I believe this is what they are going for in roofing, siding, decking. They had a presentation a few months ago at a PVC conference which was very technical and I'm not the right person to explain it. As I understand what they presented it boils down to:
Companies adding PHA in small quantities to PVC products can improve UV resistance, flexibility, strength and resistance to water saturation while adding very little (to even reducing) product costs. (While PHA might be more expensive, it lets them use much more cheaper and recycled material as well).
Hopefully MBLX goes into detail here in the next call. My guess is the performance attributes of aPHA have a lot of big producers of PVC construction related products (especially where exposed to the outdoors) looking seriously at aPHA but if the sale is "we improve the long term performance of your product and help with costs" then you are targeting products that must be tested for long term use. Until a few agree their tests show aPHA improves their product greatly, I imagine sales will take a long time...but will pay off in big bulk deals.
If it becomes established thinking that aPHA works as promised then sales in those niches should be quicker.
Like the flooring sale, I'm not so much excited about the scope of the first one (no idea, might be huge but doubt it starts off that way). But any news that their first sales partner found an advantage using aPHA will likely lead to much faster sales to others provided MBLX delivers and aPHA works as the first client researched.
Sentiment: Strong Buy
I believe you have a few things wrong here but I understand where it could get mixed up (as they have yet to offer much detail).
The 400K sales have little to do with the first flooring deal. That first flooring deal came in during Q1 and has not been explained in terms of scope.
The Q4 increase was mostly attributed to PHA in aquatic environment sales. And that isn't limited by any means to home aquariums. I believe the main use is PHA trays holding large rows of plants that are used to filter bad water sources (tainted lakes/ponds). Also, beyond the floating plant holders, I don't know if there was much home aquarium use as much as filtration and nutrient/chemical delivery devices to things like golf course lakes (a PHA holder that contains stuff which gets eaten away over time by microbes).
While several states have blocked microbreads in any form, there was good third party data from CA studying PHA which showed it degrading at the similar rates to a leaf used as the baseline (PLA did not do nearly as well). Microbes seem to really like the stuff. So my point is if they get good data that it is working great in these trays my guess is they can revive the opportunity in microbeads as well.
I'm not that big on that market's potential regardless but I am positive Honeywell may have other uses for PHA if it demonstrates doing what MBLX says it does.
Sentiment: Strong Buy
Good to see you post again. You've always been one of the most informed guys on the MBLX board and I'm happy to see you return.
During their last investment presentation, they announced that they were doing business with Sterling--a very small maker of floor mats for rolling chairs. I believe that they said that they had done $400K in business with them but I would have to double check.
I am going to respectfully disagree with you on two points. I think the water filtration is de minimis. It's smallish stuff for home aquariums. Also, I think microbeads are completely 100% deader than a door post due to recently enacted federal legislation.
It does appear that they have a major flooring customer in the works. My guess is that the delay was a result of EPA certification. The prospect of releasing this information might e a component of the stock's recent rise.
Long term--the future of this company is Yield 10. Take a look at the two guys' resumes who they put on the board. First rate.
Again...Welcome back Even if we disagree it's nice to have a well informed guy's views.
Any information on how their blended products affect stability of PVC products? If warpage, shrinkage, and UV stability improve, that would be big
Pretty good things have happened.
On the small side a new group initiated coverage. Hopefully that is a start.
On the medium side it seems MBLX increased Q4 sales primarily through the group doing water filtration buying more PHA. While I don't know how big this market will be, success here is good news for PHA as a compostable product. The microbead thing may gain traction with proven success. More importantly there remains large potential in mulch film or plastics that may hit oceans if you can prove PHA being successful in some marine composting target market.
On the large side MBLX announced its first flooring client. Size is unknown. It seems the deal was closed in early Q1 so it may have slightly skipped but even if that's the case...MBLX was in a rare position that slight slippage was okay as I suspect production was only recently expanding. I don't know how much color they will give this client on the next CC as that is for FY2015 but it seems to be extremely good news. Even if the client were small in initial demand, the sector is huge and any proven success there with aPHA would likely scale up. I also believe they have another flooring customer in final testing per past MBLX comments and the two flooring opportunities are in different areas of aPHA use so they are leading multiple avenues of other interest.
There seems to be a lot to discuss at the next call. Hopefully they have better traction now in decking, siding and roofing. Also curious how things are going with the new packaging coating opportunities.
Sentiment: Strong Buy
rumors, whispers, speculation or leaked insider information.. you decide
all I know for sure is it is a nice trend to see; especially if you're long
regarding the V bottom question; it's starting to look more like a 'U'
anyone burying her is still buying close to lifetime lows
insiders have paid more over and over again
investors have paid more " " "
shorts have sold higher " " "
all need some news
I love Warren Buffet but....sometimes investing in stock that no one understands is a good thing. IMO. Signed.....old fart.
I think your question about "the slight recovery" is valid and deserves some response.
The low point in late Jan was probably due to the fact that there had been no news since the CC in mid Dec. and investors being aware of demands on operating cash naturally started to lose hope that sufficient progress was being made to turn MBLX around in time.
Since then there have been real indications of both production and commercial progress. Even though these have been small steps they are clearly in the right direction and rekindled optimism for some investors.
Add to that the fact that the research firm of Rodman and Renshaw initiated coverage of MBLX in early Feb with a buy recommendation and a stock price target of $3.00 you have the ingredients for the short term up trend.
A daily player here could have bought below $1 and sold today for a 40% gain... Did any of the shorts here switch sides near the lows?
Anyone have any updated info on this deal ?
When searching all I can find is stuff from around the time of the announcement.
At least we'll be getting some feedback on Wednesday.
I don't think they're making the effort to attend this conference in NYC to tell investors that there has been zero production or commercial progress and that it's game over as some seem to believe.
I hope "no answer Deniro" didn't sell all his holdings on Jan 29 at below .90 cents.
In what direction, down?
These characters are basically the 21st century version of the snake oil salesman.
Until these bozos disclose their respective IRS form 8949 transactions, they are as bogus as the "championship belts" worn by the 16 time World Wrestling Heavyweight champion Nature Boy Ric Flair
Want a winner? Check out ultimatestockalerts (search em) if you are looking for small cap stocks
before the big run. He has alerted me to a bunch of stocks before they took off.
D-bear Did you actually ask for specific information or pose some rhetorical question? Can you give us an idea of your inquiry to MBLX that was ignored? Thanks
Maybe if you learn how to spell the word "class" it might mean something.
What would be your cause of action? Stocks going down in price don't qualify.
Time to call in Patriarch Partners CEO the Diva of Distressed Companies Lynn Tilton to the rescue.
Shaulson, Lynn has no tolerance for fat lazy men.