DD - re: CRTZ
Investors' Alert Announces Investment Opinion On Creative Recycling
Technologies
May 18, 1999 05:02 PM
HOUSTON--(BUSINESS WIRE)--May 18, 1999--
Investors' Alert Initiates Strong Buy Recommendation
Strong Buy / Creative Recycling Technologies CRTZ
Creative Recycling Technologies has a patented process using microwave technology called Pyrolysis which cleanly breaks tires down into useable by-products.
According to a Creative Recycling Technologies press release dated June 9, 1998, the by-products will yield $4.55 per tire on a conservative basis, the most valuable by-product being the Carbon Black which has an approximate $15 billion annual market.
Thomas Loyd, editor of Investors' Alert, stated, "CRTZ is building 10 plants worldwide and has already been contacted by Saudi Arabia, India, Belgium and Finland.
The first plant will be built here in the U.S. in southern New Jersey, and has received a letter of cooperation from the state, and because the facility will be located in a designated State of New Jersey Enterprise Zone, the state and other authorities will finance up to 80%."
Also, according to an earlier Creative Recycling press release, CRTZ has also received a Letter of Intent from Brown and Lampe to raise up to $15,750,000.
Thomas Loyd believes CRTZ should have 1 plant up and running this year and 2 plants up and running by next year. Thomas Loyd also stated, "Each plant can recycle 10 million tires per year. CRTZ will receive its revenues from licensing fees, management fees and a share of the plant profits. These revenues to CRTZ will be 25% of the plants
total revenues."
Thomas Loyd calculated next year's projections for CRTZ as follows:
First full year of operation. With 2 plants running:
15 million tires recycled at $4.55/tire equals $68,250,000
Plants Revenue -- $68,250,000
CRTZ Revenue -- $17,062,500
Less Expenses -- ($5,400,000)
Net Income
Before Tax -- $11,662,500
After Tax -- $7,230,750
Per Share -- $0.86 after tax
Thomas Loyd believes at a conservative 20 P/E this stock could trade over $17 by next year. And CRTZ will be adding approximately 1 to 2 new plants per year for the next five years, so add approximately $1.00 after tax net for every year.
Shares Outstanding -- 8,377,000
Float (est.) -- 2,750,000
Investors' Alert is an independent research firm with paid subscribers. Investors' Alert is not affiliated in with Creative Recycling Technologies. Thomas Loyd may buy and sell securities recommended in this report as a regular course of business.
Subscriptions are $139.00/year for Investors' Alert newsletter service. This report is based on Investors' Alert independent analysis but relies on information supplied by sources believed to be reliable, The information contained in this report is not intended to be, and shall not constitute, an offer to sell nor solicitation of any offer to buy any security.
Copyright (c)
1999 Loyd Financial Consulting. All rights reserved. |
