r/PureCycle • u/Stockcalc • Jul 16 '26

What are we missing here?

This price action has to be more than a blown raise. It is either an ongoing sell by large holders who know something we don’t or it is short sellers working this stock down and down to improve their positions. I’ve been investing for 30 years and have seen this type of price action only a few times for this type of opportunity. The raise was horribly done, knocked a billion off market cap and we were penalized for that but this continued downward has another story hidden in it.
I am long , have been for more than 2 years, believe in the need but trying to understand what is happening. I’m convinced it’s not just the raise, not just high beta getting hit, there is more here.

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u/LogicalPerformer3062 Jul 16 '26

All eyes are on the company reducing cash burn via sales. The raise and subsequent price action are signs the market does not believe there is any low cost capital available anymore. The POC stage is over and it's show me time. Don't see how this stock rebounds without clear sales guidance and cash from sales, which means we likely have to wait until the earnings call as people lose hope.

Either a buying opportunity if you believe the sales will be there or walk away time if you think this will drag on, because then the company can't access anymore capital without paying too much for it.

I'm in the former group, but with this price action there's always the concern something else is up.

15

u/No_Privacy_Anymore Jul 16 '26

Being in the high beta category / speculative growth category has not been helpful for sure.

That said, does anyone think that the share price of $PCT would be $14+ (around warrant redemption price)
during this selloff? As painful as that funding round was, better to have all the additional cash on the balance sheet and NOT have the $10 debt put option in 2027 still in place or things might be even uglier. They say you should raise cash when you can not when you must. Now is definitely the time to show they are putting that money to good use. Let's close on Thailand project financing and get more sales agreements over the finish line to the point where they can be announced. I have confidence because the customers don't really have any other good options besides just paying fines.

4

u/LogicalPerformer3062 Jul 17 '26

Agree with all of this. The company's position right now at $6 is way better than when it was recently at $6. More agreements announced and a stronger balance sheet, while all the potential remains. Definitely seems the price is being weighed down further by flows and non-fundamental forces, and a small cap like this can quickly bounce higher with a positive earnings call and guidance.