Small Cap Strategist is published by Crystal Equity Research an independent research resource on small capitalization stocks. Follow along as we discuss the most recent trends in the small-cap sector, investigate interesting companies and pan a few not-so-promising stocks.
week RDX Technologies,
Inc. (RGDEF:OTCQX or RDX: TSXV)
announced an agreement to supply renewable diesel to the Tyson Farms’ Temperanceville
Facility in Virginia.The Energy
Division of RDX sells three grades of methyl ester fuels that can be used in
boilers and small generators.RDX did
not disclose the value or size of the Tyson Farms contract.However, the contract apparently is for one
year with a second year option.
operates renewable fuel plants in Missouri and California.Waste streams are aggregated at the two
plants by truck and processed using technology developed by RDX CEO Dennis
Danzik and his colleague Vincent Meli.The
company describes its process as ‘water mining’ wherein contaminants are separated
from the water with electrochemical and photochemical techniques.Waste polymers from the water have energy
value and are converted to methyl ester fuels.
fuel is not the only way RDX Technologies plans to generate revenue.The company also wants to franchise its
technology and sell water treatment equipment to aspiring fuel producers.Called the RDX BlueDot system, the company
recently announced a contract with Pontus Energy, LLC. to set up
sixteen franchise locations in Ohio, Michigan and Kentucky. The contract was
valued at $19.2 million
company recently signed the Environmental Engineering and Science Department of
Stanford University to use the RDX BlueDot system for further development of
water treatment solutions.RDX management
expects the Stanford deployment to support subsequent franchising efforts in
commercial markets where water treatment is an important or even more important
than renewable fuel sources.
the twelve months ending June 2014, RDX Technologies reported a loss of $10.0
million on sales of $36.7 million in sales.That seems like a dangerous loss, but cash used to support operations
was a significantly smaller amount $176,620.The company has approximately $4.9 million on its balance sheet, which
should support operations for a while longer if cash usage is kept under
wisdom of a distributed power generation solution appears to be catching on and
local communities are anxious to find smart ways to upgrade waste.Of course, water is in short supply everywhere.Technologies to clean up water are becoming
even more critical.
Technologies is still a developing company, but some of the technological risks
appear to have been eliminated with the first commercial deployments.There does appear to be a fair amount of
execution risk left, but the stock is still worth watching for all investors
interested in a stake in the waste-to-energy market.
Neither the author
of the Small
Cap Strategist web log, Crystal Equity
Research nor its affiliates have a beneficial interest in the companies