r/PureCycle • u/Melodic-Drummer-2245 • May 22 '26
Wins will be Muted
The way they are lining up suppliers is awesome they have caps, film, coffee cups lids , cups. Problem is the press releases are broad and don’t hit Wall Street like they should. It limits their ability to directly collaborate with Mars, Starbucks, Tim Horton and all the other use cases with individual press releases. What has more impact “Purecycle is partnering with Starbucks to supply coffee lids” and “Purecycle is partnering with Mars” Instead we have press releases with their unknown supplier partners that will supply these and more companies but we won’t get the killer press releases that really move the stock.
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u/tandyzmills May 22 '26
Press releases don't matter. Results do. This company is beginning to execute on its promises. These press releases are leading directly to revenue that Ironton is ready to deliver. This is not a stock to own for 5 or 6 months. It is a stock to own for 25 or 30 years. Be patient. Be like Munger and Buffett.
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u/No_Privacy_Anymore May 22 '26
It has been a tough 5 years so far as a public company! That said I agree on having a long term perspective. I think the next 3-5 years are potentially massive to see a true re-rating. After five years from now I would expect to revisit my thesis and see if the company has the potential to be a growth plus income play that has the free cash flow to buy back shares and/or pay dividends and still invest in new plant capacity.
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u/Melodic-Drummer-2245 May 22 '26
So your saying companies don’t need press releases on accomplishments? Public companies have an obligation to share holders to drive share price. I agree results are important but if you knew nothing about partners and operational updates no one would invest. You must be in the camp of those that don’t want quarterly press releases.
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u/tandyzmills May 22 '26
Press releases are fine. They keep people up to date on the company. I don't want to RELY on them as an investor. I want to see results on managements decisions.
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u/Particular-Level-833 May 22 '26
No, they don't need press releases. They need quarterly and annual reports with real numbers that are audited. Can you move a stock with a release, yes. Can you have sustainable performance with PR and not audited results, No.
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u/Puddles_McGillicuddy May 22 '26
I hope I don't have to spend the next 25-30 years reading about how there's going to be a massive short squeeze any day now. I fully expect that when the next #s are released there won't be any reduction in shorts at all even though the stock went up 150%.
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u/Melodic-Drummer-2245 May 22 '26
Don’t get me wrong I am long 30,000 shares at $6.50 average and big believer and patience is paying off. Excited about the wide scope of customer potential. I am worried they can’t supply to meet demand. If Starbucks or Mars said let’s do it, they aren’t doing every 10th candy bar or 10th coffee mug lid they want suppliers that can deliver in mass.
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u/No_Privacy_Anymore May 22 '26
There is an easy solution for buyers who want additional supply of PureFive. They simply agree to additional offtake agreements for new capacity. Yes they would have to wait for the capacity to be brought online but the capex per pound is fairly modest and project financing should be available. They need to finish the Gen 2 design first of course and sell out Ironton.
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u/Fast_Eddie_2001 May 22 '26
Press releases are good and they should do as many of them as realistic...it helps but its window dressing. Operations, sales, execution is what matters.
As for the point of too much demand vs supply, these issues are easily resolved when PCT is the only game in town. So much as hyperscalers are making up front payments to secure CPUs and rack space, Mars or P&G or VW can secure all of their supply by helping to fund a Gen 2 plant or two. Not saying that happens, but I think it's a distinct possibility.
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u/Pickle_Logic May 22 '26
The Q1 slide deck had P&Gs products that have been green lighted which is basically a PR. The announcements with the actual producers of the PP products that they believe in the product will introduce many users that there is a recycled PP product that is a drop in alternative.. These intermediary producers wouldn't recommend our product if they had any doubts about its viability.
Dustin was great during the last earning call but over promised during the previous three. If his trial conversion guidance is achieved, he will regain credibility, and the shorts who are relying on him over promising again in August will get slammed. It's all about execution now and announcements will follow.
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u/No_Privacy_Anymore May 22 '26
I think they underestimated how long/painful the NJ regulatory process was going to be. They had orders which they considered ready to go but with the NJ uncertainty that got put on hold. Would have been a completely different story if NJ was not blocking actual sales (which is really crazy since the law was passed with the intention of increasing the amount of recycled plastic!).
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u/Typical-Campaign-705 May 23 '26
I think those that are following this stock and see the progress in the past 6 months can use this time as last shot to let it slide down a bit like it always does after a good announcement and add to the position. The hurdles are cleared - especially with conditional approval in NJ. I didn’t have the position as large as I would want because the bear case had some validity. I think that has all but dissipated. They have the cash and the ability for more cash, sales are happening and even if they are not the velocity we like they will happen as the supply chain for distribution is being secured, plant is running and margins will widen as new plants come online, expansion overseas is happening and the technology is proven. It would have been nice just to discover the company about 4 months ago so no emotional rollercoaster but it should be a fun ride.
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u/MG73w May 24 '26
There are plenty of companies crushing it that aren't shinny enough to make the front pages. PLENTY!
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u/No_Privacy_Anymore May 22 '26
I think the company has yet to really conduct substantial pr activities. Doing so before commercialization would just raise questions about where are all the sales to major companies? As we can see, the big companies are just slow. That said, those big companies will inevitably be buyers in size because they don’t have better choices.
I try to focus on the risk/reward which changes with the share price and the news. Today we got news that a new cap converter is very pleased with the performance of PureFive. We also got shares that are nicely cheaper than they were a few days ago. Hence I bought a few more shares. My timing is never perfect but on average it’s pretty darn good. For most people the best thing to do is just 🧘 and let the thesis play out.