TSXV:GLG.H - Post by User
Post by
bendergardenon Oct 03, 2009 8:18am
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Post# 16359485
There are few opportunities
There are few opportunitieslike this one... to get in on a new industry in its earliest stages. The only comparable I can think of in the last while was the solar industry about 10 years ago. I think you would have to be crazy not to get in on it.
GLG needs to move fast though, lightning fast, lock up as much scale and market share as possible, before the competitors come flooding in by the hordes, some of them backed with huge money. PureCircle already has a marketing advantage in that they sell to Pepsi and Coke, an easy familiarity for investors. Cargill is not meaningful to a lot of people, even though Cargill is huge and blue chip and a big plus for GLG.
GLG needs to get things moving in Paraguay, and get factories built in the areas where they signed exclusivity contracts as fast as possible in China. Profitability is not that big a concern right now, they need scale, scale, scale to make themselves as difficult to compete with as possible.