Here is some IFOS info:
Summary of business:
IFS, located in Delray Beach, Florida, has developed a system, termed the Styro Solve System,
to appropriately and effectively recycle the waste materials of the $20 billion polystyrene
industry. The company is divided into two distinct operating units. The Central Division
encompasses the executive staff, product development, production, sales and marketing and
general operations. The Recycling Division is comprised of regional Recycling Facilities
that acquire the waste materials from customers, process the materials and sell the
recycled goods as raw materials to plastics manufacturers.
The Styro Solve System works like this:
Customers purchase a large metal bin (approximately half the size of a standard vending
machine) and place the bin in a cafeteria or other food service related area. In the case
of industrial applications, such as packaging plants, significantly larger machines may be
purchased.
As foam materials are deposited into the enclosed machine they are shredded and doused with
a harmless solution that "melts" the foam into a gel-like liquid that is deposited into
disposable bags in the base of the machine.
The bags of the gel-like liquid are periodically removed and placed in large storage
barrels to await shipping.
Once full, the barrels are picked-up by IFS and taken to the nearest Recycling Facility.
The gel-like solution is then processed whereby the original solution is extracted and
resold to customers and the condensed polystyrene byproducts are sold to plastics
manufacturers.
IFS customers are responsible for purchasing, renting or leasing the machine
($5,000 to $25,000) and purchase solution ($17 per gallon) only. The system eliminates
the traditional pick-up and waste management costs associated with disposing of polystyrene
products.
IFS generates revenues through four primary sources. Sales / Rental of machines and
equipment, sales of solution added to the machines (highest profit margin), sales of the
recycled polystyrene and licensing royalties from foreign entities.
What is Polystyrene anyhow?
Polystyrene is a lightweight plastic material derived from petroleum and natural gas
products. Composed entirely of hydrogen and carbon atoms, polystyrene is produced in two
varieties: an expanded polystyrene (EPS) version, also known as foam, and a non-expanded
(non-foam) version. Foam (sometimes incorrectly called Styrofoam, which is actually a
trademark for Dow Chemical’s insulation board) is commonly used as a packing material and
filler or molded into foam casings to secure delicate objects during shipping. Other
popular uses include cups, bowls, plates, trays, "clamshell" containers, egg cartons and
other food services related products.
The non-foam variety of polystyrene is commonly used for plastic utensils and cutlery,
yogurt and cottage cheese containers, clear "clamshell" containers used for salad bar
take-out and various durable goods manufacturing including appliances, toys, video
cassettes, tools and furniture. Since both the expanded and non-expanded versions of
polystyrene are comprised of the same chemical materials, they may be treated collectively
during recycling. The primary difference lies in the volume of space required by the foam
version prior to reduction.
(I always wondered if someone was going to recycle this stuff...)
Marketing and Strategy
The marketing strategy of the company is two fold: first, educate companies and consumers
on the importance of recycling foam products and second, position the firm as the only
credible means of doing so. Additionally, IFS will form strategic relationships with
manufacturers and distributors of mainstream polystyrene products to market the system as
a solution to any possible concerns with using foam products.
Competition in the field is limited to three companies, all of which offer products with
distinct disadvantages when compared to the Styro Solve System. Specific disadvantages
include: toxic solutions used for processing, significant costs associated with use,
inconvenience and poor corporate support.
Company Website: internationalfoamsolutions.com
Noteworthy news:
8 Sep: IFOS files 10QSB The link: biz.yahoo.com
5 Sep: Int'l Foam Solutions In Talks With DuPont & Japanese for 5 Yr. Contract Valued at
over $50 Million. The link: biz.yahoo.com
Aug 25: International Foam Solutions Receives Orders From Two New York School Districts
The Link: biz.yahoo.com
Aug 22: EPA Inspection Finds International Foam Solutions Proprietary Process Safe
The Link: biz.yahoo.com
Aug 9: International Foam Solutions Values Potential Trade Show Leads at $11 Million
The Link: internationalfoamsolutions.com
Shares:
22M O/S
Float 9M
Legal Proceedings: In the company's latest filing (9-7-2000), there were 4 items
mentioned; 3 of which have either been taken care of, being taken care of or dismissed.
The item which is still open is the $178K lawsuit by Florida First Capital Finance
Corporation. I am told by individuals close to the company that this will be handled as
well. The bottom line is that this is a relatively small suit and will have little or no
impact on IFOS's ability to move forward with its business. (MY OPINION)
A complete profile is at investor-gate.com. this is an excellent profile
worth reading. According to the disclaimer, IFOS did not pay investor-gate for this
either. I talked to Kevin Leigh at investor-gate... this is not a paid promo according to
him and he is the President of Investor-gate.
THIS IS NOT A BUY RECO ON IFOS BY ANY MEANS. DO YOUR OWN DD AND CALL THE COMPANY TO VERIFY THIS INFORMATION. DON'T BUY ANYTHING BASED ON MY OR ANYONE ELSE'S POST UNTIL YOU VERIFY THE INFO.
I am picking up a position in the stock today.
Tom |
