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Wow, dig this: Green Baron Focus Stock Pick for the Month of May Plasticon International, Inc. (PK: PLNI - .005 per share)
Current Total Shares Outstanding – Approx. 1.9 Billion Current Market Cap – Approx. $10 Million 52 Week High = .15 per share 52 Week Low = .0015 per share
Major Sales Channels Open for Patented Rebar Supports through Second Largest Seller of Rebar in the U.S.
“Foundation is Set, Now to Erect the Company, AND the Stock”
The Green Baron Report is on a mission to be the best in micro-cap stock picking. Not only do we want our members to make a ton of money from our stock picks, but invest in companies that truly have a long-term future. Our only two stock ideas ever profiled during market hours, ImageXpres (IMJX) and China Media 1 (CMDA) are two companies we still believe every member should own over the next year. These two stocks were profiled respectively as our March 2005 Focus Stock Pick and April 2005 Focus Stock Pick, and the results since our profile dates are truly epic. (Keep in mind that the general stock market performance over this period of time has been flat to down)
Now, The Green Baron Report is proud to announce our May Focus Stock Pick and 42nd fully profile stock to be added to our stock home page of previous profiled picks. The stock is Plasticon International Inc. (PK: PLNI) and we believe this issue is set to take off for many reasons. Pink sheets issues are absolutely put through the ringer when we conduct our due diligence. We do not like to initiate coverage of a Pink Sheet listed stock as a fully profiled pick unless it meets ALL the criteria we maintain. PLNI met our strict review, and we believe you will agree after reading our profile.
Green Baron Technical Review About a year ago, PLNI traded at much higher prices. In fact, PLNI hit .45 in April of 2004. However, as what happens to many Pink Sheet issues, an aggressive seller drove the stock to the floor. Over the past six months PLNI has been trading in a relatively tight trading range between .002 and .005 per share. There is now terrific support in these levels, although we do not anticipate the stock trading much below .005 any longer.
PLNI usually trades with a very tight spread of one or two hundreds of a cent between the bid and offer. Since there are at least 16 market makers currently involved, this stock sets itself up to not only be a great long-term hold, but also a wonderful trading stock. Volume recently has been huge. Last Thursday and Friday saw action with volume of about 50 million shares each day. Yesterday, Monday, May 9 was another huge day in PLNI as more investors are realizing the massive potential earnings from this company.
Please Note: The increase in price and volume late last week and the beginning of this week is likely due to CEO Jim Turek’s appearances on Money TV, a nationally syndicated television program featuring interviews with CEOs, insights into their operations, and outlooks for their futures (www.moneytv.net). The Green Baron Report did not purchase shares last week and, as usual, we have kept our pending coverage of Plasticon strictly confidential. On Money TV, the CEO indicated that they are “getting ready to make some announcements” and that they “received tremendous exposure (due to the first interview the week before).”
We believe much of the initial resistance has now been absorbed, and PLNI is ready to make a huge leap higher in price. Once PLNI breaks out above .0055 per share, there may be little resistance. Our fundamental analysis calls for valuation TODAY of between .03 and .05 per share. We expect sharp moves in PLNI, and the stock appears to be in the beginning stages of an uptrend. We expect fundamentally solid press releases to support what we believe is a Company with a very predictable future.
Green Baron Fundamental Review In a recent Federal court case, Plasticon patents were upheld and revalued by the court placing a current value of $16 million. Existing injection molds for each of the 50 SKU’s have values of $4-5 million. If you add the potential for Plasticon’s exclusive distribution and sales agreement with the second largest seller of rebar in the United States and 63 warehouse distribution points, the numbers get sort of crazy. At only a $20 million net asset valuation, PLNI should be trading at over .01 per share. If you add in mildly successful sales projections, PLNI ought to be trading at .03 minimum in our opinion. Toss in audited financials, new products, faster production capabilities, and we just might have a HOME RUN in the making.
The Green Baron Report has actually over stated the number of shares issued and outstanding on purpose. Even though Plasticon has assured us that no shares will be sold onto the market to raise money and a 504 offering has been cancelled, there remains the possibility of an acquisition or joint venture. The current ceiling on the authorized number of shares that can be issued is 2 billion, and the Company has no intention to surpass this number.
CEO Turek controls over 70% of the issued and outstanding shares leaving only about 300 to 400 million shares in the float. Mr. Turek has informed us that he has no intention of selling any of his stock in the foreseeable future. In our opinion, last week’s activity likely shook out most of the weak holders in this stock, and now PLNI is left with a much stronger shareholder base.
An audit of all Plasticon financials that was initiated about nine moths ago is nearing completion. The Green Baron Report expects fully audited numbers to add significant credibility to the Company and its intention to achieve a higher listing. We do not pick up coverage at this level of support unless we are assured that the Company intends to achieve fully reporting status in the near-term.
About Plasticon International, Inc. Plasticon International, Inc. of Lexington, KY designs, produces, and distributes high-quality concrete accessories, transportation signage, lumber, and office supplies which are all produced from recycled and recyclable plastics. The Company has been in the recycled plastics business for 10 years, and its line of patented, plastic concrete accessories has been approved or accepted in all 50 states and several foreign countries including Poland, Israel, Canada, Mexico, and Egypt. In addition, both its transportation signage and rebar support systems have received DOT approval in all 50 states.
Plasticon is the sole owner of an exclusive patented design of rebar support systems. Rebar supports are used to ensure the proper height placement of rebar horizontally and vertically in concrete. If the proper height is not achieved as specified by engineering, the concrete will not achieve its structural strength. Virtually all concrete construction requires rebar and rebar supports.
The rebar support market for US bridge reconstruction alone is $600 million annually, and the total U.S. market exceeds $1 billion. A partnership originally established with Georgia-Pacific’s building products distribution unit (now BlueLinx Corp. through an acquisition), provides a major market advantage for Plasticon as well as a competitive marketing position for BlueLinx. Plasticon has received tremendous response from projects using its rebar supports, and has plans to supply all 63 warehouse distribution points for BlueLinx in the United States.
Note: BlueLinx is a Fortune 500 company and distributes more than 10,000 building products in 14 categories from more than 1,600 supplier companies to customers nationwide. BlueLinx has a multi-year agreement to purchase structural panels, lumber and other building products manufactured by Georgia-Pacific and will be the exclusive distributor for select Georgia-Pacific-branded products.
A unique feature of all Plasticon products is that they are of the highest quality, yet do not require virgin raw material. Using recycled materials significantly reduces the cost of manufacturing, thus Plasticon is considered a “green company”. Plasticon’s use of environmental waste as raw material in the production of new and innovative products will continue to reduce waste since the new products are themselves, recyclable.
Plasticon’s patented products are recognized as the “Cadillac” in the industry and are without serious competition. PLNI products have been chosen for such showcase structures as Cleveland Stadium, The Rock-N-Roll Hall of Fame, Tampa Convention Center, Toronto Sky Dome, Chattanooga Aquarium, Disney Orlando, Wright Patterson Air Force Base, Tiffany Street Pier, and many others.
Plasticon rebar supports are constructed from strong, flexible, dielectric, non corrosive, recycled and engineered plastic materials. These concrete products do not rust, do not absorb water, and avoid the chloride ion attack. The slab and beam bolster products can be snapped together easily, saving labor and material expenses.
Green Baron Conclusion Other than CEO Turek’s recent short updates on Money TV, there has been very little talk of this publicly traded stock over the past six months. PLNI has not released an official press release since December 16, 2004. We believe Plasticon has been flying under the radar and is about to absolutely explode higher as it appears now ready to implement its strategy to fill a major market demand.
BlueLinx has 63 warehouse distribution points in the United States. Plasticon supplies each warehouse currently ordering with $300,000 of product that is expected to last through a year. Although not all warehouses are currently receiving product, some warehouses have required reorders. In fact, early indications suggest that some warehouses could see a need to order 4 to 6 times per year.
Here is where the numbers get scary. If all 63 warehouses require say on average two turns in inventory per year, we are looking at 63 X $300,000 X 2 which equals revenues of $37.8 million. Let us add that margins are healthy, the Company has tax loss carry forwards, there is revenue from other product category sales, and sales for rebar supports will occur outside the U.S. and to other builders. All this just equals – HUGE STOCK OPPORTUNITY RIGHT NOW!!!
If Plasticon can achieve sales of even $20 million over the next few years, The Green Baron Report sees earnings per share in one year about equal to where PLNI currently trades. We believe that Plasticon rebar supports could become the standard in building. The structural and cost advantages make these products almost a “no-brainer” when it comes to deciding between the alternatives. In addition, most government projects now require that part of its buildings are constructed with Post Consumer Waste Products, and Plasticon products are already approved in this category. We suggest members with speculative accounts to seriously consider adding Plasticon to your long-term portfolios, and enjoy what we believe will be another Green Baron wealth builder.
Company Contact Information: Jim Turek – President and CEO Office Phone: (859)221-2579 Bill Howe – Investor Relations (800)889-0915 williambhowe@yahoo.com .
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I would love to see this break .01 If it has all that volume don't you believe it should of gone higher then what it has today? But we shall see. Only way for a stock to increase in PPS is to recieve hits at the ASK price. If we see more sells then buys then it won't increase at all. This stock has the attention of alot of people but I am afraid of the sells that might come with a round of buys.
-------------------- I can tell you whats good and whats not based on level 2 structure...
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Here's "...Who's Who in the PLNI crew................
Jim Turek, President and CEO • Degrees in Public Relations and Advertising • 5 years with McDonald Douglas as a cost Analyst working for the Comptroller with responsibility for Convention Marketing, film and print media including DC-10, Phantom, P15 Eagle, Holography, Voice Synthesizing, latent finger prints, Aero Space as well as, at that time, the largest computer installation in the world with responsibility for Medical Diagram, grading and bus scheduling to name a few. • 10 years in the hospitality industry representing corporations and association marketing • Founded PLNI 17 years ago and serves as President and CEO.
James N. Turek II, Director of Marketing • Degree in Psychology • From age 10 to present has worked in every facet of the business with 5 years construction to the development of PLNI. • Responsibilities include market development, computer reporting and analysis as well as day to day responsibility with BlueLinx and PCI.
James Bonn • CPA and Attorney • 14 years working with PLNI in the area of contract administration, finance, accounting, audits and legal matters with a distinguished career in accounting and law practice over the last 40 years.
James Toohey • Consultant to PLNI • Former executive with the world's leading greeting card manufacturing company • Retired as head of their international division with the responsibility for acquiring and operating dozens of International companies. • Mr. Toohey assists with the development and implementation of PLNI distributor and marketing program. He brings international experience into the company.
Steve Murphy • Consultant to PLNI • 30 years of International, multi-industry manufacturing experience centered around injection molding and tool making. • Mr. Murphy has a proven track record in manufacturing environment covering all phases of costing, profit and loss. • Has a strong background in engineering including tool design procurement, customer liaison, and tool evaluation. • Mr. Murphy has a Bachelor of Science degree in mechanical engineering from Burnley College, England and attended Graduate School of Management at the University of Tennessee.
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