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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
  • "Best Idea" And A Potential 10 Bagger Inks Acquisition #6 In Just 4 Months 0 comments
    May 31, 2012 1:39 PM | about stocks: GLYE

    Dr. John L. Faessel

    ON THE MARKET

    Commentary and Insights

    Faessel Publishing L.L.C.

    Just Announced!

    "Best Idea for 2012" (OTCPK:GLYE) Inks Acquisition #6 in just four months*

    GlyEco, Inc. (OTCPK:GLYE) $2.40 OTCBB

    Early today (OTCPK:GLYE) announced that they "acquired" assets from another company in their roll-up strategy to consolidate assets of profitable companies that produce waste glycol as a waste byproduct in their business; it's their sixth acquisition in just four months.

    This venture is aimed at the $25 billion market for hazardous waste glycol that is reclaimed in the automotive industry from anti-freeze, plastic bottle and polyester fiber manufacturing, aircraft deicing, heating and air conditioning and medical sterilization sources.

    Let's emphasize that (OTCPK:GLYE) is piloted by "roll-up" virtuoso and specialist John Lorenz* who was a key player in the fabulously successful roll-up of what became the enormous Waste Management (NYSE:WM), a company that grew in seven years from $2 million in revenues to $14 billion.

    (OTCPK:GLYE) is one of my "Best Ideas for 2012" and I believe that this is a profit proposition that seldom come down the pipe. I see a potential 10 bagger here as Lorenz plays out his acquisition strategy. Obviously, these six deals in only four-months indicate an immense ability to execute and add to the compelling nature of the story.

    The market for glycol is enormous with world demand at near 6 billion gallons (26 billion pounds) per-year and it's expected to grow by 350 million gallons each year for the next decade.

    "Supply" i.e. the amount of global waste glycol feedstock is immense. The USA creates approximately 700 million gallons of hazardous waste glycol. Staggeringly, it appears that the USA and Europe have the only recyclers in the market leading me to believe that the huge amount of "other" hazardous waste glycol is being dumped. With (OTCPK:GLYE)'s patent-pending technology most of this hazardous waste can be cleaned and reused again and again.

    The patent pending (OTCPK:GLYE) Recycling process is the only technology that can process and clean all five types of hazardous waste glycols to meet or exceed ASTM standards. After installation of GlyEco Technology™, New Jersey will produce the highly sought after Type 1 (ASTM E1177 Spec) recycled material - indistinguishable from newly produced glycol. Key here is that right now (OTCPK:GLYE) can sell Type 1 product for over $4.50 a gallon. Glycol sales prices are on the rise, while (OTCPK:GLYE) processing costs stay relatively constant.

    The average sales price of ethylene glycol in 2011 was approximately $5.69 per gallon so you can grasp the value / profit potential.

    What makes this deal scream-out is that after processing, the recycled and now "virgin" glycol can be sold for at least as much as refinery produced glycol. Also central to the proposition is that the waste glycol is acquired at an extremely low price and in some cases, as in Europe, 'you' can be paid to take it away.

    Another key point is that (OTCPK:GLYE) provides a way to eliminates fees associated with disposal of waste glycol in landfills by customers who produce the waste byproduct.

    Buying it low and selling it high brings an astronomic EBIT to this story. Profitability looks to be extraordinary and I envision that (OTCPK:GLYE) will be a big dividend payer out in time.

    My analysis indicates that (OTCPK:GLYE) will reach the break-even point at about 1 million gallons. The company plans to increase processing capability in their New Jersey plant to 10 million gallons per year during the installation of its patent-pending GlyEco Technology™.

    Management has said that it has already identified potential targets and developmental partners in Europe, Asia, India, Mexico, South America, and Australia. Management experience, breakthrough technology, market size where intrinsic demand and built-in supply is of staggering proportions, plus high estimates of EBIT make (OTCPK:GLYE) a outstanding investment in my opinion. My prediction is that additional deals will keep coming - soon - in both the USA and globally that will drive share price. They see a total available market of $3.5 billion.

    Projections from (OTCPK:GLYE)'s recently released Snapshot:

    · Year one EPS projected at $.40 a share

    · Projected revenue 2012 - $6 million

    · Projected revenue 2013 - $48 million

    · Projected revenue 2014 - $73 million

    With a market cap of only $52 million I can envision it escalating to over $500 million in relatively short order as Waste Management (WM) did in its early days if management keeps up the same growth pace. (WM) now has a market cap of over $15 billion. Hence my, "Potential 10 Bagger" target. Opportunity knocks for ground floor participation!

    * The six [6] (OTCPK:GLYE) Acquisition Deals, the hyper links to the SEC 8-K docs and today's press releases:

    6. May 31, 2012

    GLYECO, INC. Files SEC form 8-K, Other Events

    EDGAR Online - On May 31, 2012, GlyEco, Inc., a Nevada corporation, entered into a preliminary agreement with Renew Resources, LLC. of Rock Hill, SC.

    5. May 23, 2012

    GLYECO, INC. Files SEC form 8-K, Other Events

    EDGAR Online - On May 23, 2012, GlyEco, Inc., a Nevada corporation, entered into a preliminary agreement with Enviro-Cool, a Georgia LLC.

    4. April 16, 2012

    GLYECO, INC. Files SEC form 8-K, Other Events

    EDGAR Online - On April 11, 2012, GlyEco, Inc., a Nevada corporation, entered into a preliminary agreement with Evergreen Recycling Co., Inc., an Indiana corporation.

    3. March 27, 2012

    GLYECO, INC. Files SEC form 8-K, Other Events

    EDGAR Online - On March 22, 2012, GlyEco, Inc., a Nevada corporation, entered into a preliminary agreement with MMT Technologies, Inc., a Florida corporation.

    2. March 22, 2012

    GLYECO, INC. Files SEC form 8-K, Other Events

    EDGAR Online - On March 16, 2012, GlyEco, Inc., a Nevada corporation, entered into a preliminary agreement with Full Circle Manufacturing Group, Inc., a New Jersey corporation.

    1. February 7, 2012

    GlyEco Announces Acquisition of Glycol Recycler Recycool

    Marketwire - On Tuesday 2/7/2012, GlyEco, Inc., a Nevada corporation, announced it has signed an asset purchase agreement to acquire certain assets of Recycool, Inc.

    See today's press release re the Renew Resources LLC. acquisition:

    http://www.nasdaq.com/article/glyeco-completes-acquisition-agreement-with-renew-resources-llc-20120531-00468

    Hyperlinks to the March 28, 2012 press release that includes access to their slide presentation and company snapshot under the Exhibit #'s: 99.1 and 99.2.

    http://yahoo.brand.edgar-online.com/DisplayFiling.aspx?dcn=0001185185-12-000530

    Approximately 35% of all ethylene glycol produced is used to make PET solid-state resins, 26% is used in antifreeze, 24% is used to make polyester fibers, 4% is used to make polyester film, 3% is used in PET chip resin exports, and 8% is used in surface coatings, polyester and alkyd resins, chemical intermediates, and other miscellaneous industrial applications.

    ** 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. (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) has cash of $453,405 as of 3-31-2012 per 10-Q.

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

    For more information, visit the (OTCPK:GLYE) website: http://www.grtus.com/glycols.html

    Stocks: GLYE
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