Appliance Recycling Centers of America (ARCI) is looking tempting

Appliance Recycling Centers of America, Inc. (NASDAQ:ARCI) is a retailer and recycler of household appliances and turning trash into millions of profits.

The Company generates revenues from retail sales of appliances at its ApplianceSmart factory outlets; fees charged for collecting and recycling appliances for utilities and other companies, and selling materials from the appliances that it collects and recycle, including appliances from its ApplianceSmart factory outlets. 

Although the stock has grown by 322% in the last 52 weeks, we think there is more room for growth. On October 27th, they released strong Q3 profits, reporting reported sales of $27,370,000 for the third quarter of 2007 ended September 30, an increase of 32% from $20,783,000 in the year-earlier period. ARCA reported net income of $1,403,000 or $0.31 per diluted share for this period, a significant improvement from net income of $21,000 (no per share earnings) in the third quarter of 2006.

After the news, the stock had a quick bounce and quickly came down when the market turned south in October.

This is a great buy opportunity to pick up some shares of ARCI before they report Q4 earnings, which we expect to be just as strong as Q3.

Nearly everyone recycles these days, and ARCI is one of the nation's largest recyclers of major household appliances for the energy conservation programs of electric utilities. If you’re looking to buy a stock that you can feel good about owning, this green friendly company is the way to go.

The potential revenue ARCI can access is unfathomable. Roughly 200 million TV’s are thrown away each year. Also think about all the Refrigerators, Toasters, Ovens, etc. etc.

Just think - your old toaster and microwave could someday turn into Johnny 5, and ARCI’s stock price should hit $10-15 in the next year.

Article written by Eric Cheshier

Co-Founder of theStockMasters.com

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