We will be covering a new green stock here at Green Stocks Central.  Cereplast (CERP), bioplastics extraordinaire, debuted with its IPO back in April, but it’s been a downward slide in the stock ever since.  After reaching a high of 5.74 just a couple days after trading on the Nasdaq, it has plummeted to 3.50 and touched below 3 a few days ago.  It has been a wild ride.

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On June 8th, the company announced that shipments of its bio-plastic resins would increase 400% over last year in part due to a new global distribution deal formed with Ashland.  That sent the stock nearly doubling in just two days.  The euphoria wore off quickly and traders dumped the stock right away when it was announced the company would initiate a $7.5 million equity offering.  It’s nearly given back the entire surge and is down around the lows.  For the patient investor, it might be a compelling place to scale in.

So what does Cereplast do exactly?  They are a leading bioplastics company, basically producing renewable plastics resins that replace some of the petroleum based components of plastics with starches made out of corn, wheat, tapioca and potatoes. 

Cereplast is a very small company that only does around $3 million in revenue per year and has yet to generate a profit, but I believe this is an exciting industry and one we look forward to covering here at Green Stocks Central.  We’ll have all the latest news on Cereplast beginning tomorrow.