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PureCycle Technologies, Inc. (PCT)

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12.99+0.23 (+1.80%)
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  • Y
    You
    Cowen price target of $31. No details of their report on how that arrived at that valuation price but it is nice to see additional coverage with a target over 100% higher than the current price.

    The short holders better hope that more owners want to dump their shares vs believing this company is worth dramatically more. I just don't see how they are going to cover 14 million shares anywhere near these prices.
  • T
    Techfan20
    Cowen analyst Thomas Boyes initiated PCT with an Outperform rating and a price target of $31
    Bullish
  • T
    Techfan20
    PCT just trademarked PUREZERO. Good sign!
  • Y
    You
    Twice today Yahoo has deleted my posts with links. In any case, Purecycle has an MOU with Mitsui for a JV in Japan.
  • M
    M
    dit word op termijn een parel
  • T
    Techfan20
    Good new is coming soon. Yesterday PureCycle tweeted, "Putting the finishing touches on a new program here at PureCycle. We can't wait to kick it off for you all."
  • L
    Larson
    https://www.youtube.com/watch?v=RnH2ygl9OmE

    I wonder if this is what PCT's feedstock will look like?
    Why recycling efforts are getting trashed: "This is a total no-no"
    www.youtube.com
  • L
    Larson
    Short covering rally today? Why the rise?
  • J
    Josh
    Continued level of short interest is worrying...
  • T
    Techfan20
    Few PCT shares available to short
    Bullish
  • L
    Larson
    re: feedstock

    Was a major issue not "clean" feedstock? Per the Hindenberg report: https://hindenburgresearch.com/purecycle/

    [START QUOTE]""""Saunders: “There’s Not Enough Non-Contaminated PP Scrap To Support These Processes”
    We asked Saunders about PureCycle’s claims, process and ability to source the PP necessary to run its process at peak efficiency. He told us:

    “The problem I see with chemical recycling – and I´m not an expert in this process but I am an expert in PP raw materials – there is not enough non-contaminated PP scrap to support these processes. So you´re going to get a wide range of materials that have varying degrees of other resin contamination.”

    In his previously referenced interview, P&G’s Layman brought up contamination and said the contamination the company was currently removing during processing was “fairly low” and “less than 5%”.

    Saunders replied to us that this low level of contamination in scrap PP simply doesn’t exist in volume:

    “And what´s stated publicly by PureCycle themselves is that the facility works well up to 5 percent contamination. I´ve been buying PP scrap for 30 years and I´m not aware of any PP scrap in volume that has any less than 5% contamination in the world.”

    Saunders estimated the average levels of contamination in post-consumer PP were between 20%-25% including residues in the container, paper labels, glue and other elements.""""[END QUOTE]

    Not sure if this has been addressed by PCT or not as a valid concern..?? Again, my brain keeps going back to the Renewlogy problem and wondering if this could also become a PCT problem of having contaminated plastic derail the recycling/purification process..??
    PureCycle is the latest zero-revenue, ESG-themed SPAC taken public with a bold story about how it will someday revolutionize the plastics recycling industry.The company’s insiders and SPAC sponsors…
    PureCycle is the latest zero-revenue, ESG-themed SPAC taken public with a bold story about how it will someday revolutionize the plastics recycling industry.The company’s insiders and SPAC sponsors…
    hindenburgresearch.com
  • L
    Larson
    https://www.reuters.com/article/us-environment-plastic-oil-recycling/special-report-the-recycling-myth-big-oils-solution-for-plastic-waste-littered-with-failure-idUSKBN2EZ1EF

    Purecycle Technologies is mentioned in this article from July. This quote worries me:
    """In all, Reuters examined 30 projects by two-dozen advanced recycling companies across three continents and interviewed more than 40 people with direct knowledge of this industry, including plastics industry officials, recycling executives, scientists, policymakers and analysts.

    Most of those endeavors are agreements between small advanced recycling firms and big oil and chemical companies or consumer brands, including ExxonMobil Corp, Royal Dutch Shell Plc and Procter & Gamble Co (P&G). All are still operating on a modest scale or have closed down, and more than half are years behind schedule on previously announced commercial plans, according to the Reuters review. Three advanced recycling companies that have gone public in the last year have seen their stock prices decline since their market debuts."""

    On the other hand, it seems to suggest (if I'm understanding correctly) that "pyrolysis" was used by most of the companies reviewed by Reuters doing "advanced recycling." Purecycle seems to use a different approach from what I can tell. Thus, past failures and difficulties may not apply with PCT's approach perhaps.

    I do wonder about the cleanliness of their feedstock and if that will be an issue.
    In early 2018, residents of Boise, Idaho were told by city officials that a breakthrough technology could transform their hard-to-recycle plastic waste into low-polluting fuel. The program, backed by Dow Inc, one of the world’s biggest plastics produ
    In early 2018, residents of Boise, Idaho were told by city officials that a breakthrough technology could transform their hard-to-recycle plastic waste into low-polluting fuel. The program, backed by Dow Inc, one of the world’s biggest plastics produ
    www.reuters.com
  • L
    Larson
    I have a small position and am on the fence about adding more. I have some questions:

    1.) If P&G's technology that is licensed to PCT is so groundbreaking and profitable as a new business model, then why didn't P&G directly develop it themselves into a lucrative recycling business?
    2.) What is the percentage of profit sharing between P&G and PCT?
    3.) Why has it taken so long to commercially implement recycling of polypropylene from 2012 when P&G first developed the technology? This is a recent (Aug. 26) video released on PCT's YouTube channel that has Tamsin Ettefagh - Chief Sustainability Officer - breaking down the history of PCT and what they do: https://www.youtube.com/watch?v=7CW6IiPF_c0

    You can see from the timeline that after 2012 when P&G developed the technology PCT is licensing, it took until 2015 before PCT acquired that license (it sounds like within that 3 year window, P&G may have been refining the tech and getting more patents on it if I'm understanding correctly). Then, in 2015, PCT licensed the technology. From 2015 to 2019, PCT built a FEU (feedstock evaluation unit) - that took 4 years, which seems a long time. After what sounds like a "proof of concept" period, a new plant is now being built in Ironton, OH that won't be ready until late 2022. However, Tamsin mentioned that the new plant is "sold out" 4x. What does that mean? Is it that companies are asking to buy the expected recycled plastic already and have contracts to do so at 4x the expected plant capacity?

    It will have taken 10 years from 2012 for this technology to finally be implemented commercially it seems in late 2022 (if all goes well). Why such a long time-frame? Why didn't P&G and/or PCT just quickly build plant after plant after plant from 2015 onward, especially if this is supposed to be such a lucrative business model?

    Why does it seem everything moves so slowly with this concept? Will it take another 4..10 years to get a second plant (I am being a bit snarky on purpose, but am also serious about time-frames, as revenues - or lack thereof - matter)?
  • S
    Stirley
    PureCycle IPR.

    Checked some of the PCT patents, and more I look this process, the more it looks simple, but I am not in plastic business so maybe someone more expert in this area should check again. Anyway with over 20yr experience in process industry and R&D can see that basic chemical engineer unit operations are used (extraction, dissolution, purification, etc.), nothing special. Existing equipment technology is used, so nothing to invent in that side. Just extracting and dissolving different fractions, and separating, then solvent is recovered and recycled.

    Procter & Gamble is serious company so they probably can protect this IPR family.

    You'll can find patents here: https://patentscope.wipo.int/search/en/structuredSearch.jsf

    Use fields 'Applicant name' and ' Inventor name' => 'Procter & Gamble' and 'Layman John Moncrief'. John seems to be “main brain” behind this.

    You'll get 159 hits. By sorting search I choose only PCT office, and 29 left. Hits according publication date ascending and hits starting from 2017 to newest are concerning PCT.

    E.g. these were quite good:
    WO/2017/003796 METHOD FOR PURIFYING CONTAMINATED POLYPROPYLENE
    WO/2018/118580 METHOD FOR SEPARATING AND PURIFYING POLYMERS FROM RECLAIMED PRODUCT
  • Y
    You
    Yahoo is deleting my posts which is annoying. In any case, short interest in PCT is now over 14 million shares as of Aug 31st. Over 11 days of average trading volume. That is a rather big short position.
  • L
    Larson
    https://seekingalpha.com/article/4429168-purecycle-technologies-stock-pct-passing-on-the-next-nikola

    What do people think of Alex Pitti's SA report back in May? Lots of things in it concerned me, but the thing that comes to mind immediately is the clean feedstock issue. Taken from Pitti's report:
    [BEGIN QUOTE]"""Adding to the questions of whether this recycled PP is actually pure, John stated in his Q&A,

    “The other big area that we have, I would say, in terms of risk is, unlike a lot of other, say, virgin polypropylene production, we are removing waste from the recycled plastic. Because of that, that waste needs to be removed and a lot of it is solid waste … We’re putting a lot of diligence to keep an eye on as we continue to scale, is the ability to continuously remove solids and other foreign debris from the process continuously so that we can get those materials out and produce the virgin-like clean material.""""[END QUOTE]

    This triggered my memory of the Renewlogy problems from the previously posted Reuters articel:
    [BEGIN QUOTE]"""Renewlogy said in an emailed response to Reuters’ questions that it could recycle plastic films. The trouble, it said, was that Boise’s waste was contaminated with other garbage at 10 times the level it was told to expect.

    Boise spokesperson Colin Hickman said the city was not aware of any statements or assurances made to Renewlogy about specific levels of contamination."""[END QUOTE]
    If PCT gets dirty feedstock and cannot clean it effectively & consistently to process into UPRP, then that would be a major set-back. Is this similar to Renewlogy's demise?
    PureCycle Technologies (PCT) has a history of missing projections for the opening of its first scale facility. Therefore, I don't believe in its aggressive long term targets.
    PureCycle Technologies (PCT) has a history of missing projections for the opening of its first scale facility. Therefore, I don't believe in its aggressive long term targets.
    seekingalpha.com
  • Y
    You
    If you look at the price chart of PCT and compare it with DNMR (Danimer) on a year-to-date basis you can basically see that these companies (and others) are all trading as a group. Huge rallies early in the year then big declines. Companies that were getting added to the Russell 2000 all rallied throughout the month of June as people front ran the index rebalancing. In the big picture, none of the news really made much difference for PCT because so little money is actively managed these days.

    I don't have the latest short numbers for DNMR but Muddy Waters put out a short report just recently. I don't have any positions with DNMR and I have not done enough research to have a strong opinion on their technology or strategy. From my perspective, the fate of each company is completely independent but they are not trading that way.

    What I do believe is that PCT is still very much in the "show me" stage with 14+ million shares currently in the camp of "we don't think you can do it with the profits you say you can." We will find out the latest short position on Friday but assume it is has either increased or stayed flat given the recent price movements. We are about 1 week away from the end of Q3 and PureCycle expected to complete a number of things this quarter. I think they need to give us more details on their feedstock suppliers for the GA expansion and the new customers as well. Those two aspects are critical to getting affordable debt financing for the new lines. In addition, PCT announced they were buying feedstock processing equipment for delivery in 2022 so where is that equipment going? Ideally they will be very transparent about who they are working with and the quality of the feedstock they expect to work with.

    I know it is a huge effort to get to 1 billion pounds of capacity but to me that is really just the tip of the iceberg vs what they are capable of doing. Once you have a proven plant design there is no reason you can't replicate that design over and over again quickly to scale capacity. Add in the joint venture partners in Asia and you could easily see another billion pounds of capacity being added in a very short time horizon without Purecycle needing to raise additional equity capital. The leverage on the upside of technical success is just massive.
  • Y
    You
    Some details on equipment selection for Ironton.

    https://press.kraussmaffei.com/en/news/kraussmaffei-supplies-highly-efficient-extrusion-technologies-for-ground-breaking-purecycle-recycling-process

    This looks the specific product that is being used is here.

    https://www.kraussmaffei.com/en/our-products/ze-bluepower

    KraussMaffei has been around for a VERY long time and my guess is they have a reputation for making quality products. They are extremely excited about this sale because in theory Purecycle would like to buy a heck of a lot more of these machines for future plants. Accroding to the press release two machines will provide up to 8 metric tons / hour to the solvent based process. At 100% capacity factor (8 * 2200 * 24 *365) that is about 154 million lb/year. At a 90% capacity factor that is 139 million lbs/year. Ironton is only rated for 119 million pounds of input material per year so this seems like they have sufficient margin in terms of capacity. Seems like they might need something slightly bigger for the 130M lbs/year design. Hard to know based on the limited information provided.

    In any case, as we know more and more details about the builders of the equipment going into these plants we can see these are all very serious industry players. Emerson for plant controls, Gulfspan for process equipment, Miliken for additives/clarifiers, etc. The way I see it, you have a lot of really big companies that stand to make a lot of money selling equipment if/when the PCT plants are successful. The naysayers claim or perhaps believe this is not going to work but I see multiple billion dollar companies that all really want this work and have every incentive to do their part to make sure it does.
    KraussMaffei supplies highly efficient extrusion technologies for ground-Breaking PureCycle recycling process
    press.kraussmaffei.com
  • L
    Larson
    https://twitter.com/InsiderForms/status/1432448312758751233

    Is this an $PCT executive doing insider buying? If so, that is usually a positive sign.
  • L
    Larson
    Growth stocks have been getting punished hard for softer guidance/expectations (let alone misses on estimates). $ZM and $PINS = latest examples Given $PCT has no revenue, negative income and won't have output at its first plant until late-2022, what drives the stock price from now until 2023?