A couple of weeks ago I happened to be watching the Sundance Channel. How I got there I'll never know...I guess I was just channel surfing. Anyways, there was an interesting program showcasing "Green" products where a gentleman was talking about how traditional plastics are made with oil which takes 100 million years to occur in nature. We then use the plastics for about 45 minutes like in take out containers or plastic water bottles, and then they go back into the landfill where they remain for over 500 years because they don't biodegrade. That sounds like a complete waste of natural resources, not to mention the impact to landfills.
Cereplast is a company that makes compostable and hybrid plastics made of corn, potatoes, and tapioca. This company is in it's early development stages; however, earlier this month, the company reported revenue of $1.6 million, a 258% increase year over year. The company attributed this predominantly to the commercial launch of Cereplast Compostables. While these earnings are encouraging, the company is still in the red and continues to issue shares as a means to finance operations. Total outstanding shares for the third quarter were 258.2 compared to 200.4 million during 2006. I picked up 1,000 shares as a pure speculative play that may be worth watching considering the price of a barrel of oil is approaching the century mark...I probably should have just gone to Vegas. This one will be fun to watch and has made me more environmentally/ recycling conscious. Click here for the video clip.
