honestly, look at the chart for cerp and tell me if u have seen a better chart in soem time. u helped me and hopefully i can help u... tmrw and the next few days months should be big for cerp... they have relationships in europe and business there and italy just banned plastic bags.... looks like MMs accumulating and just check the chart and if i am wrong tell me.. flip the chart upside down and check the buys on every drop... thx bro
Cereplast (CERP) and SZYM are widely different companies. But, they have a commonality in that they are ahead of their time. In my estimate, few consumers and investors are aware of their core technologies and the emerging national and global demand.
For CERP, they specialize in plant-based resins used for plastic manufacturing, rather than traditional fossil-fuel based resins used for plastic manufacturing up to this point. For those who don't know much about the manufacturing of plastic products, resins are the raw material that get put into the plastic manufacturing equipment to create the final product (bags or more durable plastics that can be used in applications that require a harder material. The general public and investment community probably has never been introduced to how a typical plastic manufacturing process works to produce product. The general public and investment community is also probably not consciously thinking about plastics that they use as originally coming from barrels of oil, i.e. fossil fuels obtained domestically, internationally, or from the bottom of the sea. In my opinion, we as a civilization just use plastic without thinking about where it originally came from and the consequences it has on the environment and economically. Only recently has this begun to change, as the Italian government's recent decree and newly imposed sanctions on banning fossil-fuel based, single use bags.
Cereplast also specialize in 100% compostable/biodegradeable plastic resins that can be manufactured into products like bags and even containers. Instead of 100s to 1000s of years for the products to break down back into soil, the 100% compostable products break down in a compost pile or landfill within weeks or months. Cereplast is not the first to pioneer this, but they are one of the first. And, unlike NatureWorks LLC, which had tons of money through partial ownership with Cargill, Cereplast was its own company that had to stand on its own as a small business. I repeat, small business with far less than 100 employees. Cereplast did fall on some hard times, but partially because the demand for their product was not high enough to support revenues.
Cereplast also specializes in durable plastic resins that are a hybrid of traditional fossil-fuel based resins and plant-based resins. The durable plastic resins are not compostable/biodegradeable, but the provide the benefit of reducing fossil-fuel based resins by blending in up to 50% plant-based starches. Recently, CERP has created a durable hybrid plastic that blends spent algae cells from industrial production into the fossil-fuel based resins.
This is now changing. Increasingly we are finally seeing plant-based resins turned into plastics as real products that people use. One of CERP's business is to replace fossil-fuel based resin for use in products like bags, which the Italian government and other municipalities are now mandating. The other line of CERP's business is to reduce the raw material demand for fossil-fuel based resins. The very concept of using a durable plastic product, like a baby carrier or a shovel, that is partially made of either plant-based starches or algae is revolutionary to both consumers and investors. Although, Cereplast arrived on the scene as a single player and arrived a bit too early for strong initial sales, it is now an established player in the field. But, they are small, compared to other bioplastic producers and will have some of these marketing and distribution channels to overcome. Currently, with a 4 cent stock price, there has been rapid buying to drive a once penny stock up to to a now 4 cent stock, where the price support seems to be strong.
I ramble on and on like this, because Solazyme was also well ahead of its time. It's clear to long Solazyme investors the magnitude of the technology that they created. But, I would guess that when people think of industrial algae, they think of acres and acres of land that are required, such as with Algenol (A great company). But, far fewer people in the general public and the investment community understand that Solazyme has figured out how to harness the power of algae in chemical reactors/fermentors that are contained in a small footprint of space. SZYM has simply been lightyears ahead most people's awareness of what they are able to accomplish in a very small space. But, little do they know that a new Apple or Amazon is being created in SZYM's pioneering.
CERP and SZYM are different companies with different stories. But, they share the story of stagnant or trouble stock history. There is no doubt SZYM is going to skyrocket in due time. With CERP, they have more competition and from bigger players. Still, I believe they are the first to pioneer incorporating spent algae cells from industrial processes, such as spent algae cells from SZYM. This is critical, because it widens their base of raw materials beyond plant starches that might compete with the food suppy.
In summary, I hope CERP's management can carry itself and turn the corner through the hard times of getting to market too early and perhaps some poor business decisions. But, even with the larger bioplastic manufacturers around, I have to believe there is plenty of space for CERP to increase revenue, become profitable, and become a household-recognized name like SZYM will someday become.
By the way, I was pretty frustrated that the State of the Union address covered very little of these exciting developments. I'm also certain that most people graduating from American schools have been taught little to anything about where plastic comes from and the necessary field of bioplastics and oils generated by algae. I'm also fairly certain that most adults have not had this education either. But thankfully Italy, US states like California and Oregon, and municipalities are finally having the sense to mandate that things be changed. It simply doesn't make sense, environmentally or economically, to pull oil out of the ground that was created over millions of years, transport it across the globe, process it, and put it through fancy machines to make a plastic so that people can have a quick drink of water and then throw the bottle away in a landfill, in the likely event it doesn't get recycled. The same line of thinking applies to SZYM's demonstrated and emerging technology.
Just a couple of thoughts anyway. :)
Sentiment: Strong Buy
The biggest difference that you happened to neglect is that CERP only had $237,000 in cash & $13 million in long-term debt as of September 2012. It's capital surplus also keeps going up as the company dilutes the heck out of shareholders in order to stay alive as its losses continue to accrue.
There is no comparison. So stick to your own board.
BTW, just to be clear, i have never owned a penny stock prior to cerp... i had all of my dough in szym at 7.23 and opk at 4.91 (which i suggested to the board)... u all know where szym is and i expect it to go back toward 12... opk is over 6.50 but i exited at around 6.23... i picked up cerp around .03 and the chart is a killer and they are developing their business... trust me i am not bragging as i view this as one of the best most informed boards out there and i learn from this board... i was disappointed when "teach" got frustrated (we all do) and i thought he flew (turns out not far for long - good decision)... best...
Sentiment: Strong Buy