Trump Is Weighing On Midwest Energy Emissions Corp (OTCMKTS:MEEC), But Not For Long

Way back in July 2016, we highlighted Midwest Energy Emissions Corp (OTCMKTS:MEEC) as being a company to keep an eye on in the energy sector. At that time, it was trading for a little over a dollar a share. During the months subsequent to our coverage, and peaking on September 19, the company ran up to trade for $1.8 a piece, a gain of 80% across the third quarter of 2016.Form these highs, however, it declined throughout the latter quarter of 2016, and again throughout the first quarter of this year, and currently trades just shy of $0.99.In the background, however, and irrespective of the action we've seen in the company's PPS, Midwest Energy has made strides towards revenue expansion, and we see the company's share price revaluing during the coming twelve months, towards, and potentially above and beyond, the above mentioned $1.8 highs.So why has the company taken a hit?Well, it's tough to say for sure, but we're going to take a stab in the dark and suggest it's something to do with Donald Trump being in the White House. This is an energy company, sure, but it's a company that makes its money from clean energy and emissions mandates in the US (we'll get to this in more detail shortly). In the run up to the election, and subsequent to his appointment as Commander in Chief, Trump hasn’t exactly championed the clean energy drive.That's a sentiment driven shift, however, and it's not one that should be really impacting Midwest Energy. To understand why, it's first important to understand how the company operates.To simplify – it's built a technology that can reduce mercury output at power plants. Why is this important? Because in April 2015, the US Environmental Protection Agency signed off on what’s called the Mercury and Air Toxics Standards (MATS) rule. Basically, all power plants that produce more than 25 megawatts need to reduce their mercury emissions by circa 90% before April 2019.Midwest Energy's technology can help them do this, and the potential for revenue generation for the company is only limited by the 850 or so plants that need to act to comply by the cut off date.In other words, between 2015 and 2019, Midwest Energy's sales team's remit is to go to as many of these plants as possible, pitch, sell and get said plant to pay for installation. Without MATS in place, it would be a tough sell. With MATS in place, it's a no brainer.And revenues support this latter statement.During 2015, the company generated $12.6 million in full year revenues. During 2016, this rose to $32.3 million. Based on the just released guidance, management expects full year 2017 revenues to come in at somewhere between $60 to $70 million. That's an increase of 450% between 2015-2017 if the company can hit on the top end of its projections.As we've said, we suspect the Trump administration may be factoring in to sentiment with this one, and we think this is what's keeping the company from soaring on the release of its revenues guidance. Trump hasn’t been great for the EPA to date, and rules that the EPA put into place (including the MATS rule we're focusing on here) are looking less like a sure thing than they did just a couple of years ago.With that said, the chances of Trump reversing MATS are very slim (if at all) and so while sentiment may be depressing companies in this sector, the reality hasn’t really altered all that much.This, then, is why we think that Midwest Energy is set for a near term revaluation.We will be updating our subscribers as soon as we know more. For the latest updates on MEEC, sign up below!Disclosure: We have no position in MEEC and have not been compensated for this article.