Filed under: Products and services, Stocks to Buy, Housing
Every portfolio needs a few oddball microcaps just for sport, and Advanced Environmental Recycling Technologies Inc. (NASDAQ: AERT) fits the bill.
Advanced Environmental is “green.” It uses proprietary processes to recycle polyethytlene plastic and other types of scrap plastic to make construction materials including a composite plastic outdoor decking material. Previously the company had used recycled plastic in the construction of window sills, but is now moving away from that product.
Considered on its own, the company currently does not look that attractive. 4Q2007 sales plunged 54% and FY2007 sales were down by 16% to $82 million. FY 2007 net loss (unaudited) stands at $9.5 million. Nonetheless, the company has several things going for it.
For one thing, the downward plunge seems to be over and the company is on the rebound. 1Q2008 sales increased 30% to $29.9 million. More importantly, the company is constructing a state-of-the-art plastic recycling facility in Oklahoma that is attracting a lot of favorable attention in sustainable building and technology circles. It will not be that long before larger companies, seeking to market themselves as green, will begin looking for suitable companies to acquire. Advanced Environmental Recycling Technologies certainly has green credentials to offer.
The stock currently trades well under $1 per share. Just think how many shares you can buy with your $300 economic stimulus check.
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