Ian Cassel
Long only, special situations, growth at reasonable price, research analyst

Greystone Logistics: A Classic Valuation Gap

Greystone Logistics (OTCQB:GLGI) is the only public company focused on manufacturing and leasing plastic pallets, the fastest growing segment of the $9.5 billion pallet industry. The packaging and container industry currently trades at an average Price/Earnings ratio of 19.8. Greystone Logistics is currently trading at 5.5x TTM EPS of 0.09, and 3.5x next year's EPS guidance of 0.14. The purpose of this article isn't to conclude an irrational multiple but to propose that if GLGI simply trades at half the peer group multiple, the current stock price represents a significant opportunity for investors. Similarly to when Sean Marconi and I highlighted Vertex Energy (NASDAQ:VTNR) at $1.30 six months ago (now $3.90), Greystone Logistics has a similar...

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