To put things into perspective, the value of U.S. remanufactured production grew by 15% to at least $43.0 billion, supporting 180,000 full-time U.S. jobs in 2011, according to the US International Trade Commission. The market is growing and with the DOW hitting 18,000+, new companies are sure to emerge as secondary market consumer electronic distributors and secondary appliance distributors. The average consumer saves close to 30% purchasing on refurbished or “As good as new” items.
As of right now, reverse logistics has gained the attention of some of the big organizations in the retail spot. Companies like FedEx (NASDAQ:FDX) on Jan. 30th finalized their acquisition of GENCO Distribution System, Inc. one of the largest third-party logistics providers in North America. GENCO will offer customers a more comprehensive portfolio of logistics services, complementing the unmatched transportation services already provided by FedEx.
This has ignited a spark in the market for smaller companies similar to GENCO like Progressive Green Solutions Inc., (OTCBb:PGSC) a returns management service company that provides a unique combination of return product solutions to manufacturers and retailers of major appliances, small appliances, electronics, floor care products, air-conditioning / filtration products, power tools and outdoor power equipment products.
A company like Progressive Green Solutions (OTCBb:PGSC) a small player in the Even if you take 1% market share of a $43B industry, a company would be roughly generating $430M a year in annual revenue. Hypothetically (PGSC) a $430M revenue number at the current price to sales ratio of roughly 2x for the logistics industry would put this stock around $8; currently it’s trading at $2.00 leaving over 400% in potentially upside. This shows investors that (PGSC) is well positioned in the Reverse Logistics industry and the companies potential ceiling for growth is still high.