Yes, similar to private equity investing. The product seems to be so disruptive, it has to work. Its worth buying a few shares, just to be part of the story.
Not a good look - "A former Loop employee told us that Loop’s scientists, under pressure from CEO Daniel Solomita, were tacitly encouraged to lie about the results of the company’s process internally. We have obtained internal documents and photographs to support their claims."
Exceptional deep dive on Loop Industries. What stands out most is the convergence of multiple validation signals - the Reed €20M deal with $4.75 conversion price, rising institutional ownership after years of dumping, and 14 insider buys with zero sales. The CEO holding steady at 42% ownership for 7 years demonstrates remarkable conviction. Your point about the technology advantages over mechanical recycling is crucial - the ability to handle low-value waste and produce infinitly recyclable virgin-grade PET creates a genuine competitive moat. The recent deal momentum (Ester JV, Reed licensing, multiple offtake agreements with Hyosung TNC, Shinkong, Taro Plast) suggests inflection point dynamics. However, your risk assessment is appropriately sobering - 2-3 years to commercialization, significant capital needs for the $88M India JV contribution, and unproven unit economics at scale. The $78M market cap seems severely disconnected from potential, but the pre-revenue nature justifies extreme caution. This reads like a classic asymmetric bet - capped downside at current valuations versus potentially transformative upside if execution delivers.
This is a great analysis. Well done
Thank you!
Yes, similar to private equity investing. The product seems to be so disruptive, it has to work. Its worth buying a few shares, just to be part of the story.
Very interesting read! Not sure if this is a company for me, it's still in such early stages.
But then again, that's where the potential is.
I struggle with the fact that they still have to invest so much in scaling, and it's quite unclear how profitable this all will be in the end.
Excellent, deep research though. Was a good read.
Interesting report :)
No worries about this? - https://hindenburgresearch.com/loop/
Not a good look - "A former Loop employee told us that Loop’s scientists, under pressure from CEO Daniel Solomita, were tacitly encouraged to lie about the results of the company’s process internally. We have obtained internal documents and photographs to support their claims."
Exceptional deep dive on Loop Industries. What stands out most is the convergence of multiple validation signals - the Reed €20M deal with $4.75 conversion price, rising institutional ownership after years of dumping, and 14 insider buys with zero sales. The CEO holding steady at 42% ownership for 7 years demonstrates remarkable conviction. Your point about the technology advantages over mechanical recycling is crucial - the ability to handle low-value waste and produce infinitly recyclable virgin-grade PET creates a genuine competitive moat. The recent deal momentum (Ester JV, Reed licensing, multiple offtake agreements with Hyosung TNC, Shinkong, Taro Plast) suggests inflection point dynamics. However, your risk assessment is appropriately sobering - 2-3 years to commercialization, significant capital needs for the $88M India JV contribution, and unproven unit economics at scale. The $78M market cap seems severely disconnected from potential, but the pre-revenue nature justifies extreme caution. This reads like a classic asymmetric bet - capped downside at current valuations versus potentially transformative upside if execution delivers.
I like the company business and it has a promising Technology. Since it yet to commercialize, I will wait on the sideline for a dip if it happens.
what kind of dip do u want?