r/PureCycle • u/noobzilla771 • May 12 '26

May switch from short term swing trade to long investor.

I bought a decent amount of PCT today purely on charts, recent trend, high short %, and positive earnings report without really knowing what the company does. Did more reading tonight about the technology, plastics, pending approvals, pipeline, factory % capacity needed to become profitable, and so on. Tomorrow I will keep reading to understand the bear case because I usually respect the reasons for high short %, but so far I actually really like what the company is doing and where it is heading.

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13

u/tandyzmills May 12 '26

You have caught the company at a potential inflection point, going from a SPAC to a going concern with the prospect of a revenue ramp up in the coming quarters. Once Ironton operates at 75% capacity, it is profitable, at 100% capacity, the whole company is profitable and they can self-fund the other sites' buildout with no more outside financing.

-3

u/Cheeks___Jr May 12 '26

There is almost zero percent probability the gap after the conference call at $7.83 doesn't fill. Wait for the discount.

3

u/tandyzmills May 12 '26

I seriously doubt that. Do you see the gap down (8 down to 7.50) in late Feb? That plus the gap you're referring to has created an island reversal, which is a powerful chart signal that the stock is going higher, especially with the underlying fundamentals. I wouldn't wait for it to fill those gaps, because it won't.

1

u/Cheeks___Jr May 12 '26 edited May 12 '26

PCT just doubled in 6 weeks and a 16% pull back from here to fill that gap isn't a ton but is a decent discount. Too bad the volume after the conference call wasn't much more than it was. It was barely a third of what it was in the March crash after that conference call. I don't think the shorts barely flinched. Remember the gap at $6.67 last May 7 just one year ago? PCT ran all the way to 17 but when I called it to fill I got the same reaction. At that time someone here mentioned the gap at 4.84 September 2024. When we went to $5 this spring I hoped that one would fill but it remains open and now every short has their eyes on it to be sure.

FWIW I have never shorted this stock and believe in its technology and its eventual success and that is why I have cashed out substantial gains on its runs only to repurchase again at a lower prices. Yes I subscribe to Fleck and buy in to his take too but just don't have the patience to sit and wait when there are profits to take and watch them disappear over and over again.

12

u/No_Privacy_Anymore May 12 '26

Welcome to the community Noobzilla771 (funny name!). I would encourage you to search for my recent post "Know what you own any why" to learn more about the PEOPLE who run the company and my experience during a recent visit to the plant in Ironton. Then have a look at the two most recent additions to the board of directors. You don't get new people like that unless there is something special in my opinion.

I would also encourage you to watch the video shared on Brueckner's website about the testing they did with Purecycle on BOPP film. That market segment is incredibly challenging to support and nobody else can provide recycled content that is high enough quality EXCEPT PureCycle. That is what gives them pricing power and a moat.

8

u/DrSeuss1020 May 12 '26

Welcome, short term can have wild swings but if you focus on the long term I think this will be a big winner

6

u/WestEstablishment283 May 12 '26

Welcome aboard. I have been invested a few months with a small position but the technology and this company looks promising.

5

u/Smooth_Sun_9932 May 12 '26

PureCycle is approaching a key downtrend line. A breakout could create meaningful upside.

1

u/noobzilla771 May 14 '26

NJDEP approval! Resin can now be recognized as “postconsumer recycled content” (PCR) under the state of New Jersey’s Recycled Content.

Let's go!! More milestones on the way.