Investigating the EWS drop of March 23rd

Company: Environmental waste international
Listings :TSXV , US OTC
Ticker: $EWS $YEWTF 
Market cap at time of publication: $85 MCD
Stock price at time of publication: 0.34 CAD
Business: Tyre and waste recycling through reverse polymerization
TAM Market size: 158 billion $
Comparable peer : Scandinavian Enviro systems $SES

The share price of Environmental Waste International dropped sharply ,and at first glance unexplainably, on 23/3 2021 despite great news on 22/3 2021 about a Joint Venture which would enable the company to gain its first commercial facility in Ontario by way of a 10 million CAD investment by Joint Venture partner Torreco. With 3 additional plants commited by Torreco, the commercial plant being finalized in Sault Ste Marie, Ontario and the Nyborg plant about to be built by Windspace in Denmark EWS as of now has 5 facilities planned.

I’ve since been looking for an explanation for this drop and I think i’ve found it. There was a very inbalanced article written in a local newspaper about EWI on 23/3 .

I’ve read this article several times, and found that it is seriously imbalanced and selectively chooses information to report on. I verified some information which I would like to report:

-The article talks about the emissions from the factory and fails to report that the total Carbon Dioxide emission equivalent from the factory is the same as the CO2e generated from two typical households.

-The article mentions the noise pollution and fails to highlight that the factory is located in an industrial area that is close to Algoma Steel factory.

-The article bundles the EWS technology with thermal treatment of tires (including pyrolysis), which is not fair. As shown in a very good article from Seekingalpha , the technology here is far more environmentally friendly compared to other “thermal treatment of tires”.

-The article does not address the problems associated with not recycling the tires; an article about tire recycling that does not address these problems, IMHO, is not a balanced one.

-The article mentions the storage of the tires, and fails to confirm that the tires will be stored in shredded format, which is far more environmentally friendly than the traditional storage of tires.

-The article also fails to report that the emissions from producing the raw material from tires using the EWS technology is 70% less that the emissions of producing the same material in virgin form.

As a result of this I decided to add to my position after this drop. I believe EWS has a very very bright future with many announcements to come shortly as I also explained in my recent article on this company.

 I own shares in this company personally and this is not to be considered financial advise, always do your own research!

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