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.
JON C. OGG
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