Is DEEP GREEN WASTE & RECYCLING INC (OTCMKTS:DGWR) A Buy After Major Correction?

Shares of DEEP GREEN WASTE & RECYCLING INC (OTCMKTS:DGWR) are finally ticking higher, after a major correction on rising to record highs of $1.12 a share. Trading volume has significantly increased as investors take note of the company’s improved financial position and growing waste management business.Key Support & Resistance Levels The stock is currently trading in an uptrend after breaking a key resistance level. DGWR Daily ChartFor those who don’t know what the company does in pursuit of growth and shareholder value, here is a brief description.Deep Green Waste Recycling Description Deep Green Waste & Recycling is a full-service waste and recycling company headquartered in Wyoming U.S.A. The company offers waste management and recycling services to large commercial properties across the country. It serves retail malls, shopping centers, hospitals, hotels, correctional institutions as well as office parks.It is also engaged in the sale of various types of waste handling equipment.[embed]https://www.youtube.com/watch?v=eikfArKjQ50&t=13s[/embed]$1.8 Million Chute Revenue Deal Renewed investor interest in the waste management company has to do with a chute deal that one of its recently acquired subsidiary, Compaction and Recycling Equipment (CARE) signed, recently. The deal paves way for the company to gain access to $1.8 million worth of new project deals through its chute division in the Pacific Northwest.

“We are very pleased with the rapid start with chutes for 2018. Our sales and installation team has done a great job getting out of the blocks for this year and has already established a track record of delivering a great finished product for the general contractors. These new project starts cover 40 different properties which are all potential clients for our managed services business,” said David Bradford, Chief Operating Officer.

Deep Green Acquisition Strategy Deep Green Waste & Recycling acquired CARE with the aim of growing its fixed waste equipment sales and service equipment business. The unit designs, engineers, fabricates, installs and services waste management equipment.CARE also fits Deep Green’s acquisition strategy that seeks to roll out a number of profitable waste equipment and services companies. The wholly owned subsidiary will help the company become a vertically integrated firm with the expansion of operations in Northwest.The $1.8 million Chute Deal comes just days after the company signed distributor contract with Veolia North America. The deal is set to expand the company’s waste solution products and service business. Under the terms of the agreement, Deep Green Waste Recycling is to include Veolia’s RecyclePak Brand into its portfolio of enhanced waste management services.Integration of the Veolia solution should go a long way in providing additional services to Deep Green clients thus help grow the popularity of its service. The solution is perfectly suited for the disposal of fluorescent lamps, ballasts, and computer electronics.

“Not only is this a valuable service for our customers to help them be environmentally responsible and legally compliant, but it is a naturally accretive contributor to our revenue and cash flow, one more positive thing we're doing for the environment, and a great market expander for Deep Green,” said CEO Bill Edmonds.

Trimming Operation Costs In an attempt to reduce operational costs and drive margin growth, Deep Green Waste & Recycling has completed the acquisition of Columbia Financial Services Inc. The compactor rental and leasing company will help trim the costs that Deep Green Waster & Recycling incurs on leasing trash compactors from third parties.The acquisition should also go a long way in helping expand the company’s overall offerings in the market, by providing waste equipment procurement and financing solutions. According to the Chief Executive Officer, Columbia Financial Services offers a long-term stable and growing cash flow business that should help support the parent company bottom line.Columbia Financial Services won’t be the last acquisition as part of Deep Green Waste& Recycle acquisition strategy. The company’s balance sheet has already received a major boost on the conversion of $873,773 of principal and accrued interest into 4.8 million of restricted shares of common stock.The conversion reduces the amount of money that the company has to pay on interest expense, a relief that allows it to use available cash to pursue growth opportunities through acquisitions. The conversion also demonstrates growing debt holder’s confidence in the company’s growth prospects.What Next Deep Green Waste & Recycling acquisition strategy and cost reduction push are what makes it an exciting pick at the current valuation levels. The company has been able to expand its business portfolio with a string of acquisitions, which should go a long way in strengthening its revenue base.In addition to creating value for customers, the combined businesses should generate value to shareholders on increased revenue and cash flow. That said, the stock should continue powering high as investors take note of the company’s growing waste management business and solid financial position.We will be updating our subscribers as soon as we know more. For the latest updates on DGWR, sign up below!Disclosure: We have no position in DGWR and have not been compensated for this article.