GLGIfeaturedimage

MicroCapClub Invitational: Greystone Logistics (GLGI)

Ian Cassel 2013 Invitational, Blog 14 Comments

A few months ago I wrote an article entitled: 8 Habits Of Highly Effective MicroCap CEO’s. Greystone Logistics (GLGI) CEO Warren Kruger is one of the few CEO’s I’ve met recently that meets all 8 criteria. Warren Kruger owns 30% of the company, takes an average salary, buys stock in the open market every quarter, and has invested over $10 million of his own money to turn the company around. I would also add that there has been little to no share dilution for several years. With the turnaround complete, the stage is set for a growth story to emerge. Greystone Logistics is the only public company focused on manufacturing and leasing plastic pallets, the fastest growing segment of the $9.5 billion pallet industry. The company is currently trading at 4x TTM EPS.  This is the first time the company has presented anywhere, so listen to CEO Warren Kruger as he tells the story.

 

DisclosureSean Marconi and Ian Cassel are LONG GLGI. This presentation was recorded on January 31st. All participants were not active in the stock on January 31st. The company DID NOT compensate MicroCapClub to present.

MicroCapClub Invitational Presentation Lineup and Dates:

January 3rd: Where Food Comes From (WFCF)   [VIEW PRESENTATION]
January 7th: OptimizeRx (OPRX)   [VIEW PRESENTATION]
January 10th: Abtech Holdings (ABHD)   [VIEW PRESENTATION]
January 14th: Parametric Sound (PAMT)   [VIEW PRESENTATION]
January 17th: NXT Energy (SFD.V)   [VIEW PRESENTATION]
January 21st: Noble Roman’s (NROM)   [VIEW PRESENTATION]
January 30th: Misonix (MSON)   [VIEW PRESENTATION]

February 4th: Charles & Colvard (CTHR)

February 7th: rVue Holdings (RVUE)

February 11th: BioSyent (RX.V)

February 13th: Vertex Energy (VTNR)

The MicroCapClub (mc2) is an exclusive microcap forum focused on microcap companies (sub $300m market cap). The MicroCapClub was created and founded by Ian Cassel as a way to share ideas and to learn from other seasoned like-minded microcap investors. Our goal at MicroCapClub.com is quality membership and quality stock ideas.  If you are an experienced micro cap investor, feel free to Apply today.



About the MicroCap Superstar Author

Ian Cassel

Facebook Twitter

Ian has been investing in microcaps for 15 years and has been a full time microcap investor since 2008. Ian looks to invest in great management teams running great businesses with a moat. He tries to invest in the best 5-6-7 companies he can find at all times. Ian founded MicroCapClub in 2011 to be a place for “real” and experienced investors in the microcap space to share ideas and learn from one another. When Ian isn’t researching stocks or administering MicroCapClub, you can find him reading, golfing, or shopping at Costco with his wife.

Comments 14

    1. Post
      Author
      1. Post
        Author
  1. John Galt

    Where did all their debt come from? Looks like they added significantly to it in 2011.

    I was a Food Manufacturer CEO/COO. Wood pallets are expensive when you factor in the repair, purchase of wood slats, worker time, potential injury, pests being brought in on them, removal of old ones etc. But plastic pallets were more expensive — several times the cost of wood ones. This was a barrier for our using them. Most food companies operate on low single digit margins. Maybe there’s a way to design them using a honeycomb structure that maintains strength but reduces the plastic use and the cost.

    The other problem was tracking pallets. We ended up simply giving them away. Pallet exchange can work, but we never got back as many as we gave out. How about an RFID chip that can be tracked on a satellite so you know where all your pallets are? They need something to make them stand apart and also jump start sales. If pallets are simply a cost of doing business as they were for us, it’s difficult to justify spending a lot on them. On the other hand, some customers were requiring plastic. This company should hook up with some buyers and be ready to sell to their customers when they require them to use plastic. Good Luck.

    1. Post
      Author
      Ian Cassel

      You should listen to the presentation, he goes over most of your comments in it.

      The CEO and another director loaned the company over $6 million to turn the company around + personally guaranteed $5 million bank loan, added a bit more in 2011 to expand capacity. Now they are paying it back down ($1.2m per year). CEO has over $10m invested in the company corrently. I would say management is aligned with shareholders.

      Plastic pallets are much more expensive then Wood. He goes over this in detail in the presentation, which is why for low cost/low margin products shipping via wood pallets still makes sense and will always have its place.

      Check out the multiple case studies on the companies website via Miller Coors Brewing and you can see how much money they are saving using plastic.

        1. Post
          Author
  2. Post
    Author
    1. Post
      Author
    1. Post
      Author

Leave a Reply

Your email address will not be published. Required fields are marked *