Previous company announcements have indicated that Cardia was...

Previous company announcements have indicated that Cardia was introducing their range to FMCGs, but didn't name which ones in particular. The quarterly report mentioned that some of these had proceeded to or nearly completed in-market trials, and certain customers were back-specifying Cardia products.

It's still very early times but this is definitely really great news. I have no doubt that many customers are confident in Cardia's products, so technologically I believe we are in a sound position. CNN also has somewhat of a first mover advantage in this market, which is also good news as long as the bioplastics market continues to grow. In my mind, the main drivers for this market are corporate sustainability policies and the high price of oil, which would bear on the value proposition of bioplastics over conventional plastics. The hurdle in my mind was always the challenge of turning a good idea into sales. Right now, it's looking good but I'm going to be cautious here and wait for more corroborating numbers in the next few quarters.

I think this stock is undervalued, but for a good reason. Once Pat Volpe starts proving the revenue generating ability of bioplastics, we should get a repricing by the market, and hopefully get some brokers on board. However, I don't think yesterday's announcement is enough to convince the market yet, and I feel the share price may fall back a little between now and the next announcement. I'm still in the red for this stock so I hope the next announcement is great and not far off.

Good luck to all.