Must Read DD on VYGO
REUSING OIL IS GOOD FOR THE ENVIRONMENT, ECONOMY AND YOUR WALLET.
If the oil generated by all of the do-it-yourself oil changers in America were collected and re-refined, it would provide enough motor oil for over 50 million cars each year.
The US generates 1.4 billion gallons of recoverable used oil every year, five gallons for every man, woman and child. Less than 60% is recycled. Federal reports indicate that used motor oil accounts for more than 40 percent of the total oil pollution of our nation’s harbors and waterways. Used oil can contain such contaminates as lead, magnesium, copper, zinc, chromium, arsenic, chlorides, cadmium, and polychlorinated biphenyls. Oil poured down drains or in our landfills can work its way into our ground and surface waters and cause serious pollution problems. One gallon of used oil can contaminate a million gallons of drinking water, the equivalent of a year’s supply for 50 families.
Re-refining motor oil reduces the need to tap limited virgin crude resources and allows environmentally conscious motorists the opportunity to ‘close the loop’ by recycling used motor oil and purchase re-refined oil. Voyager operations turns used motor oil to a like-new condition by removing dirt and contaminants before blending sophisticated lubricating additives to protect engines. Laboratory tests on the finished lubricant cannot determine any difference between the highly re-refined base oil and virgin crude base oil.
Re-refined oil represents the responsible choice. Users enjoy the same quality and performance as virgin oil products while reducing America’s dependence on foreign oil and helping the environment by eliminating waste material and lessening the amount of nonrenewable resources taken from the environment. Conserve our valuable resources, use re-refined motor oil.
THE MARKET IS LARGE, PRIVATE, FRAGMENTED AND EXPOSED TO TAKEOVERS.
The US used oil market has a problem. It is scattered with many small, regional based operators whose owners are getting old. This has created attractive company valuations.
There are over 200 estimated lubricant suppliers in the US Market. 187 (94%) of these US lubricant suppliers are estimated to have over 39% of the US market or $4.4 billion in revenue. This equates to estimated average revenue of $24 million per privately held lubricant supplier. The remaining amount of the market is controlled by larger multi-national companies.
A variety of these companies have established specialized processing, blending for and selling to mid market manufacturing companies, as well as automotive retail outlets including oil change shops, automotive aftermarket chains, gas stations, department stores, and convenience stores. They are well run but running out of time to execute a systematic exist strategy for its owners.
Profits in the industry are made by raw material suppliers, refiners and distributors by placing fees on top of their costs at each step in the process including inbound transportation, labor, utilities, packaging, and outbound transportation. Vertical integration gives the opportunity to dramatically increase profit margins and streamline costs.
In addition, understanding market prices and keeping raw material acquisition costs low are the key components to maintaining gross margins.
This trend has created a vast opportunity for Voyager Petroleum – which is at the right place, at the right time and with the right aggressive strategy to succeed. An experienced management team, that understands the market drivers, has already started acquiring and consolidating.
MONEY HAS COME INTO VOYAGER WITH A MANDATE – CONSOLIDATE.
Voyager Petroleum (VYGO: OTC) is a publicly listed mid-market oil processing and distribution company involved in processing and distributing lubricant oil to the $11 billion US market. The Company provides privately labeled and wholesale recycled lubricant oil to the automotive and manufacturing markets.
Voyager's strategy is to build shareholder value through acquisitions and growth. VYGO acquires companies with established regional distribution channels and experienced management that would recognize increased revenue and/or significant cost savings from an injection of working capital, wider distribution, or vertical integration.
Voyager also intends to look for higher end products that offer premium pricing, reclaimed products that might offer discounted pricing power, or other products that fill an established niche in the market.
One of the Company’s core missions is to identify environmentally conscious businesses and methods of processing. The company has aggressively pursued this new strategy by recently signing a purchase agreement on a new reclamation facility, bringing on new experienced management, and signing a new sales agreement.
Voyager is buying companies with workable balance sheets including debt that can be restructured, or assets that can be sold or leveraged to create better stability and longer term profitability. Integrating supply, processing, packaging and distribution creates significant opportunities to grow the business and reduces costs.
The first step is always the hardest. Voyager has assembled a strong management team, raised funds and started acquisitions.
A LOW VALUATION MULTIPLE WITH HIGH GROWTH PROJECTION. IN ONE WORD - OPPORTUNITY.
Voyager is buying cheaply in the private sector and instantly positioning itself for higher valuation of these assets in the public sector.
The values being placed on small cap, environmentally conscious oil and gas companies on the bulletin board with revenue between $1m and $10m are estimated at approximately 12X to 16X revenue.
Within a year of entering this market, Voyager has already positioned itself, through a couple of acquisitions, for a projected $11 million in revenue. With additional acquisitions already planned, VYGO expects revenue to grow to $40 million within two more years.
A review of the market data presented in this document will show you that even at that revenue level, Voyager will still have considerable growth in front of it. This is an opportunity, if executed correctly, that can result in substantial profits and double digit growth for many years to come.
Voyager has already started performing. In the fourth quarter of 2006, management worked to establish multiple sources of low cost oil and hired a Vice President of Supply Operations with 24 years of experience sourcing and processing used oil. In late June, Voyager finalized a contract to acquire its first oil reclamation facility in Detroit, Michigan. The facility was formerly used and is outfitted for storing and recycling non-combusted oil including gear oil, machine oils, etc. from various consolidators of used petroleum. This facility addresses two key market drivers, supply and cost control.
Voyager is consolidating the indusry at the right time. As an investor, you can participate in its success and make a healthy profit – accumulate VYGO now.
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