94.1 million barrels per day, which will outstrip 2015 global projected supply of 92.9 million barrels per day. This should put the brakes on falling oil prices and potentially reverse the trend.
NYSE Markets Exchange - While change can be deemed unpleasant for some, this is a change that we all can agree on. Currently the Company is represented on the OTC Markets (Over the Counter) Exchange. While this exchange is perfect for many companies, we feel, and shareholders have agreed, that the future of NAS lies on another exchange. In partnering with our New York based Wall Street investment banker, we have had a tremendous amount of assistance in our quest to move to another exchange. Our exhaustive investigation has revealed that the most successful path for NAS will be to move to the NYSE Markets Exchange (formerly known as the American Stock Exchange). While this is a very aggressive goal, feedback from shareholders has told us that you want it to happen. The boldest example of this is when you authorized the company to enact a sizeable stock re-capitalization in order to be better positioned to qualify for the price point required of a higher exchange.
The Future - If only foresight was as clear as hindsight, we'd all have won the Lottery and would never want for anything! Unfortunately that is not the case, so while we continue on the journey forward, we are certain of one thing, there will be more than our fair share of adversities but we will overcome and make NAS the best company possible. We look forward to 2015 and expect, but cannot guarantee, that we will once again add to our portfolio of companies. We will continue on our path and create a conglomerate of companies each interwoven, feeding off each other's strengths and reinforcing any weaknesses. From the bottom of my heart, THANK YOU. Without the support of our shareholders none of this could come to fruition. Each and every member of the NAS team is truly thankful that we have the support and dedication of our shareholder base, and will move forward with one goal in mind: Increase shareholder value. Have a Happy Holiday Season!
Sincerely yours,
Robert W. Chance
President/CEO
National Automation Services
http://www.marketwired.com/press-release/national-automation-services-inc-letter-to-shareholders-otcqb-nasv-1976777.htm
9)National Automation Services, Inc. Announces 1 for 200 Reverse Stock Split
LAS VEGAS, NV--(Marketwired - Dec 11, 2014) - National Automation Services, Inc. ("NAS") (OTCQB: NASV), a small, but rapidly growing oil and gas services company, has approved a reverse stock split of NAS's outstanding shares of common stock at a ratio of 1 for 200. The reverse stock split, previously approved by the holders of the majority of the shares of common stock, is expected to be effective on December 11, 2014 (the "Effective Date").
Accordingly, and at the Effective Time, every two hundred issued and outstanding shares of common stock of NAS will be converted into one share of common stock of NAS. In addition, at the market open on December 11, 2014, the common stock will be assigned a new CUSIP number: 632554 200. In connection with the Company's reverse stock split, the Financial Industry Regulatory Authority ("FINRA") has assigned the Company a new stock symbol, NASVD. The Company's stock will be quoted as NASVD for twenty business days after the Effective Date, and thereafter, the trading symbol will be NASV (OTC Markets).
As a result of the reverse stock split, the number of outstanding shares of NAS's common stock will be reduced from approximately 788,196,454 shares of Common Stock to approximately 3,940,983 shares. The number of authorized shares of common stock was reduced from 1,000,000,000 to 75,000,000 and 10,000,000 shares of preferred stock was authorized, the designations, rights and preferences of which will be determined by the Board of Directors.
Jeremy Briggs, CFO of the Company, said, "The Company has worked hard to get to this point in passing another milestone in our recapitalization efforts, and business strategy. I appreciate all the hard work of our team and the patience of our shareholders. The Company is moving in the right direction for our future growth."
All fractional shares will be rounded up and each shareholder will receive new certificates evidencing their post-reverse split shares if and when they present their certificates to the transfer agent. Current stock certificates may be exchanged for new certificates by contacting the Company's transfer agent, Worldwide Stock Transfer, LLC at Worldwide Stock. The reverse stock split will apply to all of NAS's outstanding shares of common stock and therefore will not affect any stockholder's relative ownership percentage.
10)National Automation Services, Inc. Announces First Acquisition
LAS VEGAS, NV--(Marketwired - Feb 28, 2014) - National Automation Services, Inc. (OTCQB: NASV), announced today it has executed its first acquisition.
On Monday February 24th, 2014, NAS completed the purchase of JD Field Services and its subsidiary have over 100 employees with a three year historical average of sales in excess of $24,000,000 and estimated $19,000,000 in assets. They are a mid-sized service provider (providing services such as Roustabout, water services, rig haul, and trucking services) to the oil and gas industry operating in the Rocky Mountain region and North Dakota shale play region. An 8-K was filed with the SEC on Tuesday February 25, 2014 with all details relating to the purchase agreement.
In a statement by Jeremy Briggs, CFO for NAS: "JD Field Services, our first acquisition of many planned, has been the product of NAS's restructuring which began in early 2012. The road getting to this point has been long, but we have finally arrived at our first destination which is JD. JD will continue to deliver quality service to their clients while NAS will simply be the Parent Company focused on helping JD make strategic acquisitions that will allow them to increase services to their clients. We are very excited about the synergies between the two Companies and look forward to working closely with them in the future."
http://www.marketwired.com/press-release/national-automation-services-inc-announces-first-acquisition-otcqb-nasv-1883973.htm
Excellent Articles on NESV (written over a year ago)
1)http://seekingalpha.com/instablog/4960551-wall-street-resources/3119855-national-automation-services-has-3x-return-potential
National Automation Services Has 3x Return Potential 2 comments
Aug 1, 2014 9:01 AM | about stocks: NASV-OLD
National Automation Services has 3x Return Potential
We recently had a chance to speak with Mr. Robert Chance, CEO of National Automation Services to get an update on his company. National Automation Services, Inc. (OTCQB: NASV) is a public holding company that is focused on the acquisition and integration of private companies in the billion dollar oil and gas services sector. Management's end game is to turn NAS into a large vertically integrated energy services organization that will be a large and growing beneficiary of the domestic energy boom. The acquisition targets must meet management's strict underwriting investment hurdles, including track records of long term, stable, and profitable operations. Additionally, they must be accretive to shareholder value, offer synergies (providing additional revenue streams and cost savings) and be geographically compatible with the other wholly owned subsidiaries. The other significant benefit to be recognized from this rollup strategy is the private-to-public multiple expansion that NAS would capture.
Once acquired, each wholly owned subsidiary will operate as its own entity with existing management retained. This allows the Company's management to focus on maintaining quality while increasing current levels of revenues and profitability. Each subsidiary provides their financials to NAS and the Company will make site visits to ensure companies are in compliance for reporting and monitoring purposes.
Deals
In June 2014, the Company announced the completion of its first acquisition, JD Field Services, in an all-stock deal and debt assumption. JD provides oilfield services to the oil and gas industry primarily focused around those activities that are related to the drilling, operation and maintenance of the well-site. JD is licensed in all states west of the Mississippi River including Alaska to do trucking, but is focused primarily in the Rocky Mountain Region. Oilfield services provided include heavy haul, water haul, and rig moving services as well as equipment, supplies, and specialty long hauling services. JD also provides oil and gas equipment rental services, hot shot, roustabout services and construction site development services. JD also operates a fabrication division that builds special-order oil and gas equipment and trucks for customers.
JD Field Services has approximately 130 employees and a three year historical average of $24 million in annual gross revenues, 2013 EBITDA of approximately $5.7 million, and net assets valued at around $7.5 million.
The Company is currently working on two additional acquisitions, having signed purchase and sale agreements with Devoe Construction and MonDak Tank, Inc. Devoe was recently awarded the Prestigious Mercury top 100 fastest growing private companies in Colorado. With more than $1 billion being spent on infrastructure in the Denver-Julesburg Basin, this area is primed for growth. MonDak is located in in Williston, North Dakota, right in the epicenter of the Bakken and Three Forks Shale play. MonDak is a widely respected contracting outfit in their field and have an excellent management team that will continue on with NAS after the purchase. The Company expects to finance these acquisitions with cash.
According to the Company's initial unaudited review of Devoe and MonDak's books, they are reporting 2013 revenues of $15 million and $7.1 million and EBITDA of $2.2 million and $2.2 million respectively. Together with JD, the parent company would have reported 2013 revenues of $46.1 million and 2013 EBITDA of $10.1 million.
Future Activity/Deal Flow
Additionally, the Company expects to continue to add to its acquisition pipeline, with four more additional acquisitions over the next 12-18 months funded with a combination of cash, debt, and stock. According to management, some of these acquisitions may be significantly larger than the ones currently on the table. In addition to the expected organic growth from all wholly owned subsidiaries, the Company fully expects to generate additional sales and cost savings via synergies provided by the vertically integrated structure. Management intends to reverse split the stock 200-1 (maximum) and uplist to the NYSE MKT by the first quarter 2015.
Funding
The Company recently announced that it has entered into a five year $10 million (straight debt facility) agreement with a National Commercial Finance Company facilitated by Wellington Shields out of Manhattan. Six million dollars will be used to retire JD Field Services obligations, leaving the rest for working capital and corporate uses. Management indicated that Wellington Shields has committed to providing $30 million in debt and $30 million in equity to finance additional acquisitions.
Investment Opinion
Shares of NASV currently trade at $0.032 per share on the OTCQB, with 751,987,293 shares outstanding, making a market capitalization of $24,063,593. Holding the market cap constant, post a 200-1 reverse split, this share count would equate to 3,759,936, or $6.40 per share (exceeding the $5.00 minimum price to list on the NYSE MKT).
If we take a look at a few publically traded comps in the oil and gas service sector, we can try to size up where NASV stands. For instance, one of our comps, Nuverra Environmental Solutions, Inc. (NYSE: NES) provides environmental solutions for unconventional oil and gas exploration and production, including the delivery, collection, treatment, recycle, and disposal of restricted environmental products used in the development of unconventional oil and natural gas fields. On an Enterprise Value (NYSE:EV)/revenue multiple, shares of NES trade at 2.02x. GreenHunter Resources (NYSE MKT: GRH) provides hydraulic fracturing services, as well as fluids handling, hauling, and barging services. On an EV/revenue multiple, shares of GRH trade at 3.49x. For this purpose, we can take the average of our two comps to arrive at a multiple of 2.76x. Using historical revenue numbers for JD and the other two companies to be acquired; we arrive at an enterprise value of $127.2 million, which assuming net debt of $17 million gives us a market capitalization value of $110.2 million, or $29.30 post reverse split. In our view, this means that shares of NASV currently trade at a 78% discount to historic value, with no accounting for future organic growth, synergistic cost savings or growth via future acquisitions. Assuming management is able to successfully execute on its future rollup strategy and uplist to the NYSE, we believe that NAS, after acquiring an additional four undisclosed companies and integrating them into the parent, should approach $200 million in market cap by the end of 2015.
Paul Silver
2)http://www.baystreet.ca/viewarticle.aspx?id=418746
National Automation (NASV) Partners with Wellington Shields - Expansion Through Acquisition
[ACCESSWIRE]
National Automation Services, Inc. (NASV), Partners with Wellington Shields
Expansion through Acquisition. Literally overnight NAS becomes a $46.3 million grossing company in the Oil and Gas Services Sector with 3 acquisitions and 5 locations in the Midwest. The following link shows all current locations http://investorshub.advfn.com/uimage/uploads/2014/8/4/lqhvgNASV_all_JD_locations_8inch.jpg
Also as previously stated by NAS in previous press releases, NAS is in negotiations with several other companies with regards to being acquired. The release mentioned that some big players in the sector have come to the table regarding joining NAS, each with revenues exceeding the current 3 combined acquisitions. NAS could be the next Power House in the Oil and Gas Services Sector.
The word of this gem is just getting out; Seeking Alpha, Wall Street Resources, Stock Market Media Group, -and many others have recently published detailed research reports. Some of the links are listed below.
http://seekingalpha.com/instablog/4960551-wall-street-resources/3119855-national-automation-services-has-3x-return-potential
http://www.stockmarketmediagroup.com/wp-content/uploads/2014/05/NAS-Inc.-Research-Report.pdf
The key to stable fast growth is to create revenue growth through acquisition and then compound such growth by way of developing synergies among the acquisition portfolio as well as growing each acquisition organically. As a result, growth through acquisition is a quicker, cheaper, and far less risky proposition than the more tedious and expensive methods of expanded marketing and sales efforts. Further, the growth by acquisition strategy offers a myriad of other advantages such as easier financing and instant economies of scale. The competitive advantages too are formidable, ranging from catching one's competition off guard, to instant market penetration even in areas where you may currently be weak, to the elimination of a competitor(s) through its acquisition.
NAS is currently undervalued and is in the process of moving to the AMEX, so that the benefits to the Company and our Shareholders will include a much better alignment of our valuation to our share price, and gives greater exposure and accessibility to the investment community. In particular, over 90% of registered reps at broker-dealers across the country are prohibited from recommending stocks that are currently trading under one dollar ($1.00). With a threshold listing price of three dollars ($3.00), up-listing to the AMEX will enable these reps to recommend NAS shares to their clients, thus creating potentially significant demand for, and consequent upward pressure on the price of the stock.
What is National Automation’s Worth from a Stock Standpoint; a Determination of Value of NASV Based on Market Capitalization and Gross Revenues of Comparable Companies.
With the recent (August 5, 2014) filing of a 14A Proxy Statement with the SEC, we have learned important details about future plans for NASV. In particular, these details help us to hone our previous pricing forecasts to achieve a clearer vision of the current and forward-looking value of NASV common stock. In the 14A, the Company disclosed, among other things, that it will reduce its authorized shares from one billion to 75 million and further will effectuate a 200 to 1 reverse split. These two actions will, in part, facilitate the up-listing of the Company to the NYSE:AMEX listing exchange. How will this affect the valuation of the Company and consequently the price of the Company’s common stock? In a word, “positively.”
The reasoning is simple. If the Company continues to trade on the OTC Markets quotation system, the true earnings potential of the Company is unlikely to be translated into a true market valuation of its Common Stock. This has been discussed before. The OTC Markets quotation system is fraught with manipulation by unscrupulous market makers. Their primary strategy is shorting, which effectively places an unwarranted artificial ceiling on the price of a company’s common stock. We have seen this with NASV. By all accounts, based on the company’s present forward-looking earnings of about $.014 per share, the Company should be trading at an easy $.20 to $.25 per share. But it’s not, it has been trapped in a trading range of about $.03 to $.05 ever since it announced the successful acquisition of JD Field Services.
In sharp contrast to the shenanigans of the “penny world”, listed exchanges are closely regulated and achieve the highest degree of professional trading ethics, which allows the price of a company’s common stock to realize its true pricing potential. Moreover, stocks that are trapped in the penny world cannot be purchased by 99% of registered reps employed by the many brokerage firms across the nation. In general, they are forbidden by their broker-dealer from purchasing stocks under $1.00 per share. As a result, the potential demand for shares that can be generated from a good story such as NASV is suppressed because the great story must be ignored or simply goes unnoticed.
So we know what the value of NASV is as a quoted stock on the OTC Markets. What is a realistic and highly probable value, once moved to the NYSE:AMEX? The most logical pathway to price discover is to compare comparable companies, that is similar participants in the oil and gas field services sector currently trading on a listed exchange. Our research uncovered 6 publicly traded companies with similar business services, who trade currently on the NYSE, NASDAQ or AMEX. These companies would be considered “competitors” of NAS if and when they occupy the same geographical area. The companies were not chosen for Market Cap, PPS, Share Structure or any other reason.
Included Companies are: Dakota Plains Holdings, Inc. (NYSE:DAKP) Williston Basin, ND; Blueknight Energy Partners, LP (NASDAQ:BKEP) located in 23 states; DHT Holdings, Inc. (NYSE:DHT) an International Corporation; Arc Logistics Partners, LP (NYSE:ENSV) Multiple Locations, headquarters in NY City; Enservco (NYSE:ENSV) Eastern USA to Rocky Mountain Region; and Nuverra Environmental Solutions, Inc. (NYSE:NES) Bakken, Marcellus/Utica, Haynesville, Eagle-Ford, Mississippian Lime, Barnett & Permian Basin shales. The services provided include but are not limited to: trans-loading & storage of energy products; terminalling, gathering and processing of oil and gas products; crude oil tanker fleets; water fluid hauling, frac tank rental, well enhancement and maintenance; delivery, collection, treatment, recycle and disposal of Restricted Environmental Products; water treatment, hauling, trucking and storage.
Share structure for these companies ranges from 12.9 million to 79.2 million, with the average being 38.6 million shares outstanding. Market capitalization for the companies ranges from $93.2 million to $532 million. Earnings per share ranges from $-8.88 to $0.33, with half of the companies generating negative earnings and half positive. Trading price ranges from $2.46 per share to $25.12 per share. The table in the following link summarizes relevant data on the 6 companies. Click here.
http://investorshub.advfn.com/uimage/uploads/2014/8/5/rkrouCompany_comparision.jpg
Due to the lack of applicable Price to Earnings Ratios (based on ½ of our comparable companies having negative earnings and no clear way to estimate what NASV will have for Net Profit in 2015) we have decided to use a multiple of the Market Capitalization divided by Gross Revenue for purposes of determining a comparative share value for NASV. This creates a static number much like a P/E Ratio, but one that can be calculated on a wider range of companies. In addition we can utilize 2013 and 2014 numbers for NASV to determine what size Market Cap we would have if all other variables were equal.
The valuation formula is simple and easy to apply. We divide each comparative company’s Market Capitalization by its Gross Revenues to arrive at a Market Cap Multiplier (“MCM”). We then calculated the Mean MCM, simply by adding each of the companies’ individual multipliers and dividing by 6. This eliminates weighting for company size and gets a simplistic multiplier. In this case that multiplier is 6.7. To determine the potential market capitalization for NAS, simply multiply the Company’s gross revenues by the Mean MCM.
We further refined the Mean MCM by removing the highest and lowest MCM’s of the six companies to eliminate the outlier effect. This worked out to a refined Mean MCM of 3.8. Finally, we calculated the Median MCM. This is simply a Higher Than/Lower Than equation. Since there was an even number, the 2 middle were used and averaged. This multiplier came out to 6.2.
The three multipliers give us a realistic range of possibilities for valuation of NASV once it achieves listing on the NYSE:AMEX. The potential market cap will be now calculated as determined by the companies it owns. First, we know the JD Field Services acquisition is completed, so we will calculate based on the revenue forecast from JD alone.
In 2013 JD had gross income of $19.4 million. Using the multipliers above, the range of Market Cap for NASV would be between $73.7 Million and $129.9 Million. Post reverse split, figuring there will be roughly 4 million issued and outstanding (“OS”) shares left, this translates into a PPS of between $18.42 and $32.47 per share. Although the estimates for 2014 revenues are significantly higher, I think we would all be satisfied with a PPS in this range.
Factoring in the recent Purchase and Sale agreements for Devoe Contracting of Colorado and MonDak Tank of North Dakota, we have a much bigger Price per Share potential. In 2013, Devoe had gross income of $15 million and MonDak Tank had $7.1 million. Combined with JD Field Services, that would bring the total gross income of NAS up to $41.5 million. The Market Capitalization range becomes $157.7 to Million - $278.0 Million, while the Price per Share range grows to between $39.42 and $69.5.
Interestingly, to prove how the move to the NYSE:AMEX allows the Company to reach its true pricing potential or conversely to see what the improvement in today’s pre-split pricing would be, divide the above projected per share prices by the reverse split factor of 200. With JD Field Services revenue alone we would be at $.09 to $.16. Adding Devoe and MonDak revenues we would be at $.19 to $.34.
The above information is from my own Due Diligence and is my own opinion. I am Long in NASV. I did not receive compensation for posting this opinion. This is not a solicitation for investment. This is only an awareness statement of my opinion of a company I feel is undervalued. Please do your own Due Diligence before investing.
Contact:
Jeff Krueger
3)http://www.stockmarketmediagroup.com/wp-content/uploads/2014/05/NAS-Inc.-Research-Report.pdf
Recent Significant News Releases:
1)National Automation Services Announces Name Change and Increase in Authorized Shares
LAS VEGAS, NV--(Marketwired - Jul 15, 2015) - National Automation Services, Inc. (the "Company") (OTC PINK: NASV), a growing oil and gas services company, today announced that, effective July 15, 2015, its name changed to National Energy Services, Inc., and its stock symbol changed from "NASV" to "NESV" (OTC PINK: NESV). In addition, the Company increased its authorized number of shares of common stock from 75,000,000 to 150,000,000.
The Company's common stock has been assigned a new CUSIP number of 63581T101, in connection with the name change. Outstanding stock certificates will not be affected by the name change and will not need to be exchanged. All stock trading, filings and market-related information will be reported under the new corporate name and trading symbol.
Robert Chance, President and Chief Executive Officer, commented, "We are pleased to announce the name change for the Company as we feel that our new name represents a better alignment of our focus in the Oil and Gas Industry. At the same time, the increase in our authorized shares of common stock is intended to provide us with added flexibility in effecting any future acquisitions and financings."
http://www.marketwired.com/press-release/national-automation-services-announces-name-change-and-increase-in-authorized-shares-otc-pink-nasv-2038651.htm
2)National Automation Services Appoints Additional Independent Directors
LAS VEGAS, NV--(Marketwired - Jun 9, 2015) - National Automation Services, Inc. ("NAS" or "Company") (OTC PINK: NASV) a growing oil and gas services company, today announced the appointment of two additional directors, John Merkel and Brent Robbins.
John Merkel, an engineer, has held upper management positions in many oil and gas production companies over his 25 plus year career. Since 2012, Mr. Merkel has served as a Drilling Superintendent for Triangle Petroleum Corporation, a vertically integrated energy company, where he oversees all aspects of well site drilling. Prior to that from 2011 to 2012, Mr. Merkel served as Wellsite Supervisor for Fidelity Exploration & Production Company, an oil and gas company that is part of the MDU Resources Group, where he supervised onsite drilling operations. From 2006 to 2011, Mr. Merkel served in a variety of drilling operations/engineering roles for Anardarko Petroleum Corporation, one of the largest independent exploration and production companies. Prior to this, Mr. Merkel has served in supervision/engineering roles with Northwestern Energy and Montana Power Company. Mr. Merkel holds a B.S. and M.S. in Petroleum Engineering from Montana Tech.
Brent Robbins, a CPA, brings over 25 years of accounting experience in the oilfield, construction, banking, securities, insurance, technology, entertainment and healthcare industries. Since 2010, Mr. Robbins has been principal of his own accounting practice where he specializes in tax planning and preparation, providing CFO services, and business consulting. Prior to that, Mr. Robbins served in a variety of accounting roles including serving as tax manager, CFO for hire and principal of an accounting practice. Mr. Robbins began his accounting career at KPMG in the tax department. Mr. Robbins obtained a B.S. in Accounting from Brigham Young University and graduated from the University of Utah with a Masters of Professional Accountancy in Taxation.
Robert Chance, President and Chief Executive Officer, commented, "We are pleased to welcome John Merkel and Brent Robbins to the NAS Board which follows the recent appointment of John McKeachnie. They both bring a wealth of experience and knowledge to the NAS team. We believe their contributions will greatly benefit the Company and shareholders as we strive to meet our strategic goals of building the Company, with aspirations of up-listing to a national securities exchange in the near future."
http://www.marketwired.com/press-release/national-automation-services-appoints-additional-independent-directors-otc-pink-nasv-2027988.htm
3)National Automation Services Retains Firm to Provide Advisory Services in Connection With Effort to Obtain a Listing on a National Stock Exchange
LAS VEGAS, NV--(Marketwired - May 29, 2015) - National Automation Services, Inc. (OTC PINK: NASV) today announced that it has retained Donohoe Advisory Associates LLC of Rockville, Maryland to advise and assist the Company in its efforts to obtain a listing on a national securities exchange.
Donohoe Advisory, founded by David A Donohoe, Jr. in 2004, has successfully represented dozens of companies seeking to list on U.S. stock exchanges. Prior to forming Donohoe Advisory, Mr. Donohoe spent nine years with The NASDAQ Stock Market where he ultimately served as Chief Counsel in the Listings Qualifications Department. Bruce Poignant, who serves as a Senior Consultant for Donohoe Advisory, will also be working closely with the team. Mr. Poignant spent more than 20 years in the Exchange space, working at both the American Stock Exchange and the NYSE. Over the past 10 years, he was a member of capital markets groups at both the AMEX and NYSE working with numerous companies to help them navigate through the listing process. Additional information relating to Donohoe Advisory is available at www.donohoeadvisory.com.
Bob Chance, President and CEO, stated, "We are very pleased to be working with Donohoe Advisory Associates with their vast experience in the Markets. We look forward to their advice on strategic positioning and counsel on seeking a national listing for our Company, which has been a long term goal of ours."
http://www.marketwired.com/press-release/national-automation-services-retains-firm-provide-advisory-services-connection-with-otc-pink-nasv-2024546.htm
4)National Automation Services Reports 2014 Financial Results Earnings per Share of $0.08 on Revenue of $17,614,000
LAS VEGAS, NV--(Marketwired - Apr 16, 2015) - National Automation Services, Inc. ("NAS" or "Company") (OTCQB: NASV), a growing oil and gas services company, today announced financial results for the year ended December 31, 2014.
2014 Highlights Include:
Revenue of $17,614,000
Gross margin of $3,130,000
Net income of $312,100
Earnings per basic of $0.08 /diluted share of $0.06
Customer mix in 2014 was approximately 60% natural gas and 40% oil producers
Diversified oil producing customers are flexible, lower overhead operators that continue to operate while oil prices fluctuate
Immediate and long term outlook for natural gas production is very promising
NAS is evaluating strategic acquisition opportunities emerging in the current market of relatively lower oil prices
"We are very pleased to have concluded our first year of operating an acquired oil and gas services business, and more importantly we have done so profitably. We believe this exemplifies NAS's ability to identify, acquire, and integrate subsidiaries that are both a strong strategic fit and add to our bottom line. In management's opinion, and based on standard industry valuation metrics, NAS has delivered superior operating and profit performance relative to the Company's current market capitalization," stated NAS CFO Jeremy Briggs.
http://www.marketwired.com/press-release/national-automation-services-reports-2014-financial-results-earnings-per-share-008-on-otcqb-nasv-2010464.htm
5)National Automation Services, Inc. - 2015 Business Strategies
LAS VEGAS, NV--(Marketwired - Mar 2, 2015) - National Automation Services, Inc. ("NAS" or "Company") (OTCQB: NASV), an Oil and gas services company, announced that it has updates to investors on the changes in business planning for the remainder of the 2015 calendar year.
Within the domestic oil and gas industry, the recent decline in oil prices has created challenges for some companies, while creating opportunities for others. NAS is aggressively capitalizing on the opportunities as recently reported, as a dominant force in the Rocky Mountain region marketplace, and have had record setting months. This is directly attributable to our diverse customer base.
Moreover, a significant number of our current customers, about 60% are Natural Gas ("NG") producers, which have not experienced the price valuation decline magnitude that oil producers have experienced. Indeed, the intermediate and long term outlook for domestic NG production is very promising. The domestic supply has been bottled up with no vehicle to process the gas into liquid natural gas ("LNG") for export to world markets. However, many companies are about to change this dynamic.
A good example of this change is Cheniere Energy Inc. a Houston, TX-based company. In 2013, the Department of Energy approved Cheniere Energy's Sabine Pass Liquefaction terminal in Cameron Parish, LA, which will ship up to 2 billion cubic feet of gas per day starting this year. Lithuania announced this past Saturday it had just signed a trade agreement to buy liquefied natural gas from Cheniere Energy's new export facility, in a move aimed at reducing the European Union ("EU") and Baltic States heavy dependence on Russian gas deliveries. This trend by the Baltic States and EU is expected to significantly increase over the next year.
Cheniere also has plans to open a new export terminal in Corpus Christi, TX that could be operational by 2017. Dominion Resources Inc., Chevron Corp., Veresen Inc., and KBR Inc. are among other leaders, who are developing and constructing new LNG Plants across the U.S. for delivery abroad. The LNG Plants currently under construction together with others in the permitting process are expected to total approximately two dozen nationally, all targeted for exports from the U.S. to markets abroad. As much as 8.2 billion cubic feet per day of U.S. liquefied natural gas is expected to be delivered to consumers worldwide by 2018.
Bob Chance, President and CEO of National Automation Services, commented on the Company's future plans, "In light of these new developments in the Oil and Gas sector, we reported in June of 2014 that we had signed purchase and sale agreements with two additional companies to be added to the NAS portfolio, which were set to close in the first quarter of 2015. Although we are still very interested as both are exceptional companies, we have not committed to a final closing because of the dynamics in play that the energy sector is experiencing with low oil prices.
"The current environment of slumping oil prices and the increased potential natural gas has presented through the construction of new LNG export facilities nationwide, has prompted management and the Board to take another look at our current strategies in comparison to certain emerging opportunities that were not available 6 months ago. We are reviewing new opportunities every day, and our focus is to bring the most value to every dollar spent on our growth strategy. It is exciting to see the magnitude of change any one of these new opportunities could bring to NAS in the very near future."
http://www.marketwired.com/press-release/national-automation-services-inc-2015-business-strategies-otcqb-nasv-1996312.htm
6)National Automation Services, Inc. - Announces Engagement of New SEC Counsel
LAS VEGAS, NV--(Marketwired - Feb 3, 2015) - National Automation Services, Inc. ("NAS" or "Company") (OTCQB: NASV) a small, but rapidly growing oil and gas services company announced that it has engaged the services of Sichenzia, Ross, Friedman, Ference, LLP located at 61 Broadway, New York, NY 10006, as our new securities counsel.
This engagement of new SEC counsel has been anticipated for some time to better align the Company for an upcoming up-list to NASDAQ or to the NYSE MKT Exchange.
Sichenzia, Ross, Friedman, Ference, (SRFF) a boutique law firm with a worldwide presence, was selected because of their extensive experience in securities and corporate law. The firm provides experienced, professional representation in all matters involving the securities industry, as well as in all general corporate and litigation matters. SRFF's clients range from start-ups to established, listed companies; they include private and public corporations, partnerships, broker-dealers, bank-affiliated broker-dealers, investment advisors, registered personnel, public and corporate customers and investors, partnerships and other entities. The firm also advises institutional investors on transactions involving complex securities law considerations.
Andrea Cataneo, a Partner of SRFF, is NAS's primary attorney directing her team on business and securities matters during the pre and post up-listing process. The National Investment Banking Association ("NIBA") recently named Andrea as a director. NIBA is a national trade association of regional and independent brokerages, investment banking firms, fund managers and capital market service providers and SRFF has worked closely with NIBA in the past several years to develop a network of investment and capital resources for the firm's clients.
NAS President and CEO Bob Chance stated, "We are fortunate to have the opportunity to work with such a prestigious law firm and in particular, Ms. Cataneo. After a rigorous selection process of the many firms recommended to us, our Company chose Sichenzia, Ross, Friedman, Ference because of the vast services they can provide us, not only for the up-listing and SEC reporting responsibilities, but also the ability to help us expand our network to an elite number of brokerage and investment banking firms which is important to small growing companies such as NAS. We are very happy to welcome Andrea and Sichenzia, Ross, Friedman, Ference to our team as I know great things will be born out of this relationship."
http://www.marketwired.com/press-release/national-automation-services-inc-announces-engagement-of-new-sec-counsel-otcqb-nasv-1988230.htm
7)JD Field Services Announces Banner December in Gross Revenues
LAS VEGAS, NV--(Marketwired - Jan 28, 2015) - National Automation Services, Inc. ("NAS" or "Company") (OTCQB: NASV) a small, but rapidly growing oil and gas services company announced that it projects that its subsidiary, JD Field Services ("JD"), is presently experiencing phenomenal growth, despite the current environment in the oil and gas sector. December 2014 gross revenues are expected to be a robust $2.5 Million, compared with $1.6 Million during the same period in 2013, and we project that this increased activity has carried into January for the first quarter of 2015.
Management believes this significant increase is attributable to a number of factors, including: (i) market diversification, with over 30 active clients in the Wyoming, Utah and Colorado area's being served; (ii) the addition of new heavy hauling equipment in 2014 such as the two 275 ton cranes and specialty outfitted tractor trailers to accommodate the three rig moving crews servicing these clients; and (iii) the 15 year reputation JD has had with large and small producers as the preferred vendor of these services.
Jason Jensen, General Manager of JD and a Director of NAS, commented on the current and future outlook of the Company: "JD has not only survived the recent downturn in oil prices, but we are actually thriving. Many of the smaller producers we serve developed budgets to include oil prices at or below $50 per barrel. Having so many independent producers in our portfolio who have followed this strategy, even when oil was above $100, we are prepared to weather the storm of low crude prices. We also have a mixed bag of producers who do not target oil but primarily drill for natural gas ("NG"), who have not been affected by the recent downturn. A rough estimate of oil vs. natural gas production by the operators we serve is 60% NG and 40% oil mix."
Mr. Jensen added, "If oil prices remain low, we very well may see a flat line in growth of the oil producers in 2015, but we do not expect a decline in business, because our focused approach, much like the strategy employed by smaller producers, of budgeting for $50 oil per barrel. The larger producers, with excessive operating overhead, will likely decline, whereas, we have the flexibility to adjust to the market by reallocating assets to NG and to producers with lower overhead that can operate under a benchmark of $50 per barrel. We also recognize an opportunity in this environment to grow our operations organically by acquiring assets, employees and clients from competitors who are not faring as well as we are because of a lack of market diversification. Competitors who traditionally only serviced one to two large producers are suffering due to market concentration, and this environment further creates demand for our services, while enabling us to acquire the talent needed to give our clients the best possible service."
Jenson continued, "We are fortunate to be surrounded by ingenuity in a declining climate. One of JD's clients, an independent oil company just informed JD they are adding two new rigs while others have succumbed to rig stacking while waiting out the price downturn until prices improve. We see this as a time of opportunity, not despair, as the media may want others to believe. We have positioned NAS/JD to take advantage of organic growth opportunities that were non-existent a year ago, while keeping a close eye on acquisition opportunities that may arise during this declining period. We are seeing unprecedented opportunity to continue our growth by acquisition strategy. Backed by the financial strength of our investment banking partner, together with the operating prowess of JD field services, we are eminently positioned to make new acquisitions at significant discounts from much higher valuations just months ago."
Management is unable to explain why investors have not purchased the Company's stock at the current price/earnings ratio level, caused by the recent drop in the price of NAS common stock which has followed the recent trend in the oil and gas industry. Bob Chance, CEO for NAS has stated, "This is a clear case of the baby being thrown out with the bath water. The Company estimates that it is currently generating net income at an annual pace of about $3.9 Million. With only 4.5 Million shares outstanding, the Company estimates that net income may be $0.86 per share. At current price of NAS stock, we estimate that we are currently selling at a bit over 1X earnings in a sector that typically sells at a higher multiple of earnings." As we open new channels and move closer to our upcoming move to NYSE MKT, we believe that the greater investment community will hear our story and recognize what we believe to be our true value."
http://www.marketwired.com/press-release/jd-field-services-announces-banner-december-in-gross-revenues-otcqb-nasv-1986672.htm
8)National Automation Services, Inc. -- Letter to Shareholders
LAS VEGAS, NV--(Marketwired - Dec 15, 2014) - National Automation Services, Inc. ("NAS") (OTCQB: NASV) a small, but rapidly growing oil and gas services company has issued this informational letter to National Automation Services shareholders, which does not constitute an offer or invitation to sell, purchase or subscribe for any securities, or the solicitation of an offer to buy or subscribe for securities, in any jurisdiction and is not a prospectus as defined by the US Securities and Exchange Commission.
In a statement written by Robert Chance, CEO of National Automation Services:
To our most valued Shareholders
Let me begin by saying, WOW WHAT A YEAR! 2014 has seen the culmination of all the blood, sweat and tears our team has exuded over the last few years. All of our dreams and aspirations have resulted in what we now see as National Automation Services. From our completed acquisition of J.D. Field Services to our Purchase and Sale agreements with Devoe Contracting in the Denver Basin of Colorado and MonDak Tank of Williston, ND, (both of which we anticipate, but cannot guarantee, closing early next year) to our taking steps to expectantly up list to the NYSE Markets Exchange (formerly known as the American Stock Exchange), we are on the cusp of unprecedented success.
Acquisitions - J.D. Field Services has won prestigious awards in the oil and gas industry and we believe it will see continued growth in 2015 and beyond. When we factor in the soon to be completed acquisitions of Devoe and MonDak, Management contends that the projected growth for NAS is absolutely incredible. And the best is yet to come! We have precisely, and sometimes painfully, positioned NAS to be one of the companies that represent the future of oil and gas production in the United States. We are building a conglomerate which will, when completed, be able to offer an all-inclusive servicing solution for oil and gas producers in the United States. Each of the companies in the NAS portfolio has and will have a series of products and services which work synergistically with those of the other companies. NAS has no plans to rest on its proverbial laurels. Not now, not ever. We are far from done building your company.
Industry - Some of our shareholders have expressed concern over what effect, if any, the recent fall in oil prices is going to have on our business and share price. Oil prices have dropped about 40% since peaking in June causing a sharp sell-off in traditional oil and gas shares and consequential drops in share prices. We believe that this is panic selling and is inconsistent with the global long-term underlying trends now in play in the oil & gas industry. On the contrary, the U.S. oil and gas industry is embarked on an unprecedented growth trajectory and National Automation Services is positioned to ride the wave. Moreover, with fuel being a significant operating cost for JD Field Services, the drop in fuel prices, primarily diesel, is, on pour opinion, adding profit to JD's bottom line.
According to the US Energy Information Administration, on November 27th, 2014 the wholesale spot price per gallon for Ultra-Low Sulphur No. 2 Diesel Fuel on the US Gulf Coast was $2.265 per gallon. On the same day, the spot price for Crude Oil at WTI in Cushing, Oklahoma was $75.74. One year earlier, these prices were $2.96 for diesel fuel and $92.05 for Crude Oil. The prices peaked to $3.079 on February 20th, 2014 for diesel fuel and $107.95 on June 20th, 2014 for crude oil. From their 2014 high, the wholesale price of Diesel Fuel is down 26.5%, making for a drastic reduction in one of JD Field Services highest expense categories, fuel costs. We believe that this translates to a direct and immediate improvement in bottom line profits, without causing any recession of income.
In the same timeframe, Natural Gas has seen increases in price. From its low of $1.95 per Million Btu in 2012 we have seen a steady ascent in price throughout the last two years to $3.78 per Million Btu for October 2014, according to Henry Hub Natural Gas Spot Price. We contend that this is good for our Company because our current business with operators, as they switch over, will reduce transportation, per diem, and other cost of sales items improving our profit margins, while also increasing sales. Moreover we believe that long-term demand for U.S. natural gas is likely to grow as new refining and transport facilities currently under construction come on line.
So in the short term, the net effect of lower oil prices and steady natural gas prices will, in our opinion, have a positive impact on both the top and bottom line of National Automation Services.
Moreover, oil and gas prices are cyclical and U.S. producers have their eye on the long ball. 2015 global demand for oil is, to pour knowledge, projected to be 94.1 million barrels per day, which will outstrip 2015 global projected supply of 92.9 million barrels per day. This should put the brakes on falling oil prices and potentially reverse the trend.
NYSE Markets Exchange - While change can be deemed unpleasant for some, this is a change that we all can agree on. Currently the Company is represented on the OTC Markets (Over the Counter) Exchange. While this exchange is perfect for many companies, we feel, and shareholders have agreed, that the future of NAS lies on another exchange. In partnering with our New York based Wall Street investment banker, we have had a tremendous amount of assistance in our quest to move to another exchange. Our exhaustive investigation has revealed that the most successful path for NAS will be to move to the NYSE Markets Exchange (formerly known as the American Stock Exchange). While this is a very aggressive goal, feedback from shareholders has told us that you want it to happen. The boldest example of this is when you authorized the company to enact a sizeable stock re-capitalization in order to be better positioned to qualify for the price point required of a higher exchange.
The Future - If only foresight was as clear as hindsight, we'd all have won the Lottery and would never want for anything! Unfortunately that is not the case, so while we continue on the journey forward, we are certain of one thing, there will be more than our fair share of adversities but we will overcome and make NAS the best company possible. We look forward to 2015 and expect, but cannot guarantee, that we will once again add to our portfolio of companies. We will continue on our path and create a conglomerate of companies each interwoven, feeding off each other's strengths and reinforcing any weaknesses. From the bottom of my heart, THANK YOU. Without the support of our shareholders none of this could come to fruition. Each and every member of the NAS team is truly thankful that we have the support and dedication of our shareholder base, and will move forward with one goal in mind: Increase shareholder value. Have a Happy Holiday Season!
Sincerely yours,
Robert W. Chance
President/CEO
National Automation Services
http://www.marketwired.com/press-release/national-automation-services-inc-letter-to-shareholders-otcqb-nasv-1976777.htm
9)National Automation Services, Inc. Announces 1 for 200 Reverse Stock Split
LAS VEGAS, NV--(Marketwired - Dec 11, 2014) - National Automation Services, Inc. ("NAS") (OTCQB: NASV), a small, but rapidly growing oil and gas services company, has approved a reverse stock split of NAS's outstanding shares of common stock at a ratio of 1 for 200. The reverse stock split, previously approved by the holders of the majority of the shares of common stock, is expected to be effective on December 11, 2014 (the "Effective Date").
Accordingly, and at the Effective Time, every two hundred issued and outstanding shares of common stock of NAS will be converted into one share of common stock of NAS. In addition, at the market open on December 11, 2014, the common stock will be assigned a new CUSIP number: 632554 200. In connection with the Company's reverse stock split, the Financial Industry Regulatory Authority ("FINRA") has assigned the Company a new stock symbol, NASVD. The Company's stock will be quoted as NASVD for twenty business days after the Effective Date, and thereafter, the trading symbol will be NASV (OTC Markets).
As a result of the reverse stock split, the number of outstanding shares of NAS's common stock will be reduced from approximately 788,196,454 shares of Common Stock to approximately 3,940,983 shares. The number of authorized shares of common stock was reduced from 1,000,000,000 to 75,000,000 and 10,000,000 shares of preferred stock was authorized, the designations, rights and preferences of which will be determined by the Board of Directors.
Jeremy Briggs, CFO of the Company, said, "The Company has worked hard to get to this point in passing another milestone in our recapitalization efforts, and business strategy. I appreciate all the hard work of our team and the patience of our shareholders. The Company is moving in the right direction for our future growth."
All fractional shares will be rounded up and each shareholder will receive new certificates evidencing their post-reverse split shares if and when they present their certificates to the transfer agent. Current stock certificates may be exchanged for new certificates by contacting the Company's transfer agent, Worldwide Stock Transfer, LLC at Worldwide Stock. The reverse stock split will apply to all of NAS's outstanding shares of common stock and therefore will not affect any stockholder's relative ownership percentage.
10)National Automation Services, Inc. Announces First Acquisition
LAS VEGAS, NV--(Marketwired - Feb 28, 2014) - National Automation Services, Inc. (OTCQB: NASV), announced today it has executed its first acquisition.
On Monday February 24th, 2014, NAS completed the purchase of JD Field Services and its subsidiary have over 100 employees with a three year historical average of sales in excess of $24,000,000 and estimated $19,000,000 in assets. They are a mid-sized service provider (providing services such as Roustabout, water services, rig haul, and trucking services) to the oil and gas industry operating in the Rocky Mountain region and North Dakota shale play region. An 8-K was filed with the SEC on Tuesday February 25, 2014 with all details relating to the purchase agreement.
In a statement by Jeremy Briggs, CFO for NAS: "JD Field Services, our first acquisition of many planned, has been the product of NAS's restructuring which began in early 2012. The road getting to this point has been long, but we have finally arrived at our first destination which is JD. JD will continue to deliver quality service to their clients while NAS will simply be the Parent Company focused on helping JD make strategic acquisitions that will allow them to increase services to their clients. We are very excited about the synergies between the two Companies and look forward to working closely with them in the future."
http://www.marketwired.com/press-release/national-automation-services-inc-announces-first-acquisition-otcqb-nasv-1883973.htm
Excellent Articles on NESV (written over a year ago)
1)http://seekingalpha.com/instablog/4960551-wall-street-resources/3119855-national-automation-services-has-3x-return-potential
National Automation Services Has 3x Return Potential 2 comments
Aug 1, 2014 9:01 AM | about stocks: NASV-OLD
National Automation Services has 3x Return Potential
We recently had a chance to speak with Mr. Robert Chance, CEO of National Automation Services to get an update on his company. National Automation Services, Inc. (OTCQB: NASV) is a public holding company that is focused on the acquisition and integration of private companies in the billion dollar oil and gas services sector. Management's end game is to turn NAS into a large vertically integrated energy services organization that will be a large and growing beneficiary of the domestic energy boom. The acquisition targets must meet management's strict underwriting investment hurdles, including track records of long term, stable, and profitable operations. Additionally, they must be accretive to shareholder value, offer synergies (providing additional revenue streams and cost savings) and be geographically compatible with the other wholly owned subsidiaries. The other significant benefit to be recognized from this rollup strategy is the private-to-public multiple expansion that NAS would capture.
Once acquired, each wholly owned subsidiary will operate as its own entity with existing management retained. This allows the Company's management to focus on maintaining quality while increasing current levels of revenues and profitability. Each subsidiary provides their financials to NAS and the Company will make site visits to ensure companies are in compliance for reporting and monitoring purposes.
Deals
In June 2014, the Company announced the completion of its first acquisition, JD Field Services, in an all-stock deal and debt assumption. JD provides oilfield services to the oil and gas industry primarily focused around those activities that are related to the drilling, operation and maintenance of the well-site. JD is licensed in all states west of the Mississippi River including Alaska to do trucking, but is focused primarily in the Rocky Mountain Region. Oilfield services provided include heavy haul, water haul, and rig moving services as well as equipment, supplies, and specialty long hauling services. JD also provides oil and gas equipment rental services, hot shot, roustabout services and construction site development services. JD also operates a fabrication division that builds special-order oil and gas equipment and trucks for customers.
JD Field Services has approximately 130 employees and a three year historical average of $24 million in annual gross revenues, 2013 EBITDA of approximately $5.7 million, and net assets valued at around $7.5 million.
The Company is currently working on two additional acquisitions, having signed purchase and sale agreements with Devoe Construction and MonDak Tank, Inc. Devoe was recently awarded the Prestigious Mercury top 100 fastest growing private companies in Colorado. With more than $1 billion being spent on infrastructure in the Denver-Julesburg Basin, this area is primed for growth. MonDak is located in in Williston, North Dakota, right in the epicenter of the Bakken and Three Forks Shale play. MonDak is a widely respected contracting outfit in their field and have an excellent management team that will continue on with NAS after the purchase. The Company expects to finance these acquisitions with cash.
According to the Company's initial unaudited review of Devoe and MonDak's books, they are reporting 2013 revenues of $15 million and $7.1 million and EBITDA of $2.2 million and $2.2 million respectively. Together with JD, the parent company would have reported 2013 revenues of $46.1 million and 2013 EBITDA of $10.1 million.
Future Activity/Deal Flow
Additionally, the Company expects to continue to add to its acquisition pipeline, with four more additional acquisitions over the next 12-18 months funded with a combination of cash, debt, and stock. According to management, some of these acquisitions may be significantly larger than the ones currently on the table. In addition to the expected organic growth from all wholly owned subsidiaries, the Company fully expects to generate additional sales and cost savings via synergies provided by the vertically integrated structure. Management intends to reverse split the stock 200-1 (maximum) and uplist to the NYSE MKT by the first quarter 2015.
Funding
The Company recently announced that it has entered into a five year $10 million (straight debt facility) agreement with a National Commercial Finance Company facilitated by Wellington Shields out of Manhattan. Six million dollars will be used to retire JD Field Services obligations, leaving the rest for working capital and corporate uses. Management indicated that Wellington Shields has committed to providing $30 million in debt and $30 million in equity to finance additional acquisitions.
Investment Opinion
Shares of NASV currently trade at $0.032 per share on the OTCQB, with 751,987,293 shares outstanding, making a market capitalization of $24,063,593. Holding the market cap constant, post a 200-1 reverse split, this share count would equate to 3,759,936, or $6.40 per share (exceeding the $5.00 minimum price to list on the NYSE MKT).
If we take a look at a few publically traded comps in the oil and gas service sector, we can try to size up where NASV stands. For instance, one of our comps, Nuverra Environmental Solutions, Inc. (NYSE: NES) provides environmental solutions for unconventional oil and gas exploration and production, including the delivery, collection, treatment, recycle, and disposal of restricted environmental products used in the development of unconventional oil and natural gas fields. On an Enterprise Value (NYSE:EV)/revenue multiple, shares of NES trade at 2.02x. GreenHunter Resources (NYSE MKT: GRH) provides hydraulic fracturing services, as well as fluids handling, hauling, and barging services. On an EV/revenue multiple, shares of GRH trade at 3.49x. For this purpose, we can take the average of our two comps to arrive at a multiple of 2.76x. Using historical revenue numbers for JD and the other two companies to be acquired; we arrive at an enterprise value of $127.2 million, which assuming net debt of $17 million gives us a market capitalization value of $110.2 million, or $29.30 post reverse split. In our view, this means that shares of NASV currently trade at a 78% discount to historic value, with no accounting for future organic growth, synergistic cost savings or growth via future acquisitions. Assuming management is able to successfully execute on its future rollup strategy and uplist to the NYSE, we believe that NAS, after acquiring an additional four undisclosed companies and integrating them into the parent, should approach $200 million in market cap by the end of 2015.
Paul Silver
2)http://www.baystreet.ca/viewarticle.aspx?id=418746
National Automation (NASV) Partners with Wellington Shields - Expansion Through Acquisition
[ACCESSWIRE]
National Automation Services, Inc. (NASV), Partners with Wellington Shields
Expansion through Acquisition. Literally overnight NAS becomes a $46.3 million grossing company in the Oil and Gas Services Sector with 3 acquisitions and 5 locations in the Midwest. The following link shows all current locations http://investorshub.advfn.com/uimage/uploads/2014/8/4/lqhvgNASV_all_JD_locations_8inch.jpg
Also as previously stated by NAS in previous press releases, NAS is in negotiations with several other companies with regards to being acquired. The release mentioned that some big players in the sector have come to the table regarding joining NAS, each with revenues exceeding the current 3 combined acquisitions. NAS could be the next Power House in the Oil and Gas Services Sector.
The word of this gem is just getting out; Seeking Alpha, Wall Street Resources, Stock Market Media Group, -and many others have recently published detailed research reports. Some of the links are listed below.
http://seekingalpha.com/instablog/4960551-wall-street-resources/3119855-national-automation-services-has-3x-return-potential
http://www.stockmarketmediagroup.com/wp-content/uploads/2014/05/NAS-Inc.-Research-Report.pdf
The key to stable fast growth is to create revenue growth through acquisition and then compound such growth by way of developing synergies among the acquisition portfolio as well as growing each acquisition organically. As a result, growth through acquisition is a quicker, cheaper, and far less risky proposition than the more tedious and expensive methods of expanded marketing and sales efforts. Further, the growth by acquisition strategy offers a myriad of other advantages such as easier financing and instant economies of scale. The competitive advantages too are formidable, ranging from catching one's competition off guard, to instant market penetration even in areas where you may currently be weak, to the elimination of a competitor(s) through its acquisition.
NAS is currently undervalued and is in the process of moving to the AMEX, so that the benefits to the Company and our Shareholders will include a much better alignment of our valuation to our share price, and gives greater exposure and accessibility to the investment community. In particular, over 90% of registered reps at broker-dealers across the country are prohibited from recommending stocks that are currently trading under one dollar ($1.00). With a threshold listing price of three dollars ($3.00), up-listing to the AMEX will enable these reps to recommend NAS shares to their clients, thus creating potentially significant demand for, and consequent upward pressure on the price of the stock.
What is National Automation’s Worth from a Stock Standpoint; a Determination of Value of NASV Based on Market Capitalization and Gross Revenues of Comparable Companies.
With the recent (August 5, 2014) filing of a 14A Proxy Statement with the SEC, we have learned important details about future plans for NASV. In particular, these details help us to hone our previous pricing forecasts to achieve a clearer vision of the current and forward-looking value of NASV common stock. In the 14A, the Company disclosed, among other things, that it will reduce its authorized shares from one billion to 75 million and further will effectuate a 200 to 1 reverse split. These two actions will, in part, facilitate the up-listing of the Company to the NYSE:AMEX listing exchange. How will this affect the valuation of the Company and consequently the price of the Company’s common stock? In a word, “positively.”
The reasoning is simple. If the Company continues to trade on the OTC Markets quotation system, the true earnings potential of the Company is unlikely to be translated into a true market valuation of its Common Stock. This has been discussed before. The OTC Markets quotation system is fraught with manipulation by unscrupulous market makers. Their primary strategy is shorting, which effectively places an unwarranted artificial ceiling on the price of a company’s common stock. We have seen this with NASV. By all accounts, based on the company’s present forward-looking earnings of about $.014 per share, the Company should be trading at an easy $.20 to $.25 per share. But it’s not, it has been trapped in a trading range of about $.03 to $.05 ever since it announced the successful acquisition of JD Field Services.
In sharp contrast to the shenanigans of the “penny world”, listed exchanges are closely regulated and achieve the highest degree of professional trading ethics, which allows the price of a company’s common stock to realize its true pricing potential. Moreover, stocks that are trapped in the penny world cannot be purchased by 99% of registered reps employed by the many brokerage firms across the nation. In general, they are forbidden by their broker-dealer from purchasing stocks under $1.00 per share. As a result, the potential demand for shares that can be generated from a good story such as NASV is suppressed because the great story must be ignored or simply goes unnoticed.
So we know what the value of NASV is as a quoted stock on the OTC Markets. What is a realistic and highly probable value, once moved to the NYSE:AMEX? The most logical pathway to price discover is to compare comparable companies, that is similar participants in the oil and gas field services sector currently trading on a listed exchange. Our research uncovered 6 publicly traded companies with similar business services, who trade currently on the NYSE, NASDAQ or AMEX. These companies would be considered “competitors” of NAS if and when they occupy the same geographical area. The companies were not chosen for Market Cap, PPS, Share Structure or any other reason.
Included Companies are: Dakota Plains Holdings, Inc. (NYSE:DAKP) Williston Basin, ND; Blueknight Energy Partners, LP (NASDAQ:BKEP) located in 23 states; DHT Holdings, Inc. (NYSE:DHT) an International Corporation; Arc Logistics Partners, LP (NYSE:ENSV) Multiple Locations, headquarters in NY City; Enservco (NYSE:ENSV) Eastern USA to Rocky Mountain Region; and Nuverra Environmental Solutions, Inc. (NYSE:NES) Bakken, Marcellus/Utica, Haynesville, Eagle-Ford, Mississippian Lime, Barnett & Permian Basin shales. The services provided include but are not limited to: trans-loading & storage of energy products; terminalling, gathering and processing of oil and gas products; crude oil tanker fleets; water fluid hauling, frac tank rental, well enhancement and maintenance; delivery, collection, treatment, recycle and disposal of Restricted Environmental Products; water treatment, hauling, trucking and storage.
Share structure for these companies ranges from 12.9 million to 79.2 million, with the average being 38.6 million shares outstanding. Market capitalization for the companies ranges from $93.2 million to $532 million. Earnings per share ranges from $-8.88 to $0.33, with half of the companies generating negative earnings and half positive. Trading price ranges from $2.46 per share to $25.12 per share. The table in the following link summarizes relevant data on the 6 companies. Click here.
http://investorshub.advfn.com/uimage/uploads/2014/8/5/rkrouCompany_comparision.jpg
Due to the lack of applicable Price to Earnings Ratios (based on ½ of our comparable companies having negative earnings and no clear way to estimate what NASV will have for Net Profit in 2015) we have decided to use a multiple of the Market Capitalization divided by Gross Revenue for purposes of determining a comparative share value for NASV. This creates a static number much like a P/E Ratio, but one that can be calculated on a wider range of companies. In addition we can utilize 2013 and 2014 numbers for NASV to determine what size Market Cap we would have if all other variables were equal.
The valuation formula is simple and easy to apply. We divide each comparative company’s Market Capitalization by its Gross Revenues to arrive at a Market Cap Multiplier (“MCM”). We then calculated the Mean MCM, simply by adding each of the companies’ individual multipliers and dividing by 6. This eliminates weighting for company size and gets a simplistic multiplier. In this case that multiplier is 6.7. To determine the potential market capitalization for NAS, simply multiply the Company’s gross revenues by the Mean MCM.
We further refined the Mean MCM by removing the highest and lowest MCM’s of the six companies to eliminate the outlier effect. This worked out to a refined Mean MCM of 3.8. Finally, we calculated the Median MCM. This is simply a Higher Than/Lower Than equation. Since there was an even number, the 2 middle were used and averaged. This multiplier came out to 6.2.
The three multipliers give us a realistic range of possibilities for valuation of NASV once it achieves listing on the NYSE:AMEX. The potential market cap will be now calculated as determined by the companies it owns. First, we know the JD Field Services acquisition is completed, so we will calculate based on the revenue forecast from JD alone.
In 2013 JD had gross income of $19.4 million. Using the multipliers above, the range of Market Cap for NASV would be between $73.7 Million and $129.9 Million. Post reverse split, figuring there will be roughly 4 million issued and outstanding (“OS”) shares left, this translates into a PPS of between $18.42 and $32.47 per share. Although the estimates for 2014 revenues are significantly higher, I think we would all be satisfied with a PPS in this range.
Factoring in the recent Purchase and Sale agreements for Devoe Contracting of Colorado and MonDak Tank of North Dakota, we have a much bigger Price per Share potential. In 2013, Devoe had gross income of $15 million and MonDak Tank had $7.1 million. Combined with JD Field Services, that would bring the total gross income of NAS up to $41.5 million. The Market Capitalization range becomes $157.7 to Million - $278.0 Million, while the Price per Share range grows to between $39.42 and $69.5.
Interestingly, to prove how the move to the NYSE:AMEX allows the Company to reach its true pricing potential or conversely to see what the improvement in today’s pre-split pricing would be, divide the above projected per share prices by the reverse split factor of 200. With JD Field Services revenue alone we would be at $.09 to $.16. Adding Devoe and MonDak revenues we would be at $.19 to $.34.
The above information is from my own Due Diligence and is my own opinion. I am Long in NASV. I did not receive compensation for posting this opinion. This is not a solicitation for investment. This is only an awareness statement of my opinion of a company I feel is undervalued. Please do your own Due Diligence before investing.
Contact:
Jeff Krueger
3)http://www.stockmarketmediagroup.com/wp-content/uploads/2014/05/NAS-Inc.-Research-Report.pdf
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