520 FACTUAL Reasons to SELL this DUMPSTER Stock!520 FACTUAL Reasons to SELL this DUMPSTER Stock!
511. Here are the Details: “APDN partners with synthetic fiber producer Palmetto to expand into the synthetic fiber market.”
512. “We believe Palmetto was included in a previously announced paid pilot with Techmer, a master batch supplier of synthetic fibers; in which Techmer supplied Palmetto with five million pounds of PET fiber tagged with SigNature T DNA used to manufacture polyester.”
513. “We view the partnership with Palmetto as analogous to the onboarding of manufacturers along the cotton supply chain, which positions the company to fill substantial orders associated with cotton sold by a number of retailers in a variety of applications.”
514. “Similarly, the partnership with Palmetto expands APDN's reach into synthetic fiber applications for the first time. Palmetto Synthetics’ fiber is used in apparel, automotive, and industrial applications.”
515. “APDN now requires an end-customer, similar to Costco (COST-$153.32-NR) for its cotton business, to commercialize the supply chain.”
516. “We expect modest revenue related to the five million pounds of SigNature T DNA will be recognized.”
517. “The synthetic fiber opportunity is twice the size of the cotton market.”
518. “While cotton constitutes 25% of the global textile market, synthetic textiles constitute approximately 60%.”
519. “Additionally, while the approximately five million ‘pounds of cotton supplied by the cotton pilot
took approximately 18 months to progress through the supply chain towards end users, we believe the synthetic material supplied. to Palmetto via Techmer reached its end application in synthetic fabrics-and
automotive materials in a matter of months.”
520. “We therefore expect that the potential top-line contribution from synthetics is even more substantial than from cotton and less lumpy.”