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Dr. John L. Faessel is a seasoned and respected Wall Street professional with industry-wide recognition for expertise in market strategy and analysis. He is widely recognized for his insights in public companies. For over 20-years Dr. Faessel’s ON THE MARKET reports have been widely distributed... More
  • GlyEco, Inc. (GLYE) A New Best Idea For 2012 - A Business Model Of Wonderful Simplicity ― And Astonishing Profit 2 comments
    Feb 13, 2012 10:09 AM | about stocks: GLYE

    Dr. John L. Faessel


    Commentary and Insights

    Just Announced: Renowned Management Makes First Acquisition...*

    World-wide glycol sales are estimated to have topped $25 billion in 2011. Glycols are a liquid chemical used to produce plastics, polyester fibers, antifreeze, an airplane deicer and many other applications. For the first time, the waste created by these five industries can be recycled to "re"- produce refinery grade glycols.

    And, profitability looks to be enormous. Opportunity knocks! Read on…

    GlyEco, Inc. (OTCPK:GLYE) OTCBB

    (OTCPK:GLYE) has invented a patent-pending technology to turn this hazardous waste into profitable green products. There is plenty of waste glycol "feedstock" to recycle (estimated 700 million gallons each year in the USA alone).

    Management? How about the man who helped begin the early consolidation of what is now Waste Management? We're talking about the establishment of a new mega recycling venture here with a management team* that is seasoned in the operational details of big footprint commercial applications. The team is packed with experts in solid waste management, mergers and acquisitions, chemical engineering, and glycol recycling.

    Mr. John Lorenz is a founder, the CEO and Chairman of the Board (19.3% shareholder) of GlyEco (OTCPK:GLYE). Mr. Lorenz founded Environmental Waste of America, Inc. in 1986, where he served as President and CEO between 1986 and 1997 until its merger with Envirofil, Inc. This is the public company which, through a series of mergers and acquisitions, morphed into Waste Management, Inc. (NYSE:WM) NYSE with a market cap of $ 15.5 Billion. Waste Management currently offers environmental services to nearly 20 million customers. Together with its competitor Republic Services, Inc., the companies handle over 50% of the municipal solid waste disposal and recycling in the US.

    (OTCPK:GLYE)'s green chemistry solution to "re"- produce refinery grade glycol (ASTM E1177A Type 1 compliant) has been in development for several years, and now it bears fruit as they are rapidly expanding operations by strategically acquiring the assets of existing profitable recycling businesses. Management is planning to upgrade the acquired plants with the new GlyEco Technology™ to improve efficiency and increase profitability.

    * On Tuesday 2/7/2012, (OTCPK:GLYE) announced it has signed an asset purchase agreement to acquire certain assets of Recycool, Inc. (www.recycool.net). This purchase marks the beginning implementation of GlyEco's strategy for rapid growth through the acquisition of existing profitable recyclers. The acquired facilities will be upgraded with patent-pending GlyEco Technology™, improving production capacity, product quality and profitability. The company expects to expand its customer base and geographical reach at each location.


    Using the above mentioned immensely successful Waste Management roll-up as a model, I believe that we will soon see (OTCPK:GLYE) complete additional and numerous acquisitions along the lines of the just announced Recycool deal. Revenues and profits look to expand exponentially as the acquired assets upgrade to the GlyEco Technology™.

    Why is this recycling process different? GlyEco Certified® recycled glycols are tested by independent labs to meet or exceed ASTM standards for recycled material. There are two published standards for recycled glycols: E1177A Type 2 - recycled glycols that are safe to use in vehicle antifreeze formulations and E1177A Type 1 - recycled glycols that meet the same standards as refinery produced glycol. Learn more about standards for recycled glycol on ASTM's website, click here

    There is plenty of waste material to process. Where does the company intend to sell this recycled material? Demand for high quality recycled product that meets ASTM standards far exceeds supply in every market segment. Additionally, the EPA requires most federal agencies to buy antifreeze with the highest recycled content level practical. Most agencies report a lack of supply to meet their demand. More information on the Comprehensive Procurement Guideline [CPG] mandates from the U.S. Environmental Protection Agency [EPS] can be found here

    GlyEco Technology™ transforms waste glycols, a hazardous material, into profitable green products. This is the only technology that can process and clean all five types of hazardous waste glycols to meet or exceed ASTM standards. Since most polluted glycol is disposed of in our surface waters which can have a devastating impact on aquatic life the GlyEco Technology™ gives their customers a way to reduce waste while caring for the environment at no additional cost to them. Many companies who use glycols relish the idea of advertising their "green" use of high quality recycled glycols and will frequently pay a premium to do just that.

    World-wide consumption of refinery produced ethylene glycol is projected to beat a staggering 5 billion gallons per year. Growth is anticipated to exceed 350 million gallons every year for the next decade. According to ICIS Chemical News, demand will continue to exceed supply largely because of explosive growth in polyester fiber manufacturing, used to make clothing, plastic containers and plastic beverage bottles.

    Here's a snapshot of the world market. China is a big player, consuming more than 2.1 billion gallons of glycol each year to fuel their polyester fiber manufacturing industry. Demand continues to exceed supply with exponential growth predicted in this region. The sales average price in 2011 was approximately $5.69 per gallon, with a 7-year average sales price of about $4.57 per gallon.

    * (OTCPK:GLYE) has assembled a group of accomplished managers each of whom has more than 20-years experience in their field of expertise. The talented team includes business owners and c-level managers from the solid waste, chemical engineering and glycol recycling industries. They provide disposal clients with documented compliance with EPA Hazardous Waste Manifest System and all State and Local regulations, protecting both our environment and their business partners.

    To summarize my thoughts…

    While (OTCPK:GLYE) is a brand spanking new company just beginning to trade, it's been in development for several years and the company has invested $5 million in their patent pending GlyEco Technology™. Management is steeped in know-how and experience in the recycling and waste industry and has done the necessary legwork to acquire the polluted feedstock product in quantity and to organize and establish several processing facilities. (OTCPK:GLYE) is really a technology company with a patent-pending method to produce a recycled "virgin" glycol which can be sold for at least as much as refinery produced glycol. The market size is mind-boggling with both intrinsic demand and built-in supply of staggering proportions and I believe there is looming news flow re acquisitions and expansions that will drive share price. Crucially, margins are very lofty and will lead to exceptional profit potential.

    Keep this story on your front burner as the above combination of planets coming into alignment only happens rarely. Consider an investment to participate-lucrative prospects abound and ground floor participation should yield exceptional rewards.

    I'll have more on this exceptional opportunity in further reports.

    Visit (OTCPK:GLYE)'s comprehensive website: www.glyeco.com

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Additional disclosure: I have no financial affiliation with GlyEco Inc. but I purchased the shares

    Stocks: GLYE
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Comments (2)
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  • Frank Lind
    , contributor
    Comments (90) | Send Message
    How will they make all those acquisitions and build their plant without destroying the share structure?
    19 Aug 2012, 07:13 PM Reply Like
  • Greg Allen
    , contributor
    Comments (55) | Send Message
    I sure wold like to know why the CFO resigned immediately in January....never a good sign.
    16 Mar 2013, 01:47 PM Reply Like
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