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Cereplast, Inc. Fact Sheet & Research Reports

|Includes: Cereplast, Inc. (CERPQ)

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Below is our fact sheet on Cereplast:

Cereplast, Inc.  (NASDAQ: CERP) or (the “Company”) designs and manufactures proprietary bio-based resins that create environmentally-friendly plastics which are used as substitutes for petroleum-based plastics.  Through three complementary product families, Cereplast Compostables® Resins, Cereplast Hybrid Resins® and Cereplast Algae Plastics®, the Company’s resins replace a significant percentage of petroleum-based additives with renewable resources such as starches made out of corn, wheat, tapioca and potatoes.  By year-end the Company plans to introduce a new product that of algae-based resins which represent a significant breakthrough in the greening of the plastics industry.  See April 27th Press Release here

Bioplastics possess a less volatile price structure versus petrochemical based plastics as feedstocks to manufacture renewable plastic are plentiful.  Conventional manufacturing equipment can also be used negating additional capital investments for manufacturers of end-products.  From a consumer pricing and demand perspective, brand owners are aware of the preference for products with minimal carbon footprints as they possess an opportunity for premium pricing.

More information can be found on Cereplast’s website at www.cereplast.com

Cereplast, Inc. Snapshot

Symbol                                                                  CERP

Recent Price (6/9/2010)                                       $5.15

52 Week Range                                            $2.78 - $7.00

Shares Outstanding (as of May 6, 2010)              10.72M

Market Capitalization                                          $55.2M

Enterprise Value                                                                 $55.1M

Avg. Daily Volume (3 Months)                           16k

                               

Financial Highlights

Revenue (Last Twelve Months)                       $2.74M

Earnings per Share (Last Twelve Months)    $ (0.75)

Total Current Assets                                         $2.42M

Total Current Liabilities                                     $1.47M


MANAGEMENT STRATEGY AND PHILOSOPHY

Cereplast’s strategy is multi-faceted and seeks to take market share from traditional petroleum-based plastic products through product attributes, predictable and competitive pricing, forced demand (legislation), and increased end-user demand.

·    Target High-Growth Segments with Commercial Products - In 2007 the compostable biodegradable bioplastic market was estimated to be greater than 540 million pounds. BCC Research estimates this market will grow to 1.2 billion pounds by 2012, a compound annual growth rate of 17%.

·    Expand Manufacturing Capabilities – Cereplast has completed a new 80 million pound bioplastic production facility in Seymour, Indiana that allows for expansion to a production level of 500 million pounds per annum. 

·    Strengthen Product Leadership through New Product Development – Through customer interaction and R&D improve the performance and applications of resins.

·    Pursue Strategic AlliancesBuild strategic partnerships with suppliers, distributors, converters and brand owners to develop and commercialize products.

OPERATING DIVISIONS

Cereplast Compostables® Resins

Renewable, ecologically-sound substitutes for petroleum-based plastics targeting primarily single-use disposables and packaging applications. Commercially introduced in November 2006.


 

Cereplast Hybrid Resins®

Replaces up to 50% of the petroleum content in conventional plastics with bio-based materials.  Hybrid Resins provide a viable alternative for brand owners and converters looking to partially replace petroleum-based resins in durable goods applications.  Introduced at the end of 2007 offering two commercial grades.

Cereplast Algae Plastics®

The first grade of resins for commercial use is expected by year-end.  Algae based resins represent a breakthrough in industrial technology and have the potential to replace 50% or more of the petroleum content used in traditional plastic resins.

 

PRIMARY CATALYSTS - Environmental

Growth in biodegradable plastics is driven by several environmental, political and energy policy factors such as:

·    Federal government announced policy designating bio-based plastics a preferred purchasing item http://www.biopreferred.gov/Default.aspx

·    Worldwide concern over landfill size and waste that takes over 400 years to decompose

·    Increasing cost and political nature surrounding the sourcing of petroleum into plastic – plastics consume 8% of annual oil production

·    Conventional manufacturing can be used allowing for no additional capital investments to create bioplastics

Disclaimer: The information disseminated by Catalyst Corner (“Catalyst”, “us” or “we”) is for information purposes only, and is neither a solicitation to buy nor an offer to sell securities. We do not undertake or purport to render any investment advice or recommendations for the buying and selling of securities. Companies that are profiled may have engaged our services including promotional services and the placement as the profiled company on our website. Catalyst Corner’s compensation for such services has been or will be made in cash and or issuance of securities of the profiled company, the amount or type of compensation is available upon request. The assembled information herein is based on information supplied by the company, press releases, SEC filings, or from other sources believed to be reliable as of the date of the report on the featured companies, but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. It is subject to change with out notice. Information in email alerts, Fact Sheets provided by us will contain “forward looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934.

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Disclosure: No positions