OTCPK:PILBF - Post by User
Comment by
aggmanon Aug 12, 2014 3:55pm
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Post# 22833648
RE:RE:New thread: Catch all of last 4-5 posts
RE:RE:New thread: Catch all of last 4-5 postsPolaris's aggregate qulaity is indeed very high.
Normally in markets - what matters most is that it is approved byt the State DOT for state projects. Similarly that it approved by US Corps of Engineers.
Why?
For 2 related reasons:
1. Being State approved, means you can provide material to state jobs. It is considered the highest hurdle - because it goes into roads and bridges and so forth. It depends in each market - but normally - 40% of material is state approved and 60% is not.
2. In construction: there is greater "aggregate intensity" in civil, roads, bridges, airports. That is for every $1 spent in these projects 7 times as much aggregate is consumed (used) than in $1 of residential construction spend. Therefore being approved for state works - means you are approved for very high dollar jobs, and that have very high aggregate intensity - so absolutely this is vital for outsized success.
Morover, high spec material may be needed fo rlargers commercial jobs - suchs as office buildings and sports stadioums - and this has worked out well for Polrais in the San Jose Area (Apples office, and the new 49ers statdium).
Also Polaris has the lowest delivered cost to downtown SF.
There is tremendous value in PLS aggregate.
Look at the Port of Long Beach: There is $4.5BN of funding for work in the Port - and all of this work will be requiring approved US Engineer Corps and CalDot approved stone.
I am aware that these entities have sampled, tested the Polaris stone and that they rate it very highly. This is excellent news.
PLS will see aggregate for close to $20/ton in Long beach - hugely profitable.
hat you are seeing now in SF Bay is volumes comming back - and prices in cement and RMX - Polaris is in a good position to increase the price of aggregate in that market by at least $1/ton per year - for the next 1 to 4 years. There have been some holdbacks on getting better pricing now, maybe management have bit a bit cautious, but now is there moment to be assertively pushing the pricing needle, and really driving profitability in the Bay and in Port of Long Beach.
This company is very well positioned. I'm using this price pull-back to buy more stock, when LA comes on - this will get a leg up to $4. (in 9-12 months).