Cereplast Inc. (OTC: CERP), a company engaged in the development and commercialization of bio-based resins, has seen a sharp rise in its shares in trading today. The rally has been sparked after the company announced the receipt of a $1.4 million purchase order for its Biopropylene® 101.
CERP’s Biopropylene 101 is part of the Cereplast Sustainables® family of resins. The product maintains most of the desirable conventional Polypropylene properties such as chemical resistance, mold shrinkage, mold flow, surface appearance, heat deflection temperature and hinge performance. However, when compared to Polypropylene, Biopropylene provides a lower carbon footprint. Given the increasing demand for environmentally friendly products, Biopropylene has a bright outlook.
Earlier today, Cereplast announced that it received a $1.4 million purchase order for its Biopropylene 101 from Dugar Eximark Private Limited, a Hyderabad, India-based company. The company will sell the material from its existing inventory. The order will be shipped from Europe over the next 10 months.
Commenting on the purchase order, Frederic Scheer, Chairman and CEO of Cereplast, said that entering into an agreement to liquidate existing inventory is a critical milestone for the company. Scheer further said that from a financial perspective, the transaction yields strong cash flow over the next 10 months due to the sale of existing product already manufactured. He added that in the company’s continued effort to build its footprint in India, it is encouraged by the continued partnership it has built with Dugar Eximark.
While the company is building its footprint in India, it is also hoping for positive developments in other parts of the world, especially in Europe. Back in April, the Italian government signed and published a decree inflicting sanctions on bags made from traditional plastics. However, in May, the U.K. government filed an opposition with the European Union (EU), claiming that Italy was breaching EU internal market rules. This has led to some delay.
CEO Scheer noted that the passing of the September 12, 2013 date without an update from the EU has left the EU market in a state of confusion in terms of what the status of the legislation is. Scheer noted that when dealing with a governing body, delays are to be expected. However, he remains confident that there will be resolution in the near-term.
For the first half of 2013, Cereplast reported net revenue of $1.7 million, significantly above the $305,000 reported for the same period in the previous year. In fact, the company’s first half revenue is higher than the revenue reported for the whole of 2012. In 2012, CERP’s total revenue was $911,000.
CERP shares have surged in trading today. At last check, the stock was trading 26.32% higher at $0.0168 on above average volume of 30.32 million.
CERP shares have broken through their 50-day moving average in trading today as a result of the rally. The stock’s MACD has also crossed above the signal line. Both of these are strong bullish signals, and suggest that the upward momentum in CERP shares could continue, going forward.
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CERP’s Biopropylene 101 is part of the Cereplast Sustainables® family of resins. The product maintains most of the desirable conventional Polypropylene properties such as chemical resistance, mold shrinkage, mold flow, surface appearance, heat deflection temperature and hinge performance. However, when compared to Polypropylene, Biopropylene provides a lower carbon footprint. Given the increasing demand for environmentally friendly products, Biopropylene has a bright outlook.
Earlier today, Cereplast announced that it received a $1.4 million purchase order for its Biopropylene 101 from Dugar Eximark Private Limited, a Hyderabad, India-based company. The company will sell the material from its existing inventory. The order will be shipped from Europe over the next 10 months.
Commenting on the purchase order, Frederic Scheer, Chairman and CEO of Cereplast, said that entering into an agreement to liquidate existing inventory is a critical milestone for the company. Scheer further said that from a financial perspective, the transaction yields strong cash flow over the next 10 months due to the sale of existing product already manufactured. He added that in the company’s continued effort to build its footprint in India, it is encouraged by the continued partnership it has built with Dugar Eximark.
While the company is building its footprint in India, it is also hoping for positive developments in other parts of the world, especially in Europe. Back in April, the Italian government signed and published a decree inflicting sanctions on bags made from traditional plastics. However, in May, the U.K. government filed an opposition with the European Union (EU), claiming that Italy was breaching EU internal market rules. This has led to some delay.
CEO Scheer noted that the passing of the September 12, 2013 date without an update from the EU has left the EU market in a state of confusion in terms of what the status of the legislation is. Scheer noted that when dealing with a governing body, delays are to be expected. However, he remains confident that there will be resolution in the near-term.
For the first half of 2013, Cereplast reported net revenue of $1.7 million, significantly above the $305,000 reported for the same period in the previous year. In fact, the company’s first half revenue is higher than the revenue reported for the whole of 2012. In 2012, CERP’s total revenue was $911,000.
CERP shares have surged in trading today. At last check, the stock was trading 26.32% higher at $0.0168 on above average volume of 30.32 million.
CERP shares have broken through their 50-day moving average in trading today as a result of the rally. The stock’s MACD has also crossed above the signal line. Both of these are strong bullish signals, and suggest that the upward momentum in CERP shares could continue, going forward.View to Original post :- Click here
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