Cereplast is a startup. There is nothing unusual in these
Cereplast is a startup. There is nothing unusual in these type businesses operating for years without producing a profit. We are on the cusp of simply enormous revenues and we have very real prospects of profitability 2014.
Some here want to talk about anything but the prospects of the company and the stock.
Let's see. . .
1. Catching the wave of first world environmentalism as plastics of one type or another are banned all over Europe and North America.
2. Perfectly positioned for the anti plastic fever that is hitting the second world as they face the very real problems of inadequate waste disposal systems.
3. Rising oil prices that make bio plastics not only competitive but actually cheaper than petroleum based plastics.
4. An existing manufacturing plant in North America that is ramping up production. A facility ideally located in Italy and capable of beginning production in a very short time frame. Plans for a factory in India that were at one time so advanced that the CEO expected Indian production before Italian production.
5. Partnerships and joint ventures in Brazil ready to explode. Brazil is expected to be the largest producer of bio plastics on the globe. That makes four continents on which Cereplast has a footprint.
6. Mr. Scheer - CEO of Cereplast - created the Biodegradable Products Institute (BPI) which sets the industry wide standards for bio plastics. He has worked with the biodegradable industry since 1994. He is the Steve Jobs of bio plastics. A man with a vision who has worked tirelessly for 17 years to create this industry.
7. Three dozen Indian companies working out the details of making a wide range of consumer and industrial products from Cereplast's resins. Once Indian companies begin production, their experience will speed the production of these products in other countries AND create a huge export market outside India for products made from bio plastics.
8. Numerous patents for bio plastic formulas including some very exciting work with industrial algae. I predict that the algae based bio plastics will be much cheaper than corn based plastics and so does Cereplast. It has spun off an entire division devoted to algae based bio plastics.
Industrial algae is the future. At least Solazyme thinks so and guess what, so does Archer Daniels Midland which has given the equivalent of an oil refinery to Solazyme.
Guess where the biggest market is for Solazyme's oils produced from algae. That's right. Brazil. Remember Brazil? Projected to be the biggest producer of bio plastics on the planet?
9. How big is the worldwide market for plastics? One trillion dollars per year. That is the market we are going after. One trillion dollars per year.
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