Contributor Since 2010
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 25-years Dr. Faessel’s ON THE MARKET reports have been widely distributed to a throughout the world to an extensive list of financial institutions, investment banking firms, brokers, foundations, mutual funds, hedge funds and private high net worth investors.
Dr. John L. Faessel
ON THE MARKET
Commentary and Insights
Faessel Publishing L.L.C.
Best Idea (OTC:GLYE) Inks Acquisition #5 in four months
GlyEco, Inc. (OTC:GLYE) $2.50 OTCBB
Update on - A Potential 10 Bagger & a 2012 Best Idea
Only when the moon is in the Seventh House and Jupiter aligns with Mars do profit propositions like this one come down the pipe. Read on!
(OTC:GLYE) just achieved added additional footing in their building business as their celebrated management today announced another binding agreement ― the deal makes it their fifth [5th] acquisition in about 4 months. ** The company is in the process of acquiring existing waste glycol processing facilities.
(OTC:GLYE) is now well underway with their roll-up venture aimed at the $25 billion market for waste glycol. If you're not hip to glycol - you should be as glycol is used to produce plastic containers, polyester fibers, anti-freeze, aircraft deicers and hundreds of other uses.
(OTC:GLYE) is piloted by storied waste industry professional John Lorenz* who was a key player in the fabulously successful roll-up of what became the monster Waste Management (WM), a company that grew in seven years from $2 million in revenues to $14 billion.
Blow your mind metrics and the reason to own the shares:
The market for glycol is immense with world demand at 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 glycol waste is thought to be approaching two billion gallons a year. The USA creates approximately 700 million gallons of hazardous waste glycol. With (OTC:GLYE)'s patent-pending technology most of this hazardous waste can be cleaned and reused again and again.
Dow Chemical and the Saudi Arabia giant Sabic make a major percentage of the total glycol supply. Asia uses more than twice as much glycol as North America does. Demand in China exceeds supply and currently tops 2.1 Billion gallons each year according to ICIS Chemical News. (One gallon of ethylene glycol is 9.29 lbs).
Key to the profit proposition is that;
1. Glycol waste can now be recycled to virgin status.
2. 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.
3. What makes this profit proposition scream-out is that after processing, the recycled glycol can be sold for at least as much as refinery produced glycol.
Enter (OTC:GLYE) with a patent-pending method to produce a recycled "virgin" glycol from a waste feedstock.
The patent pending (OTC: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™ equipment, 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 (OTC:GLYE) can sell Type 1 product for over $4.50 a gallon. Glycol sales prices are on the rise, while (OTC: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. Buying it low and selling it high brings an astronomic EBIT to this story. Profitability looks to be extraordinary and I envision that (OTC:GLYE) will be a big dividend payer out in time.
My analysis indicates that (OTC: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™.
· Year one EPS projected at $0.40 a share
· Projected revenue 2012 - $6 million
· Projected revenue 2013 - $48 million
· Projected revenue 2014 - $73 million
(OTC:GLYE) is now well underway with their acquisition strategy as evidenced by the above transactions. The company has now completed five  of their 12 acquisition targets with another asset purchase agreement. They see a total available market in the USA of $3.5 billion.
Management has said that it has already identified potential customers 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 this a picture of planets in alignment that happens only rarely. My prediction is for additional deals - soon - in both the USA and globally that will drive share price..
With a market cap of only $58 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 five  (OTC:GLYE) Acquisition Deals, the hyper links to the SEC 8-K docs and today's press releases:
5. May 23, 2012
EDGAR Online - On May 23, 2012, GlyEco, Inc., a Nevada corporation, entered into a preliminary agreement (the "Preliminary Agreement") with Enviro-Cool, a Georgia LLC.
4. April 16, 2012
EDGAR Online - On April 11, 2012, GlyEco, Inc., a Nevada corporation, entered into a preliminary agreement (the "Preliminary Agreement") with Evergreen Recycling Co., Inc., an Indiana corporation.
3. March 27, 2012
EDGAR Online - On March 22, 2012, GlyEco, Inc., a Nevada corporation, entered into a preliminary agreement (the "Preliminary Agreement") with MMT Technologies, Inc., a Florida corporation.
2. March 22, 2012
EDGAR Online - On March 16, 2012, GlyEco, Inc., a Nevada corporation, entered into a preliminary agreement (the "Preliminary Agreement") with Full Circle Manufacturing Group, Inc., a New Jersey corporation.
1. February 7, 2012
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.
Today's press release re the Enviro-Cool acquisition
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 (OTC: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.
(OTC: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.