.10 cents would be sweet.. TFN Reader’s Grapevine Pick: Check out Tirex Corp. (TXMC)
Today's Financial News - Posted August 4, 2009
In an economy that wants to recycle just about anything, investing a few bucks in an up-and-coming recycling company may not be a bad idea.
By Andrew Snyder, TodaysFinancialNews.com
Baltimore – (TFN): The grapevine continues to expand. Today, TFN reader Charles D. Sent us a note about Tirex Corporation (OTC PK:TXMC).
He says he is accumulating shares of the company under $0.02 expecting them to surge to at least a dime each within the next six months.
In an economy hell-bent on recycling anything and everything, the savvy investor may be onto something with this company. Do your due diligence and see if you agree.
Here’s a snippet of the research Charles sent us:
Tirex is a development stage company that engages in the design, development, and construction of a patented cryogenic tire recycling system for sale.
The company offers TCS System, which separates scrap tires into clean and saleable rubber crumb, steel wire, and fiber.
The Tirex Corporation markets its products primarily to recycling companies and governmental agencies to enable them to recycle tires. Tirex was founded in 1987 and is headquartered in Stratford, Connecticut.
Tirex’ objectives are:
– To market and distribute TCS Systems worldwide, through a network of national and international distributors and sales representatives.
– To produce and sell crumb rubber to various customers,
– To trade in crumb rubber produced by companies operating TCS Systems,
– To generate royalties from the sale of rights to use rubber crumb / thermoplastic elastomeric compounding formulas developed by Tirex either alone or in partnership with independent compounding specialists,
– To mould, extrude or otherwise fabricate and sell downstream products using rubber crumb as an input material.
THE INDUSTRY
The worldwide scrap tire problem is of massive proportions and traditional technologies to make tires disappear are not environmentally friendly and are not economically viable in the absence of government subsidies to support the disposal activities.
These subsidies are funded through taxation on tire consumption and such taxation is generally unpopular with consumers who are also electors. Many of these methods involve some form of combustion, and thus must compete with alternative energy sources.
Furthermore, combustion-based technologies frequently involve some measure of air pollution and the emission of greenhouse gasses, which emissions will come under increasing pressure to be reduced in the vast majority of the world’s developed economies.
Reduction of use of combustion-based technologies has been noticed in numerous countries, particularly in the European Union (EU). This reduction leaves more room for the non-combustion-based approaches to scrap tire disposal, such as is characterized by the TCS System.
The political and economic environments related to scrap tire disposal and the production of recycled raw materials is predictably variable; however, the basic trend line is also evident on both counts. The environmental issues are not going to go away by themselves and producers of downstream products require less expensive raw materials.
Politically, environmental protection will be a hot issue for years to come, both in terms of domestic politics and in terms of international politics. The cost of addressing these political imperatives will predictably be downloaded to the private sector as politicians will probably seek to avoid visible taxation to address the problems.
The economic imperative is particularly true in the rubber and plastics industries where costs are directly related to the cost of crude petroleum, a finite resource whose cost over time can only increase. Thus, the long-term business outlook for operators of cost effective tire recycling processes would appear to be favorable.
AI
