GDP -- the Great Distortion of Passive

$PCT $KO

In a few months, when folks look back at $PCT and say "well where the signs they would have all these massive customers", the signs were here: $MCD plasticsnews.com/processors/… Focused on plastic to plastic solutions for a circular solution and examining how to address EPR laws covering packaging. I wonder who they could possibly get their CLEAR, FDA Approved rPP from for their coffee lids and cold beverage containers? Hint: There is literally only one provider, mechanical ain't clear and chemical is literally banned in New Jersey.

In a few months, when folks look back at $PCT and say "well where the signs they would have all these massive customers", the signs were here: $MCD plasticsnews.com/processors/… Focused on plastic to plastic solutions for a circular solution and examining how to address EPR laws covering packaging. I wonder who they could possibly get their CLEAR, FDA Approved rPP from for their coffee lids and cold beverage containers? Hint: There is literally only one provider, mechanical ain't clear and chemical is literally banned in New Jersey.

If you are short $PCT, and over 50% of the float of this company is shorted, you are now short: 1) the only company in the world that can produce FDA approved virgin quality rPP 2) with a growing regulatory mandate (EIGHT states today have laws requiring rPP) 3) the sole supplier to $SBUX $MC $CAG $PG $MARS and many many more Fortune 500s. 4) that in 3 years will become the LOW COST PRODUCER in the entire PP space. This is the ball game folks. If you want to wait for the warrants to be called and your balance sheet short to officially be over that works too. $PCT will be F500 company one day - today is a VERY important day.

PureFive® resin is officially recognized as "recycled content" by the NJDEP. This 1-year conditional approval lets customers use our resin to meet NJ Recycled Content Law mandates. ♻️ Work continues with the NJDEP toward a permanent approval. purecycle.com/blog/purefive-…

@fleckcap did a good job explaining his positions. It made the case for $GLASF much clearer for me. $PCT was explained well also.

Lot of interesting tid bits from the legendary $PCT head of IR Eric DeNatale (and lots of good answers to tech and commercial questions I see frequently as well.) 1) confirm P&G and L’Oreal are customers 2) Looking to get something out with Mars soon 3) PRICING. Brands are buying ISCC credits for .75/LB, conversations are STARTING at virgin plus .75 - that would put pricing around 1.40 /LB. Put that in your model and see what happens…. Big couple weeks, months then years ahead! youtube.com/watch?v=M4zzeeGP…

$PCT 1Q 25 Print Nice Q. I think I underestimated how much folks worried about no P&G last quarter but rest assured, they are back and ramping their first product line NOW. The commercial winds are now firmly at $PCTs back, you have regulatory tailwinds pushing brands into rPP (that has only one real supplier) while at the same time virgin prices are moving towards parity with PCT products – the result of this is “Branded pricing tracking above internal targets with numerous starts in Q2”. This will be the major theme – pricing power flexing UPWARDS. Hello $QSR and Timmy Hortons. This entire QSR coffee lid/plastic cup space will be massive – very high consumer mind and HUGE regulatory focus here (consumer single use plastic):

1/ The latest episode of The End Game with Bill Fleckenstein and me features our special guest James Aitken(@AitkenAdvisors ) and is now available at grant-williams.com

$PCT and Tales from Trenton. @VD718 wrote with much more pithy references than I could ever muster but figured a decent time to describe what we are working through with NJDEP as folks seem very scared of the timeline here. Important to understand there is not a law here that needs to be changed or any sort of legislative action. All they need is a letter from the DEP stating their product qualifies as post consumer recycled product under the NJ law. In 2025, the DEP published a FAQ describing how they interpret and will be enforcing the NJ recycling law. Unfortunately, they weren’t quite sure how to deal with dissolution as it was new and didn’t fall within the classic mechanical vs chemical framework. As a result they did essentially the following: “if you aren’t traditional mechanical but are plastic to plastic you’re not approved for now but come talk to us and we’ll get you approved”. Clearly the intent here is NJ doesn’t want chemical recycling, and luckily $PCT is pretty much exactly what NJ wants, plastic to plastic. With a little research elbow grease, I have found $PCT has been in contact with DEP for a while to resolve this and now in frequent contact with the tenor of conversations seeming quite positive. Additionally, multiple major brand have submitted letters of support with empirical data showing the process works and is indeed plastic to plastic. In my dealings with various state environmental agencies my experience is that they generally get to the right answer and it always takes way longer than you’d think. My hope was this would be resolved before the end of the last NJ admin but the Sherrill team is now here. Luckily, a major focus of hers and the new DEP commissioner is a focus on cutting red tape and streamlining government processes. Also helps that the new commissioner is a former Chemist! In summary here, no guarantees when it comes to regulators and its taken longer than hoped (I understand why Dustin and team were optimistic this would be done sooner) but after months of back and forth I think we are closer to the finish line than folks appreciate. At the end of the day, this is what NJ wants and $PCT is on the right side of issue at hand.

$PCT and Tales from Trenton. @VD718 wrote with much more pithy references than I could ever muster but figured a decent time to describe what we are working through with NJDEP as folks seem very scared of the timeline here. Important to understand there is not a law here that needs to be changed or any sort of legislative action. All they need is a letter from the DEP stating their product qualifies as post consumer recycled product under the NJ law. In 2025, the DEP published a FAQ describing how they interpret and will be enforcing the NJ recycling law. Unfortunately, they weren’t quite sure how to deal with dissolution as it was new and didn’t fall within the classic mechanical vs chemical framework. As a result they did essentially the following: “if you aren’t traditional mechanical but are plastic to plastic you’re not approved for now but come talk to us and we’ll get you approved”. Clearly the intent here is NJ doesn’t want chemical recycling, and luckily $PCT is pretty much exactly what NJ wants, plastic to plastic. With a little research elbow grease, I have found $PCT has been in contact with DEP for a while to resolve this and now in frequent contact with the tenor of conversations seeming quite positive. Additionally, multiple major brand have submitted letters of support with empirical data showing the process works and is indeed plastic to plastic. In my dealings with various state environmental agencies my experience is that they generally get to the right answer and it always takes way longer than you’d think. My hope was this would be resolved before the end of the last NJ admin but the Sherrill team is now here. Luckily, a major focus of hers and the new DEP commissioner is a focus on cutting red tape and streamlining government processes. Also helps that the new commissioner is a former Chemist! In summary here, no guarantees when it comes to regulators and its taken longer than hoped (I understand why Dustin and team were optimistic this would be done sooner) but after months of back and forth I think we are closer to the finish line than folks appreciate. At the end of the day, this is what NJ wants and $PCT is on the right side of issue at hand.

It's been a while since Bill Fleckenstein (@fleckcap) gave an interview. Really enjoyed our latest pod! youtu.be/9_fUXiKlixk?si=CjsV…

1/ The latest episode of The Grant Williams Podcast with my very special guest Simon Mikhailovich (@S_Mikhailovich) is now available to all subscribers at grant-Williams.com

REPLAY (free, eh!) | Crystal Ball: Mike Taylor’s 2026 Market Predictions app.hedgeye.com/insights/176… via @hedgeye