Wunderlich still sees upside potential for Heritage-Crystal Clean

"A secular change in the economics of used oil collection and sell thru to the RFO market should combine with better productivity ... to take the delivered cost to the re-refinery down sufficiently to support a better long-term FCF growth outlook," Wunderlich's Brian Butler says, reiterating a Buy rating on shares of Heritage-Crystal Clean (HCCI -2.1%).

Butler lifts his price target to $20-25, noting that "if and when margins at Environmental Services expand, [the company] is likely to use that upside to invest back into ES for growth but not at the expense of pressing through the 25% margin floor.”

Comments (1)
  • Medguy
    , contributor
    Comments (174) | Send Message
    Wunderlich and Wm Blair cover HCCI and presumably will be involved in recently announced potential $100 million HCCI offering. This new upgrade raises several questions in my mind:


    #1.This $100 million offering for a $340 million market capitalization company seems like a lot of potential dilution?


    #2. If Wunderlich is to be involved in this deal does their new report cause any conflict with SEC rules and policies of promoting stock you may do deal for so close to deal disclosure??


    #3. Seems like a lot of potential dilution for "corporate purposes" ? Maybe a major acquisition planned?


    #4. Why isn't this SEC disclosure shown on HCCI's website for all investors and shareholders to be made aware of this? IR team could do better.


    Heritage-Crystal Clean (HCCI) Files $100M Mixed Shelf


    Street Insider - 6:27 AM ET, 12/24/2013


    Heritage-Crystal Clean, Inc filed a registration with the U.S. SEC to sell, from time to time, up to $100 million of its Common Stock, Preferred Stock, Warrants, Depositary Shares, Stock Purchase Contracts, Stock Purchase Units, Rights, Units, or any combination thereof.
    26 Dec 2013, 01:48 PM Reply Like
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