Boston, MA 01/07/2013 (wallstreetpr) – American bio-plastics manufacturer Cereplast Inc (OTCMKTS:CERP) saw another upward push to its stock, this time by 28%, starting the new year on a positive note, due to recent regulations passed pertaining to biodegradable plastics by the government of France.
French regulations to the rescue
The new set of regulations stipulated by the French government decided in favor of bio-plastic alternatives (Cereplast’s specialty) to phase out conventionally used use-and-throw plastic bags. The decree also imposes a special tax on the single-use plastic bags with a view to limiting the resultant pollution effects of the non-biodegradable plastics used in them on the environment, effective January 2014. The good news for Cereplast Inc (OTCMKTS:CERP) is that the new tax exempts bioplastic bags, one of Cereplast’s specialty and key manufactured products. The French regulation follows on the heels of its neighbor Italy, which had enforced a similar regulation a year ago, triggering a sharp rise in demand for biodegradable plastic.
Positive stock moves after a dismal 2013
Cereplast Inc (OTCMKTS:CERP), a development stage firm specializing in the manufacture of eco-friendly biodegradable chemical resins essential to the manufacture of biodegradable plastic, has a current market capitalization of around $240K. In a series of stock price jumps seen since early December, this is the second time that Cereplast stocks have soared in a week, the first being last Friday with a considerable 30% jump spread over 43 million shares exchanging hands. Post yesterday’s surge, the share value appreciation has helped Cereplast in recovering most of the share value erosion it saw during 2013, a welcome respite for shareholders of the special chemicals manufacturer, which had a rough fiscal 2013 with meager sales revenue.
Despite netting losses in the past, with the American trade regulator Federal Trade Commission (FTC) recently coming down heavily on six companies with false claims of biodegradable plastic manufacture, analysts and investors feel that prospects are brightening for Cereplast with reduced competition, higher sales probability and better equity worth. Cereplast Inc (OTCMKTS:CERP)’s stocks closed January 6, trading on the OTC markets at $0.009, recording a significant 28% jump from their previous $0.007, while after-hours figures slid down slightly by 2% to $.0088.
