Our Stock of the Week is PureCycle Technologies (PTC). PCT specializes in recycling polypropylene (PP) plastic. It transforms this waste into ultra-pure recycled (UPR) resin called PureFive, using a patented process licensed from Procter & Gamble. The process removes color, odor, and contaminants from plastic waste and produces clean resin that can be used in applications like packaging, textiles, and plastic parts for various industries.
The company was founded in 2015 and is headquartered in Orlando, Florida. Its long-term goal is to be a leader in plastic recycling. Currently, there is an extremely low global reclamation rate of polypropylene plastic despite the creation of over 170 billion pounds of waste annually. PCT is scaling to increase its recycling capacity to one billion pounds by 2030.
What is particularly interesting about PCT is that one of the greatest investors of all time, Stanley Druckenmiller, has a significant interest in the company. Druckenmiller’s Duquesne Family Office owns over 3.36 million shares of PCT, which was the top-performing stock in its portfolio in the fourth quarter of 2024. Druckenmiller has also participated in capital raises and owns $30 million in bonds and has a position in a recent $300 million convertible preferred stock offering.
On July 2, 2025, PCT announced a strategic partnership with Emerald Carpets to revolutionize the trade show carpet industry through closed-loop circularity. The deal includes a commercial supply agreement for 5 million pounds annually of PureFive resin, which enables carpet-to-carpet recycling and meets California’s 2028 sustainability requirements. This collaboration aims to reduce reliance on virgin materials and minimize waste in the carpet industry.
PCT recognized its first revenue of $1.6 million in the first quarter of 2025 from its Ironton facility, which produced 4.3 million pounds of resin. The company holds 14 million pounds of resin in inventory and is engaged in over 30 customer trials, with an additional 50+ trials pending.
Technically, the stock has formed a cup-with-handle pattern over the past eight months and is now basing just below the pivot point at $14. We are looking for a high-volume break-out to bring in momentum buyers. As always, we will not chase entry on Monday morning but will aggressively trade the name as conditions develop.
Long PCT
This post is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this post. Do not buy, sell, or trade the stocks mentioned herein. We WILL actively trade this stock differently than discussed herein. We will sell into strength and buy or sell anytime for any reason. We will actively trade into any unusual activity. At the time of this post, principals, employees, and affiliates of Shark Investing, Inc. and/or principals, clients, employees, and affiliates of Hammerhead Financial Strategies, LLC, directly or indirectly, controlled investment and/or trading accounts containing positions in PCT. To accommodate the objectives of these investing and/or trading accounts, the trading in these shares will be contrary to and/or inconsistent with the information contained in this posting.
