John Leonard, CFA
Special situations, micro-cap, contrarian, CFA

Appliance Recycling Centers Of America Is Undervalued With Multiple Near Term Catalysts

Editors' Note: This article covers a stock trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.

Key takeaways

  • The market still views Appliance Recycling Centers of America (NASDAQ:ARCI) as a low margin appliance retailer with limited growth prospects rather than a fast growing and high margin pollution control company with a bullish secular outlook.
  • Moreover, continued strong growth in the recycling segment along with increased operating efficiencies and lower SG&A expenses should drive a significant increase in EBITDA.
  • Furthermore, the recent turnaround in the retail segment should result in a contribution to growth going forward rather than a detraction.

Company overview...

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