![]() ![]() ![]() A little more than a year later, in March 2019, management conceded that its multi-year investment cycle had "not delivered results." Unfortunately, EBITDA remains below 2016 levels today.ĭuring the past five years, Trecora’s stock price has dropped 41.7%, underperforming benchmark averages by a staggering 136.8%. Accordingly, in a November 2017 presentation, management projected that EBITDA would grow from $31 million in 2016 to $63 million in 2022. In particular, the Board directed substantial resources to three major projects: the D Train, an Advanced Reformer, and a Hydrogenation/Distillation unit. Regrettably, the combined $188 million in investments, which amount to roughly 95% of Trecora’s current market capitalization, has had no discernible positive impact on the Company’s financials. From 2015 to 2018, the Board approved another $115 million in growth-oriented capital expenditures. In 2014, the Board of Directors (the "Board") approved the $73 million acquisition of the Company’s specialty waxes and custom processing businesses. Trecora’s stock price returns, on an absolute basis and when compared to the broader market, relevant indices and peers and over multiple time periods, are consistently abysmal.ĭespite Trecora’s numerous strengths, first-class facilities, and excess capacity, unit sales have stagnated for years, while capital has been grossly misallocated. #Analyst at ortelius capital free#1 While we believe that Trecora has significant upside potential based on its top-quality assets, favorable industry dynamics, and considerable free cash flow capabilities, Ortelius is deeply concerned by the Company’s chronic undervaluation and disappointing performance. (together with its affiliates, "Ortelius," "we," or "us") owns approximately 11.3% of the outstanding common stock of Trecora Resources ("Trecora" or the "Company"), making us the Company’s largest stockholder. NEW YORK, February 07, 2022-( BUSINESS WIRE)-Ortelius Advisors, L.P., which collectively with its affiliates is the largest stockholder of Trecora Resources (NYSE: TREC), today issued the following open letter to fellow stockholders. Issues Letter to Stockholders to Outline the Case for Meaningful Change Atop Trecora Following Years of Stagnation and Underperformance ![]()
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