RE:RE:Catching on
Globe says McWhirter keen on Cielo Waste Solutions
2021-02-03 09:08 ET - In the News
The Globe and Mail reports in its Wednesday, Feb. 3, edition that Canadian small-company stocks are back in the spotlight again, helped by tailwinds in multiple sectors at the same time. The Globe's Shirley Won writes that microcap stocks offer potential for big gains, but keep in mind that they come with higher risk. Selective Asset Management president Robert McWhirter recommends buying Cielo Waste Solutions (8.5 cents). He says Cielo is an attractive clean-energy play because it has rights to a technology to turn most garbage, including plastics, into renewable diesel fuel. Mr. McWhirter says the firm operates a refinery in Alberta that converts sawdust to biodiesel. This year, it aims to process 1,000 litres an hour of fuel and reduce its sulphur content. Canada requires diesel to include 2 per cent biofuel so there is a significant domestic market. Cielo also has memorandums of understanding to build five joint-venture facilities in Alberta and Nova Scotia and plans for 40 more North American facilities. It is expected to be cash flow break-even this year. A risk stems from hiccups in reducing enough sulphur to get premium pricing for biofuel. Mr. McWhirter bought Cielo stock for 6.3 cents a share.