Plastic

Trex Plastic TWP

Plastic recycling is a green business but very competitive. The company Trex makes composite wood products like plastic (composite sounds better doesn't it?) decks and fence rails.

At first look, I though the company might be undervalued and ready for a move up. Home Depot is now carrying their products. However, a look at their income statement and balance sheet shows a debt burden and high expansion costs. They haven't reached a good economy of scale yet. The company also has a few patent lawsuits with Exxon (XOM makes more money than any company ). The company also experiences heavy market costs. The heavy sell off in June '05 is also suspect.


Bioplastics