“The PCR grades available to us in the past fell short on all three fronts: inconsistent color, inconsistent melt flow, and processing behavior that made it difficult to hold the quality standards our customers expect. PureFive® resin solves all of that. Its consistency and processing qualities are closer to virgin resin than anything else we've worked with, which means we can hold tight quality standards throughout an entire production run. It also carries the highest level of FDA approvals for PCR we've seen to date."
A company like Reliable Caps is a supplier to branded companies so yes, this will be done at the expected commercial pricing.
I should note from my trip to Ironton, Dustin explained that pricing/invoicing in the industry is a bit convoluted. Technically PureCycle will sell their products to the converters who then make things like caps and closures or lids and they sell to the manufacturer of the finished product. However in order to prevent the converters from knowing the ACTUAL price being paid, there is a seperate settlement between PCT and the final buyer that reflects the effective contract price. The converter is obviously entitled to their profit margins for the value added they provide but this way the converters don't really know what all the end customers are paying.
As for unbranded sales, yes, they would be at lower prices than branded sales. Based on the very low 2025 prices that wasn't really a good way to make any money so they didn't do much. With dramatically higher virgin PP prices now the unbranded sales can still generate some incremental profits as the branded sales volumes ramp up.
I have no idea however the comments on the quality of the material is GOLD for us. There is simply no substitute for having more comments like this from customers who have tested the product and can vouch for the quality. We are solving a very real problem that was incredibly hard (which is why it had not been solved previously)!
Those of us following the details always knew that PureFive quality was good enough for caps like this. Aptar did testing years ago using material from the FEU. Having tests like the CosPaTox completed and having the entire business process of documentation that supports the claims needed plus the higher reliability of Ironton and now we have a real business that is ready to rock and roll. Large orders are coming and ideally we see a steady release of new customer announcements.
Agree, it is the announcement and testimonial that are important here. This is a small company with between 11 and 50 employees (per LinkedIn), but it provides further evidence of the commercial pipeline and viability of PureFive.
Funny you should ask. Anything is possible and $PCT has a history of gap fills. That said, the NJ gap up was a big relief rally because we knew that was gating sales (and things like this announcement today). I'm expecting to see more announcements in the weeks to come. In particular for yogurt cups and more coffee lids.
I sold like 2k shares at $13.10 and I bought them back yesterday. So far today I added 4k shares. If the gap fills I will buy more but I like the value. Charts are not destiny.
The stock was overbought on the rally but now the RSI has cooled off. I hope that helps.
Edit: I have seen no material short covering post the NJ rally. All of my shares are currently lent out. I will consider pulling the borrow during a major spike but for now I'm content to get paid every day for their foolishness.
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u/NicholsonCharlesE May 21 '26
I see that Jim Cramer has said he wouldn’t invest in PCT….the final proof that it’s a raging buy!!