Tomahawk, WI 8/08/2013 (Basicsmedia) – Cereplast Inc (OTCMKTS:CERP) used to be known as Biocorp North American Inc before changing its name in 2005.  The company came into existence in 2001 and Seymour, Indiana was chosen as the location where its headquarters will be put up. It is responsible for developing and commercializing resins which it then sells to its countless clients. The company is employer of 16 individuals who work full time for it.  It reported its latest financial results recently, and the question is, what should its shareholders have to look forward to for the remainder of 2013?

What Will The Second Half of 2013 Be For CERP Shareholders?

Since the first half of 2013 is gone, the company is now tasked with the job of offering certain guarantees or ideas about how the second half will look like. The first half of 2013 has been good for CERP, and it expects to maintain similar levels of growth and performance in the second half. As Italy waits to pass certain legislation which will determine how plastic bags will be used in the nation, CERP expects to be one of the major beneficiaries if the legislation is anywhere near what it expects. This will definitely be transferred into positive performance.

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Diagram shows the sales trends for bioplastics which is sold by

CERP and other companies. Image is courtesy of www.cereplast.com

As the diagram above shows, there is a huge demand for bioplastics worldwide. However, the demand levels differ between companies and countries, and this could possibly be due to the varying levels of legislature passed within each country. In the second half of 2013, shareholders should expect to see an increase in revenue collected during this period to the tune of around 1.7 million. Shareholders have every reason to believe that the company will enjoy comparative growth during this period, just like it predicted when announcing the first half results of 2013.

Where Does CERP Expect its Revenue Growth to Come from?

The biggest contributor to CERP’s revenue growth is going to be Italy, and Europe in general. The company expects to see favorable introductions in the legislature which Italy is expected to pass thus presenting it with a very good platform through which to enjoy the results it hopes for. It is worth noting that CERP has already partnered with close to 70 Italian companies and this will give it a major foothold and presence in the market thus driving its sales and profits upward, to the joy of all shareholders. CERP expects to earn $50 million in revenue from Italy alone.

CERP isn’t over-dependent on the Italian market. It has not ignored the market in the U.S and India which it has been servicing as well and expects these two to add a significant contribution to its coffers. CERP uses cutting edge technology to develop biobased plastic materials which will serve the needs of its customers across the globe, while adhering to the legislation and policies passed by each respective government or country. The focus on Italy is only a short term measure, but CERP is interested in boosting its presence in the entire globe.

Currently, the eyes and attention of CERP are focused on the EU, Asia and North American markets where it expects to see a major growth for the company. When this happens, shareholders will have every reason to smile all the way to the bank because they will get wonderful return on investments from these shares. I would personally recommend it to anyone interested in this sort of market, since the company is being run extremely well an it appears to be financially sound.

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