Rental Car Industry Heavyweight Seeks a Lighter Footprint
From time to time in my search for undiscovered companies, one will jump out and grab my attention. In the case of Ecologic Transportation (OTCBB: EGCT), it was an old familiar industry heavyweight at its helm that prompted me to "look under the hood" of this company.
At the helm of this little eco-friendly company is a highly accomplished and respected gentleman named Bill Plamondon. Plamondon spent 19 years with Budget Rent-A-Car, the last five as CEO. Shortly thereafter he was president and CEO of Alamo and National Car Rental, where he rented millions of cars to millions of people.
After years of admittedly contributing more than his share of dirty fuels into our air, he decided it was time to start an all "green" transportation company, and Ecologic Transportation Inc. was founded as an innovative company dedicated to environmentally friendly transportation products and services by providing an agnostic approach to green cars and clean fuels.
Ecologic Transportation is an all environmental rental car company, filling a void in the traditional rental car business. Plamondon saw the demand for green rental cars far exceeded the supply. Additionally, no other car rental company is all environmentally friendly in its operations and business practices. What started as an environmentally friendly rental car company has grown to a comprehensive environmentally friendly transportation company.
Most recently, the company rolled out Ecologic Shine?, a waterless environmental car wash process that cleans and shines cars safely using 100% biodegradable products. Ecologic Shine products and services conserve water and eliminate harmful run-off ducts. The offering is said to be good for the environment, good for the customer, good for the vehicle and important for Ecologic Transportation shareholders, good ! for the bottom line. The company recently announced its Ecologic Products services contract with Park ��N Fly, a national off-airport parking company with more than 25,000 spaces in 12 airport markets. Ecologic Products is cleaning cars with environmentally friendly Ecologic Shine?. Currently operating at locations in Atlanta, Ga., with scheduled openings in San Diego and Los Angeles, Calif., expansion continues to the remaining Park ��N Fly corporate locations including San Francisco, Oakland, Calif. And Ontario, Calif., Houston and Dallas, Texas, Minneapolis, Minn.,? Cleveland, Ohio, Fort Lauderdale, Fla. and New Orleans, La. This model alone appears to have the potential of being highly scalable, quite profitable and potentially a company maker.
Admittedly the company is still in the fairly early stages of its development and its trading history is somewhat limited having come public through a reverse merger late last year. Its recent pullback in price makes it that more interesting. I've typically found that when you have a proven and accomplished executive like Plamondon essentially come out of retirement to run a small company in a multi-billion vertical he already knows and has had success in, it's worth watching closely. While Plamondon is known as a charitable man who gives back to his community and especially to children, we see his filling the CEO role and being the company's largest shareholder as clearly profit driven. This is obviously an equity play for him which completely aligns his goals with shareholders. I'll be watching Ecologic Transportation and won't be surprised in the least if its CEO Bill Plamondon follows in his past footsteps of building successful businesses and creating shareholder value.
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