Trucks Moving in Both Directions Hauling Material at Eco Building Products Facilities

Trucks Moving in Both Directions Hauling Material at Eco Building Products Facilities

By: Tomas Ronolski - AllPennyStocks.com News

Tuesday, April 22, 2014

Much like any other new technology, environmentally friendly building products have gone through a slow growth curve as high costs were prohibitive initially. Much like solar products or alternative energy technologies, as costs start coming down, usages start increasing, allowing the world to enjoy the litany of benefits of green building material. Not only are they better for Mother Earth by recycling materials, preserving resources and often reducing emissions during production, the products are typically superior to conventional materials, a key to global acceptance. The industry analysts at Navigant Research recently showed that use of green building materials didn’t slow like traditional materials during the Great Recession. Their research forecasts that the industry will more than double in the next six years, growing from $116 billion in 2013 to $254 billion by 2020. We’ve previously published articles on the potential long-term upside to juniors in the industry, including an article last month on Axion International Holdings, Inc. (OTCQB:AXIH) as we believe that the market potential is there for small companies if management teams for these type of microcaps can avert pitfalls associated with expansion. Eco Building Products, Inc. (OTCQB:ECOB), a manufacturer of treated wood products using an eco-friendly chemistry and retailer of a full line of earth-friendly building products, certainly has headroom for growth of corporate valuation given its $9 million market cap and unique offerings. The company is headquartered in Vista, California with facilities in Salem, Oregon; Colton, California; Fair Lawn, New Jersey; and Augusta, Georgia.


Eco Building Products sells products from recycled paint products to caulk to vinyl fencing and custom millwork, but its specialty is its “Eco” branded products, including “Red Shield.” This product line utilizes patent pending technologies, ECOB WoodSurface Film™ and FRC™, to protect wood products, such as joists, beams, paneling, flooring and ceiling materials. The materials that are at the backbone of the products protect against mold, fungus, decay, termites and insects as well as being fire retardant.

The company’s “defensive” Eco line also includes brands such as Eco Armor™ paints, Eco Disaster Break™ coatings and Eco Trim™. Cumulatively, these “Eco” products are being used to construct “the most defensive home ever built in the Northeast,” with groundbreaking happening last month as part of the rebuild efforts from the Hurricane Sandy disaster.

Eco Building’s products are steadily making it to more and more shelves and racks and leading retailers, including Home Depot (NYSE:HD), as well as finding their way outside of the U.S., namely Mexico. The company has been producing coated lumber and shipping it to a manufacturer of finished goods in Mexico for several months and recently announced a partnership with Jacuzzi that will send more of their material south. Last month, Jacuzzi selected Eco Building Product materials for the fabrication of their skirt structures for their iconic hot tubs headed to Mexico.

On Tuesday, the company said that truckloads of shipments of their “Eco” products are rolling out just as the spring building season starts to hit its stride. Six truckloads and a rail car load of raw lumber has been received at the Colton facility for the Jacuzzi orders; three truckloads of lumber have been received at the Augusta facility for production for a multi-family project in the South; the Fair Lawn plant has taken receipt of six semi loads of plywood for orders to restock racks at a big box retailer and the Salem facility will soon be receiving a pre-fab order for a project in Hawaii.

"As the founder of Eco Building Products, it's exciting to see our brand lead the industry into the future of wood protection, just like Trus Joist did when engineered wood was taking hold of the Industry,” commented Steve Conboy, president and chief executive of Eco Building Products, in a statement today.

Make no mistakes about it; Eco Building Products is a growth play and their share structure of 1.8 billion shares outstanding (according to Quote Media) needs to be cleaned-up, either through a split or a massive repurchase plan. At the same time, the company now seems to have the infrastructure in place and growing distribution channels, resulting in more interest from the investment community, lending to shares climbing from near one-tenth of a penny at the start of 2014 to appreciate to as high as $0.009 in February before slipping back down to current levels of $0.004. Technically speaking, the price fluctuations are creating a wedge pattern, which is worth keeping an eye on as the fundamentals and technicals are taking on a more bullish look for the stock now than anytime in the recent past. Proper due diligence is, as always, encouraged.

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