Waste to Gold Converter
Dear fellow investor,
the recent news from recycling powerhouse, Resource Exchange of America Corporation (OTCBB: RXAC) combined with industry trends and developments in scrap metal prices indicate a golden future for our Florida hard-hitters.
The other day, RXAC announced they had signed a letter of intent with the National Energy & Waste Commission for delivery of metals over the next 5 years. I'll bet several important body parts that this letter of intent benefits RXAC in every way possible: My guess is that it is not 'merely' 100 tons per day, but at least 100 tons per day. And that RXAC are going to buy it at a fixed price, but can sell it on to whomever they wish, and at whichever price-point the market can bear.
If so, the times are working for RXAC, for after the slump in steel prices in 2008-2009, the market is back with a vengeance. Several construction and building projects around the world have been on hold for the past years, and as the economies in the West are unfreezing and the economies in the East keeps sprinting, steel is getting in high demand. Already, the price for scrap metal is above $350, the median for the past ten years (years that included $800 in 2006-2007, and less than $200 in 2008 and 2009).
If we assume the National Energy & Waste Commission is going to provide RXAC with 100 tons every day of the week minus Sundays and the major holidays, that'll be 100 tons 300 days of the year. At a selling price of at least $350 (presently, the price for sorted scrap metal is $394 and trades at above $450 are not uncommon at the moment), that is a revenue stream worth $10,500,000 per year, for five years! Through this deal, RXAC can significantly expand their revenue – and you know what that will do to the stock price!
In the News story from October 12th, another thing attracts my attention as well:
"...The proposed agreement will provide a steady supply of materials from a particular power plant over the next five years...". Hey, what's that? The 100 tons will be coming from ONE power plant only – imagine if RXAC should be able to procure metals from 2, 3 or 4 power plants in the future? Each time they add metals from a new power plant, they double the daily amount of metal. So instead of $10.5 million, we're talking $21 – $42 million annually!
Those kinds of numbers will do magic to the stock price, and it will propel it with 50 – 100% each time a contract for delivery is signed. Knowing that RXAC never ever release anything except the hardest facts, my guess is the deal is virtually sealed already.
I am prepared to bank on the deal being finalized within the next two months, and then I am ready to reap the first 50% increases in the stock price.
So hurry, grab 4,000 shares and be ready to see scrap metal converted to gold – gold in YOUR pocket!
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