Check it out for yourself. Metabolix and ADM have a real production facility located next to their feedstock and a low cost producing cogeneration plant for steam and electricity.
Cereplast has converted an old warehouse for 7 million. I couldn't find any photos of the warehouse. Any of the CERP pumpers have any?
Smells like another one of ADMs so called competitors from California to me... The one who thinks its cheaper to haul three cars of corn out to Cali instead of one car of ethanol.
What a pleasure to read such great prose and clear thinking. Your emphasis on long-term is important, because this technology is futuristic and needed. There are too many posts about getting in and out. If one is sufficiently talented to make $$$ that way, bravo. I am in for the
multi-bagger. Thank you for your thoughts.
I don’t know the actual answers to your questions but I have my guesses… 1) several weren’t ready to trust a new and more expensive material without significant amounts of testing; IMHO, the FDA approval opened the flood gates, 2) companies often pick new materials for new products and don’t upgrade their old products lines unless they see a clear financial advantage; creation and testing of new products take time fortunately many are already testing their new products with Mirel, 3) the FDA approval doesn’t just help sell to companies that require food contact, it validates Mirel for use in all types of consumer contact… Would you let your baby play with a toy made of Mirel; you might if you knew it was an FDA approved substance.
I’ve missed several great investments over the years because I got bored and moved on. This one reminds me of every single one that soared to heights unimaginable by the average investor. Hopefully my hands are strong enough to hold on cause the really great ones often move up a little down a little and sideways for years before they achieve greatness. It takes a lot of patience.
The next time you walk around your house count the number of items that are all, or in part, made of plastic… The number in my house is huge and the majority of it won’t biodegrade when planted ‘-)
When I open my fridge and freezer I can find another few dozen items that are made of plastic.
The world is moving towards green and Mirel is the right product at the right time. Add in FDA approval for food contact and the possibilities are near endless.
The state of California is nearly ready to ban plastic bags but there are tons of other things that should be banned because they are all made of good old non biodegradable plastic… As California begins to think and go green others will follow ‘-)
I truly believe that the Metabolix / Archer Daniels team is going to turn into a real winner for everyone and that Mirel is as important for the Environment as the Da Vinci was for the operating room (a big winner for everyone).
Could Metabolix become a 20 bagger like Intuitive surgical? Yes, but it will probably take twice as long because most still aren’t “thinking green”… Personally I’ll be looking to double down on my investment if we ever get a really nice pullback; until then I hold a very nice core position and am looking forward to years of long term growth.
Good luck to all long term investors
Actually the Cereplast plant in Indiana is in corn country too and has rail spurs that lead up to the plant. The california facility is just a testing plant. I'm in both, but more in MBLX. I like the whole story. Now we just need oil to spike up!
Huge difference between CERP and MBLX. CERP is a one trick pony, with essentially no R&D and pretty flat, small revenue. It's cheap, but it is also only compostable.
MBLX has the science, even though it hasn't yet translated to revenues.
'Innovate or die'. CERP is not going to innovate.
I missed the big run on MBLX but I still want to see big contracts. There will be more room to run then. Management has said sales won't really materialize till 2011 so this price level isn't a solid floor either.
Do you have anymore info on the Indiana plant? I tried digging some up on the web and come up only with old press releases... It takes some time to do what ADM and MBLX have done in Clinton, especially on a larger scale.
I like how we ended right at the $15 Option expiration this week.