Before
they were industry behemoths recognizable on a global scale, Apple, Microsoft,
and Caterpillar were start-ups. As Seeking Alpha contributor John Mylant notes
in a recent article, finding and investing in emerging companies in a
“transition phase” toward achieving similarly profound potential is an “art.”
Mylant
points to renewable energy company Methes Energies as one such target. To read
the full article visit http://seekingalpha.com/article/1905011.
Among
factors of interest is Methes’ recently commissioned 13MGY facility in Sombra,
Ontario, where the company plans to produce more biodiesel fuel and improve
efficiency and quality. Methes’ first step toward reaching these objectives, as
Mylant points out, was to refinance its debt at half the cost.
“In
July of this year, the company made a significant move in debt refinancing. In
June 2012, the company had a loan at an interest rate of 23%. The refinancing
of the $1.6 million CDN loan was done through a local facility in Ontario at
12%. This frees up thousands of dollars per month, allowing the company to
strategically invest in its growth strategy,” he writes.
In
October, Methes recorded record shipment of 485,000 gallons of biodiesel fuel
from its new production facility. If it maintains this pace the company will
produce as much biodiesel in the fourth quarter of 2013 as it did in the entire
year of 2012.
“These
numbers are a good start and in their exactly what I want to see when I am
looking for a company I believe is going to be able to grow in value for me,”
says Mylant.
The
article also discusses biofuel mandates, interest in Methes’ biodiesel
processors, and the company’s recent letter of intent to acquire OTC Energy
Technologies, Inc.
In
conclusion, Mylant recaps Methes financial position and writes, “I would expect
to see gross profits continue to increase substantially from now on with the
commissioning of the plant in Ontario. The company also believes that it will
double production without having to spend too much on investments.
“These
moves point out to me it’s a good time to invest in this company, as revenues
should be substantially higher over the next few years.”
For
more information, visit www.methes.com
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