Tuesday, August 23, 2016 12:09:52 PM
Ecosynthetix (ECO.TO or US OTC ECSNF - Gray market) recently outlined its progress in seeking commercialization of its bio-adhesive for the wood panel market during its Q2 results and call.
(did I mention they have US $57M of cash!!! - they do - and a market cap of around US $70M)
They are making solid progress - much slower than anticipated but reflective of the challenges of getting large wood panel mills to stop production to trial new adhesives during the busy production season.
Despite these challenges they are advancing many different dialogues in what is a multi $B annual market for adhesives.
Why do I care about wood panel adhesives?
Because the State of California established regulations against the use of urea-formaldehyde-containing adhesives which are used in the bulk of wood panels.
Better yet - ECO just reported that the US EPA has issued similar regulations for the entire US - effective in one year - so now all panel producers need to find a path to meet this requirement - and ECO's DuraBind adhesive is the one product that meets the performance requirements AND does so at a cost at parity with the Urea-Formaldehyde formulation.
And major retailers - IKEA and Walmart that we know of - have put in place mandates to move to "No Added Formaldehyde (NAF) adhesives in the wood panels they sell that's great for ECO and the few other bio-adhesive makers - none of which can match ECO's pricing.
Listen to Ecosynthetix Q2 Call
Management is impressive and disciplined - focused on cost management and executing on this new product opportunity. They said their dialogues currently touch on 50 different mills that could each account for $500k - $3M in annual revenue - seems like at least $75M in revenue for a company that's currently doing under $15M in its paper coatings business which has been challenged by competing against petroleum-based coatings that are much cheaper with low priced oil (for now).
It's taken a long time - but the progress seems clear and commercial validation is approaching - from there the stock price should start to discount future growth and now longer sell for a modest premium to their cash position.
Who nows - they might even start to go out and talk about the stock - they haven't done so because they prefer (rightly so) to focus their efforts on the business - as the share price is not a factor in funding the DuraBind rollout out.
Very much worth a closer look today.
Recent ECO News
- Okeanis Eco Tankers Corp. – Ex Dividend Date • GlobeNewswire Inc. • 08/20/2024 06:00:00 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 08/09/2024 10:03:46 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 08/09/2024 10:01:40 AM
- Okeanis Eco Tankers Corp. – Key Information relating to Q2 2024 dividend • GlobeNewswire Inc. • 08/09/2024 04:05:00 AM
- Okeanis Eco Tankers Corp. – Unaudited Condensed Financial Statements for the Second Quarter and Six-Month Period of 2024 • GlobeNewswire Inc. • 08/09/2024 04:00:00 AM
- Okeanis Eco Tankers Corp. – Invitation to Q2 2024 Results Conference Call and Webcast • GlobeNewswire Inc. • 08/05/2024 08:10:00 PM
- Okeanis Eco Tankers Corp. – New Financing Update • GlobeNewswire Inc. • 06/20/2024 08:10:00 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 06/04/2024 10:00:20 AM
- Okeanis Eco Tankers Corp. – Ex dividend USD 1.10 per common share today • GlobeNewswire Inc. • 06/04/2024 04:00:00 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 05/31/2024 09:00:16 PM
- Okeanis Eco Tankers Corp. – 2024 Annual Meeting of Shareholders held • GlobeNewswire Inc. • 05/31/2024 08:05:00 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 05/21/2024 08:21:50 PM
- Okeanis Eco Tankers Corp. – New Financings Update • GlobeNewswire Inc. • 05/21/2024 08:10:00 PM
- US Stock Futures Rise Amid Softer Inflation, Oil Prices Dip • IH Market News • 05/16/2024 11:19:45 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 05/16/2024 10:02:58 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 05/16/2024 10:00:23 AM
- Okeanis Eco Tankers Corp. – Key Information relating to Q1 2024 dividend • GlobeNewswire Inc. • 05/16/2024 04:05:00 AM
- Okeanis Eco Tankers Corp. – Unaudited Condensed Financial Statements for the First Quarter and Three-Month Period of 2024 • GlobeNewswire Inc. • 05/16/2024 04:00:00 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 05/13/2024 08:23:44 PM
- Okeanis Eco Tankers Corp. – Invitation to Q1 2024 Results Conference Call and Webcast • GlobeNewswire Inc. • 05/13/2024 08:15:00 PM
- Okeanis Eco Tankers Corp. – Announcement of 2024 Annual Meeting of Shareholders • GlobeNewswire Inc. • 05/02/2024 08:30:00 PM
- Okeanis Eco Tankers Corp. – Announcement of Availability of 2023 Annual Report on Form 20-F • GlobeNewswire Inc. • 04/30/2024 10:17:50 AM
- Okeanis Eco Tankers Corp. – Key Information relating to 4Q23 capital distribution • GlobeNewswire Inc. • 02/29/2024 05:05:00 AM
- Okeanis Eco Tankers Corp. – Unaudited Condensed Financial Statements for the Fourth Quarter and Twelve Month Period of 2023 • GlobeNewswire Inc. • 02/29/2024 05:00:00 AM
- Okeanis Eco Tankers Corp. – Invitation to Q4 2023 Results Conference Call and Webcast • GlobeNewswire Inc. • 02/26/2024 09:05:00 PM
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