Coliseum Capital Ups Position in Advanced Emissions Solutions, Inc. (ADES)

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Coliseum Capital, a fund managed by Christopher Shackelton and Adam Gray, considerably surged its stake in Advanced Emissions Solutions, Inc. (NASDAQ:ADES). According to a recent 13G filing with the Securities and Exchange Commision, the fund currently holds 1.43 million shares, currently worth around $28.10 million, which represents 6.60% of the company’s total market value. Earlier the fund disclosed owning almost 230,000 shares of  Advanced Emissions Solutions.

Advanced Emissions Solutions

Based in Highlands Ranch, Colorado, Advanced Emissions Solutions, Inc. (NASDAQ:ADES) is a US holding entity for a range of companies specialized in clean coal technology and associated specialty chemicals, providing emissions solutions to customers in the power generation and other industries. Earlier this year, the company’s Board of Directors approved a for a two-for-one stock split, which, according to the company’s CEO, Dr. Michael D. Durham, reflects management’s strong belief in the company’s continued growth and development of the markets for the emission control technologies, as evidenced by the fact that the stock price increased more than 200% in 2013.

On April 3, 2014, Advanced Emissions Solutions, Inc. (NASDAQ:ADES) received a notice from the NASDAQ due to failure to file the annual report in Form 10-K for the fiscal year ended December 31, 2013. Trading at an Enterprise Value to EBITDA ratio of around 42.40, the company generated losses of $0.66 per share and Free Cash Flow of -$44.00 million in 2012 and is expected to deliver losses of $0.13 per share for fiscal 2013. The company’s shares lost 17.00% of their value year to date, currently quoted at around $19.65. Market analysts recommend that investors buy  Advanced Emissions’ stock, estimating that the company will generate EPS of $0.83 in 2014 and setting a 1 year target price of more than $30.00 per share.

Michael Barnes and Arif Inayatullah-led Tricadia Capital Management, which owns almost 256,500 shares in Advanced Emissions Solutions, Inc. (NASDAQ:ADES), is another shareholder of the company.

Activist hedge fund Coliseum Capital holds a $235.00 million worth equity portfolio, more than half of which is invested in healthcare stocks. The fund owns a large position of 2.56 million shares in LHC Group, Inc. (NASDAQ:LHCG), a provider of post-acute health care services.

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