Institutional Analyst: Special Situation Research
IA's Special Situation Report, Tuesday 5/10/2011.
Los Angeles, CA 53..67F Sunny.
Chicago, IL, 57..68F Sunny.
Port Jefferson, NY, 48..67F Sunny. 198
1. Vertex Energy (VTNR) $1.70, Reports Good Numbers. Leaps to Top of Watch List.
2. Conference call today.
To subscribe,send a email to:
To contact us send a email to: email@example.com
IA's Special Situation Report
Blog Version: http://iaspecialsituationresearch.ning.com/profiles/blogs/
Isn't it nice to have a small company, go up on small volume ? Really, isn't that the way it's supposed to be ? The company does better and better, the stock slowly goes up higher and higher (with occasional air pockets).
Shares are now up 327%, from where we added it to the Watch List about nine months ago, putting it at the top of our charts -- in terms of performance.
In the event you might think to yourself that you've "missed" this one (a natural response when assessing most 300% plus gainer) our thoughts are: "things are currently going great with what they have."
Here is an analogy. Let's say you own shares in a restaurant chain. They have three stores. The shares have gone from $1 to $3 on news that each store is profitable, growing and all around just doing great. They are doing well with "what they have." Which is three stores. If they have no intention to open any additional stores, it's pretty much game over.
But what if they do want to open more stores ? What if they want to open six more, twelve more or even twenty-four more ? Under that spotlight, as a shareholder you shouldn't be too concerned about recent price movement (to an extent), nor should you worry about the next quarters or even the next years growth --assuming they serve up a product which could have genuine national appeal.
In Vertex Energy's case, it's not more stores but more "facilities." Facilities to collect used oil. And facilities to process the collected oil. In keeping with the restaurant analogy, it could go from being a regional collector, processor and seller to national one.
In terms of national appeal, the last time we checked, Vertex collected approximately 29 million gallons of used motor oil in 2007 (most recent we could find), which accounted for approximately 3% of the entire recycled volume in the U.S.
The used motor oil collection market is highly fragmented with more than an estimated 700 used oil collectors nationwide. Based on a U.S. Department of Energy study dated July 2006, the estimated volume of used motor oil recycled each year is 945 million gallons, of which it is estimated that 83% is burned and 17% is re-refined. Vertex believes that there is a significant opportunity to increase the percentage of used motor oil that is re-refined rather than burned.
(If we were on retainer, we're sure we'd have more up to date numbers to share, but alas -- we are not.
Here's the numbers they released with working with "what they have," for the first quarter of 2011.
Revenue for the quarter increased 53% to $20.3 million compared to $13.3 million for the first quarter of 2010.
Gross profit increased 121% to $2.3 million compared with $1.0 million for the first quarter of 2010.
Gross margin per barrel handled increased by 84%, relative to the same quarter last year.
(It would probably be a good idea to ask about expanding and contracting margins, in today's conference call.)
As previously announced, Management of Vertex Energy will host a conference call today at 10:00 a.m. EDT. Those who wish to participate in the conference call may telephone 877-407-4019 from the U.S.; international callers may telephone 201-689-8337, approximately 15 minutes before the call. A digital replay will be available by telephone approximately two hours after the calls completion for two weeks, and may be accessed by dialing 877-660-6853 from the U.S. or 201-612-7415 for international callers, Acct # 380; Replay ID# 372420.
Press Release: http://markets.financialcontent.com/demo/?Page=MediaViewer&GUID=18409650&Ticker=VTNR
Disclaimer: This press release referenced and newsletter may contain forward-looking statements, including information about managements view of Vertexs future expectations, plans and prospects, within the safe harbor provisions under The Private Securities Litigation Reform Act of 1995 (the Act). In particular, when used in the preceding discussion, the words "believes," "expects," "intends," "plans," "anticipates," or "may," and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act, and are subject to the safe harbor created by the Act. Any statements made in this news release other than those of historical fact, about an action, event or development, are forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors, which may cause the results of Vertex, its divisions and concepts to be materially different than those expressed or implied in such statements. These risk factors and others are included from time to time in documents Vertex files with the Securities and Exchange Commission, including but not limited to, its Form 10-Ks, Form 10-Qs and Form 8-Ks. Other unknown or unpredictable factors also could have material adverse effects on Vertex�s future results. The forward-looking statements included in this press release are made only as of the date hereof. Vertex cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, Vertex undertakes no obligation to update these statements after the date of this release, except as required by law, and also takes no obligation to update or correct information prepared by third parties that are not paid for by Vertex. And since they are not a client, we'd be one of those "third" parties.
Going Concern Statements.
We would like to point out that the majority of companies listed on the
OTC Bulletin Board have factors which create an
uncertainty about the their ability to continue as a going concern. These
concerns are typically related to financing (or lack of), competitive
environments, lack of operating history and operating at loss levels which
is typical of most start-ups.
These statement can usually be found in their most recent 10Q filings and
typically you don't have to dig to far down past the financial tables. We
like to use http://www.pinksheets.com for quick and easy access to SEC
filings. We think it would be wise for most investors to assume that all
companies listed on the OTC Bulletin Board (and many on NASDAQ) have going
Disclaimer: Important Distinction #1. First and foremost the Watch List is
just that. A watch list. It is not a buy list. Meaning that there will be
no buys or sales issued by the Internet Stock Review. If this was a buy
list, you can rest assured that we would crank up our Public Relations arm
into high gear, full speed ahead and damn the torpedoes to make everyone
know just how brilliant we were when we issued the list. Interviews on
CNBC, articles in Barron's and accolades in the Wall Street Journal--the
only thing we love more than money is praise and fame--but it just isn't
going to happen. What the Internet Stock Review is...is a "news
aggregation service". With the advent of the Internet, everyone knows what
that term means. What it means to us is the following: We will follow the
progress of as many Internet related publicly traded stocks as humanly
possible (The large, the small and the minuscule) and advise you of when
they have reported news. As a subscriber to the Internet Stock Review,
this means you will be able to broadly follow the entire industry right
from a single e-mail. We will report who released news and point (with
hyper links) to where the news can be found. We try to use Yahoo! Finance
as extensively as possible so we don't send you all over cyberspace. We
love Yahoo, you will too. Any decisions as to buy or sell however, are
strictly up to you. Which leads to important distinction #2. How do we get
paid? The Internet Stock Review is owned by a Public Relations firm
(Institutional Analyst Inc.) that specializes in getting (or creating)
coverage for publicly traded companies. As such, is important to note that
anytime we say anything about a company, it is because the company is a
client of our parent company, or because we would like them to be a client
of our parent company. In a nutshell, you can throw out any thoughts of us
being even a little bit impartial. It just ain't gonna happen. We love
everyone. Final note is we that have over 20,000 subscribers so please
excuse our dust. Institutional Analyst Inc. is an independent research and
investor-relations consulting firm that publishes investment-research
reports such as The Internet Stock Review on independently selected
companies. While it is its intent to identify and research companies that
it believes might prove to be profitable investments, The Internet Stock
Review is not liable for any investment decisions by its readers. Neither
The Internet Stock Review nor any report published by Internet PR Group,
Inc represent a solicitation to buy or sell the securities discussed
within the report. It is strongly recommended that any purchase or sale
decisions be discussed with a financial adviser or broker prior to
completing any such purchase or sale decision. The information contained
herein is provided as an information service only and is based upon
sources deemed reliable, but not guaranteed by The Internet Stock Review.
Past performance of previously featured companies does not guarantee the
future success of any currently featured or mentioned company. The
information contained herein is subject to change without notice, and The
Internet Stock Review assumes no responsibility to update the information
in this or any report published. Use of this or any report published by
The Internet Stock Review may be subject to the applicable rules of
certain self-regulatory organizations and the securities mentioned herein,
which are traded Over The Counter, and may not be cleared for sale in
certain states. The Internet Stock Review and/or its employees, officers,
affiliates or members of their families may have long or short positions
in any of the securities discussed in this or other reports published
herein (and/or options or warrants relating thereto) and may purchase and
or sell these securities, options or warrants from time to time in the
open market or otherwise. The Internet Stock Review may derive
compensation through research services and subscriptions and/or
investor-relations consulting from the companies featured or mentioned in
its reports. Write or call The Internet Stock Review for disclosure
details as required by Rule 17b as it relates to individual issues.
Institutional Analyst Inc., In no event shall The
Internet Stock Review report be liable for direct, indirect, incidental or
consequential damages resulting from the use of this information. The
Internet Stock Review shall be indemnified and held harmless from any
actions, claims, proceedings or liabilities with respect to the
information herein. The Internet Stock Review is not a securities
broker-dealer, investment advisor or a securities exchange and is not
registered as such with the Securities and Exchange commission nor any
state securities regulation authority. Readers of this e-mail newsletter
should recognize that the Internet Stock Review is only providing a
delivery service to electronically transmit information to potential
investors. In this respect, the Internet Stock Review is no different than
the provider of any other delivery service such as the United States Post
Office or any other express delivery service. Accordingly, investors
should be aware that the Internet Stock Review has not evaluated nor
investigated any of the companies listed in this e-mail to determine their
merit or the risk of investment in any such company. The Internet does not
endorse any company listed herein and the Internet Stock Review does not
represent that the information contained in any offering documents states
all material facts or does not omit a material fact necessary to make the
statements therein not misleading. firstname.lastname@example.org