After More Than Doubling, This Druckenmiller Play Is Still on My Radar
I've been increasing my position and am looking to add more.
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The market is suffering from a post-holiday hangover on Monday morning. Breadth is running nearly three to one negative, with the Magnificent Seven names MAGS down around 1.2%. Tesla TSLA is the biggest drag with a decline of 7.6% as investors grow tired of Elon Musk's political priorities.
Pockets of momentum have dried up, and we only have a couple of dozen stocks moving up more than 10%. There isn't any clear theme of interest as speculative traders are standing aside.
Finding new entry points has become very difficult recently, so it is not unhealthy for stocks to pull back and consolidate. The convenient excuse for the action is tariff worries, and it looks like there isn't going to be any clear resolution there for a while. We still have a week before earnings season starts with some money-center banks, so there aren't any clear short-term catalysts right now.
My game plan is to try to limit downside pullbacks, but I have a fair amount of cash on the books, so I don't feel the need to dump a lot of inventory.
One name that I'm looking to add to as it develops from here is PureCycle Technologies PCT. I highlighted PCT back on April 22 when it was trading at around $6. The stock has more than doubled since then, but I believe it is still a very good opportunity and I've been increasing my position.
PureCycle specializes in recycling polypropylene (PP) plastic. It transforms this waste into ultra-pure recycled (UPR) resin called PureFive, using a patented process licensed from Procter & Gamble PG. The process removes color, odor, and contaminants from plastic waste and produces clean resin that can be used in applications like packaging, textiles, and plastic parts for various industries.
The company was founded in 2015 and is headquartered in Orlando, Florida. Its long-term goal is to be a leader in plastic recycling. Currently, there is an extremely low global reclamation rate of polypropylene plastic despite the creation of over 170 billion pounds of waste annually. PureCycle is scaling to increase its recycling capacity to one billion pounds by 2030.
What is particularly interesting about PureCycle is that one of the greatest investors of all time, Stanley Druckenmiller, has a significant interest in the company. Druckenmiller's Duquesne Family Office owns over 3.36 million shares of PCT, which was the top-performing stock in its portfolio in the fourth quarter of 2024. Druckenmiller has also participated in capital raises and owns $30 million in bonds and has a position in a recent $300 million convertible preferred stock offering.
On July 2, 2025, PureCycle announced a strategic partnership with Emerald Carpets to revolutionize the trade show carpet industry through closed-loop circularity. The deal includes a commercial supply agreement for 5 million pounds annually of PureFive resin, which enables carpet-to-carpet recycling and meets California's 2028 sustainability requirements. This collaboration aims to reduce reliance on virgin materials and minimize waste in the carpet industry.
PureCycle recognized its first revenue of $1.6 million in the first quarter of 2025 from its Ironton facility, which produced 4.3 million pounds of resin. The company holds 14 million pounds of resin in inventory and is engaged in over 30 customer trials, with an additional 50+ trials pending.
Technically, the stock has formed a cup-with-handle pattern over the past eight months and is now basing just below the pivot point at $14. We are looking for a high-volume breakout to bring in momentum buyers. As always, we will not chase entry on Monday morning but will aggressively trade the name as conditions develop.
At the time of publication, Rev Shark was long PTC.
