ECOB And Eco Red Shield.TM I'm Seeing Green!
Seeking Alpha Analyst Since 2014
It may not be as fascinating as a bio company developing a cure for cancer or a gold mining company on the verge of striking a mass fortune, yet Eco Building Products, Inc. (OTCPK:ECOB), is emerging as a real game changer on how homes will be built in the US and across the globe.
Eco Red ShieldTM, ECOB's award-winning, patent-pending lumber coating technology, is an incredible breakthrough for the building industry. ERS is a sustainable, eco-friendly technology that controls the moisture in lumber while protecting it from water, mold, rot, termites and fire for the entire life of a home. Because of its low VOC emissions, it has been recognized and certified by GreenGuardTM for superior indoor air quality and approved for use around children and schools.
As the multi-billion dollar global building industry continues to grow ECOB is primed (pun intended), and ready to soar as it sets the standard for safe and defensive building worldwide.
With no competition, while providing real value for a little more than raw lumber- I am long on ECOB.
Its safe, eco-sustainable and green.
Wood is the only major building material that grows naturally right here in the United States.
Fact: The US and Canada, world leaders in forest certification
(845 million acres) representing more than half of the world's certified forests are both committed to forest sustainability.
Fact: The rate of deforestation in the U.S. and Canada has been virtually zero for many decades.
Fact: Using wood from responsibly managed forests can improve the environmental performance of buildings and reduce their carbon footprint.
Fact: Architects and builders are becoming increasingly aware of wood's environmental attributes, helping to create stronger markets for wood products which:
- stabilize the industry's ability to create jobs
- support rural economies
- provide an incentive for landowners to reforest
Real jobs for Americans and American Vets!
Like Levittown, New York, after World War II, our country has always been the world leader in homebuilding. Eco Red Shield TM, continues our domination by creating an improved long lasting, eco-friendly, product made here in the USA. The export market alone would generate billions in revenue and thousands of jobs, rejuvenating an industry that employed nearly 1 million jobs not too long ago. ECOB also continues to be active with their successful hire a Vet program. Helping the returning heroes continues to be the CEOs personal resolution.
Eco Red Sheild retards mold.
A serious life threatening global problem.
Mold has become much more common due to todays raw, unprotected lumber. Juvenile harvests are more porous and sponge-like which absorb moisture and produce mold. Mold is attributed to countless diseases and lawsuits effecting the lumber retailers as well as insurance companies in the billions.
Mold affects both the home and workplace, compromising the structural integrity of buildings and the health of those inside. Recent claim settlements have reached as high as $32 million. The Insurance Information Institute estimates that $3 billion in mold claims were paid out in 2002 (most recent year for which detailed statistics are available). Sadly, most states have passed laws allowing insurance companies to exclude mold coverage, so plaintiff lawyers now target vulnerable landlords, retailers like Home Depot and Lowes, homeowner associations and school districts instead.
Mold Stats:
- Farmers Insurance noted a 1,100% increase in mold related claims over the past decade. farmers.com
- The Mayo Clinic states, "93% of Chronic Sinus Infections have been attributed to mold as it can actually grow in our sinus cavities and lungs". Adding, "An estimated 37 million people in the United States suffer from chronic sinusitis". mayoclinic.com
- USA Weekend reports a 300% increase in Asthma over the past 20 years. usaweekend.com
- Medical experts warn against is stachybotrys, a toxic mold found in constantly wet areas. The Centers for Disease Control (CDC) explains, "mold spores drop on places where there is excessive moisture such as leaking roofs or plumbing, and can create environments for this dangerous and deadly mold".
- CNN Money reported over 30% of brand new homes built have mold of some form in them. The construction precautions taken to alleviate these issues is not as stringent with track built type homes where there is an assembly line type of project. A home can sit for weeks soaking up moisture before the next crew comes in for their part of the project.
- The American Bar Association claims a 200% increase for defect mold litigation in construction over the past 5 years abanet.org
- According to the EPA (Environmental Protection Agency), "100% of all types of mold have the potential to cause some health effects. This can be minor to severe and even death in some rare cases", also adding, "The national annual cost of asthma attributable to dampness and mold exposure in the home is $3.5 billion." epa.gov
International Mold Issues:
- In 2009, The World Health Organization reported: "Indoor air pollution, such as from dampness and mold, chemicals and other biological agents is a major cause of morbidity and mortality worldwide."
- "About 12% of new childhood asthma in Europe can be attributed to indoor mold exposure, which represents approximately 55,842 potentially avoidable DALYs (Disability-Adjusted Life Years)." And, "About 15% can be attributed to indoor dampness, which represents approximately 69,462 potentially avoidable DALYs."
- "Some 4.8 million (22%) of England's 22 million dwellings were identified as having a Category 1 HHSRS (Housing Health and Safety Rating System) hazard and thus by our definition deemed to be 'unhealthy housing'."
- "The total cost of dealing with HHSRS Category 1 hazards in the English housing stock is some £17.6 billion.(about $28.5 billion)"
Termites.
Eating up $5 Billion a year in the US alone.
Mold which causes wood rot, eventually leads to termites. A destructive cycle which is responsible for billions of dollars in home damages worldwide. And with the worlds changing climate wreaking havoc with our weather systems it is creating a healthy environment for mold and termites to grow and thrive. A termite colony can eat up to 15 pounds of wood in a single week! When you think about how many 2X4′s that might be, you will realize why they can quickly weaken a house or wall with wood supports. Termites are known as "silent destroyers" because of their ability to chew through wood undetected. Annually, termites cause an estimated $22 billion in structural damage around the world, half of which is within the United States (approximately 600,000 homes in the U.S. each year).
National groups estimate damage at $5 billion and treatments to control termites at exceeding $2 billion. In California alone, termites consumed enough lumber to build a 1 foot wide by 17 feet high starting from the Oregon border all the way to the Mexican border. Eco-red is poised to make the difference between simply replacing the interior drywall or replacing the entire structure.
Termite Stats:
- According to the bureau of labor statistics: Employment of pest control workers is expected to grow 26 percent from 2010 to 2020, faster than the average for all occupations.
- According to IBISWORLD The Pest Control industry has experienced an unexpected growth over the past five years. As the rebound in the housing market continues, demand for termite extermination services has also begun to show strong growth, propelling industry expansion.
- Due to termite damage, roughly $5B is spent for termite eradication and control on a yearly basis in the USA. This much money is enough to feed the marginalized sectors of Africa for almost a decade! However, because of the termite infestation problems, this money is spent on poisonous and toxic termite repellent products, termite control services and repair of properties being damaged by termites.
- According to the statistics released by the (USDA) US Department of Agriculture, about $1B to $2B is spent on home repairs alone.
You can yell Fire Retardant!
According to the Center for Disease Control and Prevention's website, deaths from fires are the third leading cause of fatal home injury. Eco Red ShieldTM is fire-retardant. The homes structure remains in tact even if a fire ignites inside the home. Its retardant qualities gives inhabitants plenty of time to leave. Firefighters can have peace of mind knowing the structure is sound because its core is made with ERS.
Most fire victims die from smoke or toxic gases, not from burns. ERS emits very little smoke that is non-toxic helping firefighters get to the fire with ease.
- According to the National Fire Protection Association, U.S. fire departments responded to an estimated 1,375,000 fires. These fires resulted in 2,855 civilian fire fatalities, 16,500 civilian fire injuries (accounting for 7.5 Billion each year) and an estimated $12.4 Billion in direct property loss. There was a civilian fire death every 3 hours and a fire injury every 32 minutes in 2012. NFPA.org
- Total cost of fire in the US, in 2010, is estimated at $328 billion, or about 2.2% of U.S. gross domestic product.
- Net costs of insurance coverage ($19.2 billion)
- Cost of career fire departments ($42.6 billion)
- New building costs for fire protection ($31.7 billion)
- Other economic costs ($47.5 billion)
- Monetary value of donated time from volunteer firefighters ($140.7 billion)
- Monetary equivalent for civilian and firefighter deaths and injuries due to fire ($31.9 billion), all are larger components than property loss.
- In recent years, we have seen numerous examples of fire as natural disaster in the out-of-control wild fires which caused such death and destruction in Australia in 2009, in Russia in 2010, and virtually every year through different southern and western states of the United States and Mediterranean Europe. Wildfire affecting urban and semi- urban areas is a phenomenon deserving much greater attention than it has been given. The WFSC, in cooperation with other interested organizations, is currently proposing that the United Nations Economic Commission for Europe (UNECE), representing more than 50 countries and working jointly through its Housing and Land Management and Timber Committees, sponsor a major conference on "Fire as Vulnerability on the Wild land-Urban Interface" in 2014.
Excerpts from: Western Forestry Leadership Coalition in 2010 report titled The true cost of fire in the Western United States
As Wildfires out west are causing millions of dollars in damages ECOB boasts Eco Fire BreakTM, a non-toxic spray on application, offering homeowners a fire protection barrier around their property, potentially saving their home and property from wildfires. Its so amazing that it can be applied directly to vegetation without causing any harmful effects. Its properties also act as a vegetation fertilizer. Another product Eco-D FenceTM, an affordable, fire resistant, eco-friendly fence constructed to stand up to wildfires, by protecting the outskirts of homes.
Finally, Eco Christmas Tree Protection, a non-toxic fire repellant that can save lives and millions of dollars annually in direct property damages.
Other products worth noting include:
• Eco Clear-ShieldTM, for interior and exterior lumber designed for staining.
• Eco Disaster BreakTM, a high performance easily applicable non-toxic acrylic that works against water penetration, fire ignition, mold, rot and termites on wood and rooftops.
• Eco ShelterTM, a customizable pre-engineered shelter, which can be built within 2 hours, and withstand hurricane force winds up to 150 MPH while also having all of Eco-Red Shields proprietary coated protection. Perfect for Hurricane prone areas that need the added protection and for rapid response needs!
• Eco Seismic WallsTM, seismic and high wind engineered panels that are designed for vertical and lateral loads perfect for earth quake prone areas.
These cutting edge products are getting noticed here in the US where wildfires, earthquakes and hurricanes are costing municipalities and insurance companies billions. ECOB products are needed overseas, in places like Australia, Africa, The Carribean, Phillipines and Indonesia where weather has had a great impact.
ECOB has recently built a plant near the New Jersey shore where Hurricane Sandy caused billions of dollars in disaster, working with the Home Depot (HD), they've forged an alliance to help rebuild the entire coast that hadn't seen disaster like this in decades. Had many of the homes been built with Eco Red ShieldTM the destruction would have been far less- since Eco Red ShieldTM was built to withstand the water penetration and force.
The most recent boardwalk fire in seaside heights could have been easily stopped had the boardwalk been protected by Eco Red ShieldTM. In fact the entire tri-state area could have avoided millions of dollars in destruction and insurance premiums by benefiting from ECOB's products.
There is a huge awareness coming out of these eye opening disasters by many groups, organizations and politicians as for the need to rewrite building codes and specifications. Legislators in some states are trying to add protection for consumers. California recently passed the Toxic Mold Protection Act, which forces insurers to offer mold coverage and mandates that homeowners disclose previous water or mold problems when selling a house. New York is considering similar legislation, while Maryland and New Jersey passed bills this year to study health risks associated with mold.
homechannelnews.com/article/eco-red-shield- lumber-creates-alternative-wildfire-prone-areas
Some Important Facts
- Home Depot (HD) has been stocking up stores with Eco Red ShieldTM and they are flying off the shelves. For pennies more, homeowners and contractors alike, can have peace of mind knowing that the wood dust and its protective coating are harmless. Meanwhile, Home Depot (HD) and other big box retailers can feel secure that they are selling a product that is mold resistant. (Major retailers are constantly in court defending mold litigation by consumers- much of which does not make the news) The lawsuits are in the millions.
- Insurance companies are becoming more and more aware of ECOB's proprietary products which help benefit the homeowners by lowering insurance premiums and avoiding costly lawsuits.
- Firefighters and first responders are huge proponents- endorsing ECOB products nationally given the fact that its considerable fire retardation allows these heroic people ample time to put fires out without worrying about dangerous conditions and collapses.
- Green advocates couldn't be happier as lumber is the most natural recyclable building product on earth. In fact, these days eco-friendly or green building materials are extensively used for the construction of houses in the US. According to statistics the market for green building material is expanding at a very fast pace. And what could be better than a natural sustainable product. With an eco friendly "green" treatment that protects it from its natural enemies.
- ECO has teamed up with Global Resource Solutions in order to teach defensive building practices. With the goal of educating and supporting families in there rebuild, helping them make sure it is cost effective by some of their own donations and time.
- On August 16, 2013, the National Association of Home Builders announced that Nationwide housing starts rose 5.9 percent in July, according to the newly released figures from HUD and the US census bureau. "Todays report is in line with our forecast for continued, gradual strengthening of housing starts and permit activity through the rest of the year" said NAHB Chief Economist David Crowe.
- Also builder confidence has risen by the fourth consecutive monthly gain bringing the National Association of Homebuilders/ Wells Fargo Housing market index (HMI) for August 2013 at its highest level of 59 points in nearly eight years.
- According to MarketLine, The global Home improvement industry is expected to grow at a yearly rate of 2.5% between 2010 and 2015. The market has a predicted 2015 worth of almost $678 Billion. In fact, in 2010, buildings materials led the overall market generating $389 billion in profit, or 65% of the overall market. Housing making a come back and Eco is poised to be a part of it with its patented safe, green products.
The Bottom Line
Building a company to service a world wide demand isn't easy. ECOB has begun to pay down its debt while building plants to cover strategic areas around the world. Eco is also beginning to expand its Eco Red Shield Affiliate Coating Program to established Lumber & Truss Companies around the globe. See site ecob.net/index.php?p=affiliates A smart and cost effective way to get the product to the market without having to create new plants to service the lumber. According to Steve Conboy, the company President and CEO, they are "complete with the companies overall strategy in building a solid foundation. The structure is solid and is prepared to service (and profit from) the (much needed) global needs."
Recent hiring of a new auditing firm with a reputation for being demanding and stringent is also a good sign as ECOB prepares itself for emerging growth and getting uplisted in the future.
Disclosure: I am long ECOB.
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