Posted by Admin on September 28, 2010 under Penny Stock Alerts Blog | 
Hello again. I’ve got an extremely unique green pick for today. Hot penny stock picks like yesterday’s did well, and so did a lot of our penny stock picks this month. I want to see more of the same from this new one…
My new alert is RXAC – Resource Exchange of America Corporation.
Here is what they do:
Resource Exchange of America Corporation is a Florida-based recycling corporation that will combine asset recovery with processing and brokering. By integrating all stages of the value chain in one company, Resource Exchange of America Corporation will become a recycling powerhouse. Our company specializes in export and global distribution of ferrous and nonferrous scrap. We can serve clients small and big, domestic and abroad.
As the recycling business is heavily fragmented, there are several types of companies in the market. Some companies work with asset recovery, others with sorting, and yet others with brokering and sales. We have decided to roll all these types of companies into one organization in order to provide our clients with uniform and professional services throughout all phases of the process.
Resource Exchange of America Corporation will identify and bring together the best companies within the recycling industry and elevate them to excellence, drawing on the strengths of the individual companies while combining forces to achieve synergy and obtain the ability to tackle the biggest jobs.
Individual divisions will handle asset recovery, processing and brokering, and all will adhere to the credo that is the hallmark of Resource Exchange of America Corporation: Always communicate openly, always meet deadlines and always keep promises.
You can check out their site here:
I haven’t really seen many companies that do what they do. RXAC recycles the scrap metal that is used to build American construction projects.
Over the past quarter RXAC has been extremely aggressive in an attempt to become a recycling powerhouse. They’ve been making acquisitions, revenue generating new join ventures with other companies, as well as substantial new clients.
The auto industry is tied to the metal recycling industry, and as the auto industry grows, profits for companies like RXAC should grow along with it. As you may know, General Motors just posted their best quarterly profits in SIX years, making over a BILLION dollars!
This is a great sign for the recycling industry.
While many of the other recycling companies besides RXAC really struggled during the recession, RXAC did surprisingly well. Why is that? RXAC’s access to deep water ports opened up very lucrative overseas markets, allowing RXAC to not be completely tied to the US economy.
Companies like RXAC in the recycling industry can be very profitable, especially under Presidential administrations like our current one that is very actively supporting both construction and conservation of the environment. RXAC further stands out above the crowd by NOT being completely tied to the US economy.
I definitely love to see that. I’ve never sent out an alert on a recycling company before and I’m starting with RXAC because they seem to be, as Jim Cramer would say, “best of breed.”
They’re also different than other recycling companies because other companies only do one thing, such as processing the recycled materials, OR brokering the recycled materials, OR doing asset recovery, etc. RXAC has enough infrastructure to do ALL of this, not just one little thing. Handling more areas of business definitely diversifies RXAC and also makes them stand out above the crowd.
Since RXAC revved up their plants to handle so many operations, they’ve experienced an avalanche of deals and acquisitions. They’re definitely dedicated to profits and seem to be moving in the right direction. Research RXAC and you’ll see the details on all of their recent activity looks extremely promising.
The first step in the scrap metal value chain is asset recovery, so it was a good first move when RXAC kicked off their activities this quarter by forming a new subsidiary, Asset Recovery of America (ARA) to serve as RXAC’s demolition and dismantling division.
RXAC quickly signed a partnership with a company called HHL who opened up a substantial pipeline of scrap metal for the future. With scrap metal prices on the way back up, that pipeline s due to funnel a steady stream of income to the company. To sweeten this already sweet as pie deal, Jason Livingstone, HHL’s president and a 13 year demolition expert subsequently joined ARA bringing 100% of the partnership’s profits directly to RXAC.
Having an international presence is critical in the recycling business and importing and exporting scrap metal can bring in massive profits. That’s why the recent announcement by RXAC that they have signed a Joint Venture with Sea Lion Ocean Freight, a subsidiary of Thomas Griffin International Inc., is such exciting news.
For a company with access to deep water ports, locking down a partnership with an ocean freight company of Sea Lion’s stature is the perfect strategy. With this agreement in place, the company enhances its presence in the Gulf of Mexico and the Caribbean and the partners can develop more domestic and lucrative foreign markets in the months to come. In fact, Thomas Griffin has joined RXAC as VP of Global Development and Markets, making this company’s management team quite the dream team. They are like Shaq and Kobe, LeBron and Wade, so on and so forth.
RXAC’s growth plans are extremely aggressive. CEO Dana Pekas recently went on the record saying “I am proud that we are reaching our objective to become a recycling powerhouse so fast, and now we are putting the ‘pedal to the metal’ to further expand the company.”
Obama recently proposed a $50 billion infrastructure development plan to expand US roads, railways, and runways. RXAC went on the record September 20th saying they want a piece of the action. If this goes through, we’ll be building enough roads to span the Earth SIX times! RXAC isn’t crazy, they know they can’t supply a large portion of that but they ARE saying they want to be in a position to supply a small part of it.
I like their aggressive expansion and aggressive goals.
The past 5 trading days they have had resistance at 54 cents, but today they broke through it!
This is a good sign.
I’ll send out a trading strategy tomorrow morning, but for a little sneak peek, I think a stop around 50 cents will help keep you protected. Since RXAC trades up and down nicely with strong volatility, definitely look out for day trading gains as well!
DON’T FORGET TO MAKE SURE WE ARE SEEING GAINS WHEN BIG BUYING VOLUME COMES IN!
I’ll also scan the internet tonight to see if there is any exciting hype to get RXAC cooking.
Let’s get ready to make some $$$ with RXAC!
PSA – Penny Psycho
Don’t invest based on what I say, do your own research and consult with a licensed professional before investing, only invest what you are prepared to lose.
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