Hello Traders and Happy St. Paddy’s Day!
I’ve been working and researching this whole weekend for a possible breakout big-league pick with all the potential to hit the gains that I’ve been accustomed to hitting and that pick is DRAG!
DRAG is a reseller of recycled polymer and nylons.
This sub-penny alert looks to be the perfect play to kick off the week.
With a low float and a market value at $417,000 (According to www.otcmarkets.com), DRAG looks like a potential breakout pick with the possibility to reach substantial gains! Combine that with the fact that it is a sub penny play, DRAG appears to be on the path to stardom.
One of the most important parts of any trade opportunity is the share structure. I made it a point to find a thinly traded low float play that looked like it could move easily with a pinch of activity - and I think I did just that.
After seeing real gains of 50% on Friday, DRAG looks to be on an upward momentum swing, and I think it still has plenty of room to for potential upside.
Let’s look at some of the things DRAG does:
Like polyester, nylon fiber is made from petroleum. Although we’ve been substituting non-recycled polyester for recycled versions for 20 years, only in the last five have we begun swapping out non-recycled nylon for its recycled replacement.
Locked deep in polymer chemistry, nylon is more difficult to recycle than polyester. After years of research, development, and testing, scientists are finally finding some recycled nylon fibers that are suitable for apparel and can pass regulated, rigorous tests of manufacturability and product quality. That is where DRAG shows its colors!
Some of the recycled nylon they use comes from post-industrial waste fiber, yarn collected from a spinning factory, and waste from the weaving mills that can be processed into reusable nylon fiber.
That’s DRAG!!!! Another recycled nylon fiber that they are experimenting with is re-created from discarded industrial fishing nets.
In 1993 DRAG was the first outdoor clothing manufacturer to adopt fleece made from post consumer recycled (PCR) plastic soda bottles into their line. Twenty years later DRAG is still on the scene and still searching for a similar success story with recycled nylon. That’s where DRAG meets the challenge that lies ahead of us, and they’re committed to discovering the best methods to recycle nylon fiber; but it appears this evolution will take no time as long as DRAG is on the assignment.
In any case, incorporating as much recycled nylon as they can lessens our dependence on petroleum as a raw material source. DRAG has ideas and it curbs discards, thereby prolonging landfill life and reducing toxic emissions from incinerators. It helps promote new recycling streams for nylon products that are no longer usable. And it causes less air, water, and soil contamination compared to using non-recycled nylon.
About DRAG – Dragon Polymers, Inc.
(Current PPS - $.0033)
Dragon Polymers business model focuses on landfill mining of post-industrial polymers, specifically Nylon 6,6 and Polyethylene Terephthalate. With growing landfill sites becoming a worldwide problem, landfill reclamation projects provide simple solutions.
Dragon Polymers a unique opportunity to assist in rehabilitating our environment, while earning revenue for the company and enhancing shareholder value. The Company will continue to expand its business model to include other reclamation projects of post-industrial polymer fiber throughout North America.
Market Outlook
DRAG's business model focuses on landfill mining of post-industrial polymers, specifically Nylon 6,6 and Polyethylene Terephthalate. With growing landfill sites becoming a worldwide problem, landfill reclamation projects provide Dragon Polymers a unique opportunity to assist in rehabilitating our environment, while earning revenue for the company and enhancing shareholder value.
DRAG will continue to expand its business model to include other reclamation projects of post-industrial polymer fiber throughout North America.
The world is undergoing drastic changes: over population, over pollution, over consumption and climate changes. One of the visible effects of all the change is the massive accumulation of waste, both post-industrial and post consumption.
The amount of trash making it into landfills is expected to nearly double in the next two decades, from 1.6B tons per year in 2005 to 3B tons in 2030.
Nylon 6,6 & its associated resin materials are expected to have a U.S. demand of about 1.1 billion pounds during 2013, valued at about $2.4 BLN. The auto industry demand in 2013 is expected to be about 440 million pounds. In the electrical & electronics markets, the 2013 demand is expected to be about 205M pounds.
Virgin Nylon is an engineered resin that is very highly priced - in fact, the manufacturers of Virgin Nylon try to keep the price of their product as high as possible. It is now between $1.25 & $1.60 per pound. Nylon users actively seek recycled material with similar properties as Virgin Nylon, in order to take advantage of its substantially lower cost.
The market for Nylon 6,6 recycled material that DRAG now sells is $0.40 to $0.60 per pound. When that material is cleaned, transformed, & pelletized, it sells for $1.00 to $1.40 per pound.
Investor Highlights
Pure Green stock play: Recycling and waste management sector is in fast growth Petroleums polymers products are in worldwide shortage, which is increasing the price of recycled polymers. Many new applications for products have been found from recycled polymers. They are reused in many diverse manufacturing sectors such as the automotive industry, consumer goods and the food and beverages industry.
DRAG has a good network of compounders actively purchasing these types of products, mainly for Asian markets. Vast opportunities to get new landfills: the amount of trash making it into landfills is expected to nearly double in the next two decades.
DRAG is doing a partnership with a Montreal university to improve its extraction techniques of nylon deposits in landfills.
For the McAdoo landfill site: the estimated value of the commercial grade polymers once cleaned; reground and pelletized is US $120M. For the South Carolina landfill, the actual value of the estimated 20,000 metric tons of Nylon 6,6 is around US $12M. The Nylon 6,6 is not cleaned nor pelletized and is loaded directly from the landfill into the shipping containers.
This research hasn’t been done lightly. I’ve spent days trying to find a nice sub penny play for my readers, and I believe I have found the perfect one.
Alerts such as DRAG do not seem to come along that often, make sure you start your research. Trade smart and maybe this is the four-leaf clover you have all been looking for!
