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Scorpex, Inc. (SRPX) Poised to Dominate Integrated Waste Management in Baja Region

Today, Goldman Small Cap Research, the small/micro cap research firm led by former Piper Jaffray analyst and mutual fund manager Rob Goldman, dropped an 8-page company report on Scorpex, issuing a “Speculative Buy” rating and 6-month price target of $4.00.

Positioning itself to exploit a massive regional market in Mexico that represents billions annually, Scorpex has an offer in hand to provide waste disposal services for up to 800 tons of waste per day (estimated $1200/ton), a contract worth hundreds of millions a year. Recently contracting with International Environmental Technologies, Inc. (IET) to deploy a cutting-edge gasification/thermal oxidation plant on-site in the key Baja corridor, a target identified and refined by Scorpex now for a few years, the Company stands today approved to build ten waste storage structures on its Ensenada property.

With the first specially designed facility located near the existing property in what is a high output area where the other options include costly/logistically brutal ground transport into the US or barges off to Japan or Europe via either coast, Scorpex is poised to execute its environmentally-friendly waste disposal model. Some $35M in financing secured via IET (expected to close in coming weeks) and a low cost labor model shores up the fundamentals nicely, and with a projected 3Q12 target for fully operational status Scorpex will have the foothold necessary to export the model to other underserved regions in Mexico and Latin America.

The report describes a clear vector, with Scorpex forecast to grow revenue to $280M by 2013 on $0.41 EPS without factoring in additional deals and opportunities in the adjacent regions. The company is stepping in as a full-spectrum waste management solution provider that can be proud of its zero harmful emission, 100% recycling technology that is able to reduce waste volume by as much as 95% (stripping out 99.9% of combustible material). The ability to handle at high capacity everything from municipal waste, to medical waste and hazardous waste, simultaneously without presorting, is a huge advantage even if there were a salient competitor in the region.

Baja and the Ensenada area is a huge waste bottleneck crying out for precisely this solution; the market is ready and the solution is in place for delivery near-term. The demand for comprehensive waste management in the region, especially with the dramatic uptick in local production and commercial activity related to the NAFTA treaty, has created the ideal environment for Scorpex.

For more information, or to stay up to date on the latest news and information regarding Scorpex, Inc., please visit the Company’s website at: Scorpex.com

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