Why PureCycle Technologies Stock Plunged 32.5% in May
PureCycle Technologies (NASDAQ: PCT) went public in March to raise capital for its plan to use technology licensed from partner Procter & Gamble (NYSE: PG) to recycle waste polypropylene (PP) into virgin-like recycled PP. After a short-seller report attacked several aspects of its strategy, PureCycle shares plunged in early May. For the full month, shares dropped 32.5%, according to data provided by S&P Global Market Intelligence.
PureCycle is trying to clean up a large waste stream and at the same time address the needs of a huge market. According to the company, PP represents 28% of global polymer demand. Shares sank, however, when Hindenburg Research, which has disclosed a short position in the stock, called the company the latest zero-revenue, environmental-themed special purpose acquisition company to go public "with a bold story about how it will someday 'revolutionize' the plastics recycling industry."
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Source Fool.com
