PCTTU - PureCycle Technologies- Walking A Tightrope Amidst Execution Challenges
2024-05-15 16:59:19 ET
Summary
- Pure Cycle Technologies is a small-cap stock that is looking to commercialize recycling technology designed to convert waste polypropylene into ulra-pure resin.
- We now have a trust deficit with the management team, given the persistent delays with getting the Ironton facility to function smoothly without any roadblocks.
- Revenue estimates keep getting pegged back, and the company's liquidity position has worsened.
- PureCycle Technologies has gained nearly 40% since we last wrote about it, and the risk-reward on the charts does not look as attractive as it did back in November.
- Although investors with aggressive risk appetites may continue to hold the stock given that conditions for short-covering still remain bright.
Introduction
Towards the end of November 2023, we had crafted a piece on PureCycle Technologies, Inc. ( PCT ) ( PCTTU ), nudging investors to purchase this beaten-down small-cap stock that could potentially benefit from improved business prospects in 2024. We are now revising our rating to a HOLD....
PureCycle Technologies- Walking A Tightrope Amidst Execution Challenges