Exponential Volume Alert from Ceraplast PR (CERP)

Posted in General 
August 26th, 2010

Ceraplast, Inc. (NASDAQ: CERP) is a tiny company in a very promising sector.  The company rang the opening bell at the NASDAQ this morning to help further promote its bio-based resin business, which in short means biodegradable plastics.  This field is still emerging despite a 15 year effort to get off the ground, and Ceraplast may be one of the ones that makes it in the field.

We are seeing what is already a 12X volume alert: at 11:10 AM EST the stock is up 11.2% at $3.78 versus a 52-week range of $2.78 to $7.00.  The volume is already over 750,000 shares versus a 3-month average of only about 63,000 shares.  The market cap is still a tiny $48.7 million.

Keep in mind that this is the second such day of a rally because yesterday came the announcement that RI M.E. Masterbatch would supply bioplastic resins for the European markets.  To show just how small this company is: it generated only $684,431 in gross sales for the three months ended June 30, 2010, and that was down 24% year over year.  The company had net unrestricted cash of $5,866,283 at June 30, 2010.

Lots of promise here.  Lots of risk as well.


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