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Re: blind squirrel post# 192478

Friday, 07/27/2012 2:23:19 PM

Friday, July 27, 2012 2:23:19 PM

Post# of 312101
Your "problem" based on your numbers is an awesome "problem" to have.

It implies $125,000+ of fuel sales per day. So it's only a logistical problem, at worst, if they're producing that much fuel.

At that rate, you're looking at $3.75 million in fuel sales per month from free feedstock from a company that was last reported buring $0.5 million from operations last quarter. That type of cash flow can easily buy solutions to those "problems" :)

A few logistical problems with their solution:

(1) 25 to 39 trucks per day is 1 truck every 1/2 hour at worst. Zero problem.

(2) If they need more "shredder locations" then $3.75 million (in this example) makes that easy. The rent at the current one is around $10k/month is it? Not exactly breaking the bank.

(3) I don't believe all feedstock has to be shredded. Sometimes I believe whole bales can be fed and other unshredded items into the premelt. That's especially true for any NYSE: RKT locations.

(4) Some feedstock arrives pre-shredded (yet still free). One can probably guess why. Could be in some cases since the feedstock is shipped TO us for free, it's cheaper and easier for the supplier to shred if for us to save on transportation costs.

Raw

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