Ron: You must be carefull when you throw numbers around. Currently only 1 billion gallons of waste oil is collected in the US, a lot of this is already going to larger central collection sites. I do not know were you got your number of 5.5 billion, but I got mine from GRNO's web page.
GRNO will have its day in the market, since even if you assume that their niche market addresses only 50% of the current waste production, it will eventually come down to 100 galon per share, or $10/share in bottom line money (assuming .20 margins and 50% taxes). What you must remember, and we all remember is that they will have to work hadr and execute the plan carefully, namely, in each state, they will have to obtain certification, buy or create an effective collection system and raise the capital required to finance this growth. Therefore, that dream of $40-$50/share is not for tomorrow or next month, it will be reaped only by those that stay with this company for the next 5 to 10 years.
You do not need to pull out of thin air huge numbers that means nothing, if they execute what they forecast in their web page, the stock will be 10 and much more within a year. In the process, the MM will run it up and will run it down, and there is not much we can do about it, but anticipate their moves.
When you pull these tricks from your hat, you come through as a hyper, and this does not do us share holder any good, because stocks that are hyped up come down just as hard and fast as they went up.
Zeev |
