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Non-Tech : The Woodshed

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From: TheSlowLane7/28/2006 10:38:47 AM
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It's been suggested to me that I should pay some attention to the world beyond NR stocks. I do, somewhat, though most of the discussion here seems to be pretty focused on that sector. At any rate, one company that I have mentioned previously is JER Envirotech. There are a couple of reasons why I think it is at a compelling entry point.

- they have addressed a small handful of issues that resulted in delays to getting manufacturing facilities running.

- warrants priced at .75 expired yesterday. I think this was another major factor weighing on the stock recently.

- revenues should ramp significantly in the 2nd half of the year and throughout 2007 and beyond.

- I think the business is somewhat "recession-proof" as there is an overwhelming need for the product regardless of the state of the economy.



The company makes WPC products, combining natural fibers (sawdust, rice husk, palm fibers, etc.) with polypropylene. The two forms are a pelletized form (that can be injection-molded into any shape) and panel board (4' x 8') for use as a plywood substitute.

The company has entered or is forming JV's with leading companies, primarily in Asia/India that will give them instant traction. Manufacturing facilities in the Philippines are ready to go into production. Malaysia is also preparing to go into production. A JV has been set up in India and plants will be built in 2007. Taiwan/China are next.

So...a little something different, but a really great story, imo...
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