MicroCapClub Invitational: Vertex Energy (VTNR)

Ian Cassel 2013 Invitational, Blog Leave a Comment

Vertex Energy (VTNR) is a vertically integrated hydrocarbon recovery company that has profitably grown revenues from $38m in 2009 to $110m in 2011. The company owns and operates a network of used motor oil collectors and aggregators, and then refines this feedstock using the company’s proprietary TCEP technology into higher value end products. The company has been expanding organically and by way of strategic acquisitions to broaden its footprint. Recovering, recycling and reusing hydrocarbons, plastics, and chemicals, has been a very hot area for investors the last couple of years. Several mergers and acquisitions in the space have made Vertex Energy a potential target. Heckmann (HEK) acquired Thermal Fluids in 2011, followed by Clean Harbor’s (CLH) acquisition of Safety-Kleen a few months ago. Heritage-Crystal Clean (HCCI), an industry comparable trades at over 20x 2013 EPS estimates. Vertex Energy has flown under the radar even while producing a more impressive growth curve then its larger peers. While the peer group trades at 20x 2013 analyst estimates, Vertex trades at 6x 2013 estimates, and that’s the opportunity. Listen to CEO Ben Cowart as he tells the story.

DisclosureAll participants are LONG VTNR. This presentation was recorded on February 13th. All participants were not active in the stock on February 13th. 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 31st: Greystone Logistics (GLGI)   [VIEW PRESENTATION]

February 4th: Charles & Colvard (CTHR)   [VIEW PRESENTATION]

February 7th: rVue (RVUE)   [VIEW PRESENTATION]

February 11th: BioSyent (RX.V)   [VIEW PRESENTATION]

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 Author

Ian Cassel

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Ian is a full-time microcap investor. He is the founder of MicroCapClub, CIO of Intelligent Fanatics Capital Management, and co-founder of IntelligentFanatics.com. Ian started investing as a teenager and learned from losing his money over and over again. Microcap companies are the smallest public companies that exist, representing 48% of all public companies in North America. Berkshire Hathaway, Wal-Mart, Amgen, Netflix, and many others started as small microcap companies. Ian’s belief is the key to outsized returns is finding great companies early because all great companies started as small companies.

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