NEWP gets bought by Lignetics after their parent company goes BK

Don't think there will be any changes at NEWP...

Rentech Files Voluntary Petition for Relief under Chapter 11

 

Maybe if they didnt charge $280 a ton for pellets made 20 miles away.......I mean if dotman can by Douglas Firs locally for as little as 177. We should be able to get NEWP a lot cheaper.

 

Exactly! I'm literally 15 miles from their plant and I can get stuff made in Canada and Maine much cheaper (and the pellets are at least as good).

 

That’s just plain silly. It also undermines the common theory / excuse that pellets from the west coast cost so much more here, due to shipping.

 

Exactly what makes them worth $ 280. a ton at the pellet house I do busy when I can get LaCretes , North Country or Cubex for $ 250 - 269 .

 

Maybe the Canadian exchange rate?I dunno.

 

Support of a Corporate infrastructure that for years has inflated prices -> to support various local, State, and Federal politicians / Board members who have lobbied at each level, to support said Corporation -> and each succeeding takeover, or buyout?

*Don't get me wrong, I'm all for everyone making a profit / decent living, but as you all know, we're not talking Douglas Fir pellets here: rather an average heat pellet, with moderate to above average ash.. End result is above. Just hope the working folks that are working there aren't badly affected.

 

Yea, but don't forget that there is a retailer in the mix (usually), in between the manufacturer and the end user. Each retailer has a different business plan, and how much gross profit they have to make and survive varies. We have all gone around and around here as to whats "fair" for a retailer to make on pellets.....not really a point in beating that dead horse.

Also, shipping.....part of the retailer cost. And its considerable. Any guess how much it costs to bring those doug firs out from the west coast? Even setting up a tractor trailer to go to Jaffrey......still overhead, though nowhere near what the shipping is from the west coast.....

Now, rain down the grief!

 

Those are all valid points LW.

I did not, or currently, own any stock in this Company, have not followed the chain of events by the principals involved leading to the demise, and only burn(ed) a few test bags each year to check quality (consistently low), so my opinions above are my own, based on past observations, from years ago.

 

You have a good point. One retailer around here think $6.79/bag of Maine's Choice is a good deal. Another thinks $7.00 for NEWPS is a good deal (well, it is compared to the MC deal).

I'm not sure how either gets rid of pellets like that when TSC is literally 2 miles down the road and has MWP's (better quality) for $5.29/bag.

 

yep....thats the idea....the laws of supply and demand, right? Capitalism at its best. If one vendor is too high, look around for another better deal. Of course, if one vendor is too low, in that they aren't selling at a profit which gives their company a sustainable life, they wont be around either.......which doesn't mean you shouldn't take advantage while you can!

 

I dont sit much these days

 

Too bad they coukdn’t hold on just a little longer. Old boy just cut them a tax break that would allow them to take a nice bath in their revenues, and *for sure* they would have passed their newfound wealth into the end customer. $280/ton would have been at least down to $278/ton. Now we’ll just never know.

 

I dunno.....I worry a bit about too much consolidation in the industry....that usually doesn't bode well for the end-user.

 

100%

 

So I did some reading, and it looks like this Company had a 'perfect storm' of bad events back in Feb. '17 which they couldn't recover from, so my bad - the environment from years ago I based my post about above was "ancient history" / under previous ownership.

Thought it important to clarify that. It seems like these folks were trying to make a real go of it, from what I read.

LW, I get what you're saying about Manufacturer vs. Dealer cost / transportation - hopefully Lignetics can get some real Logistics in there to keep everything going, & get the costs down.

It's sad their business model hasn't adapted over the years, when they were the 'only game in town' their pricing & distribution model worked: but there's a whole bunch of competition and other choices now.

* JT, play nice.