Buying This Plastics Name After Druckenmiller's $300 Million Bet
The legendary investor believes PureCycle Technologies can corner a major emerging market.
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Market action is volatile on Monday morning as investors struggle with valuations and an extended market. In addition, Federal Reserve member Raphael Bostic indicated that he did not believe additional interest rate cuts would be needed due to inflationary pressures.
The Russell 2000 IWM made a big swing back up after a weak open. Breadth is running negative, with only about 40% of stocks advancing. The Magnificent Seven MAGS is green primarily due to Apple AAPL, which is up 2.3%.
My game plan here is to focus on individual stocks that I feel will deliver positive news when third-quarter earnings start to roll out in about two weeks. I'm looking for some constructive chart action in the interim. There are quite a few names I like that have good fundamentals, but good entry points and close management are critical.
One stock I'm watching is PureCycle Technologies, Inc. (PCT). I first highlighted PCET back in April when it was trading around $6. It traded all the way up to $17 in July and has now pulled back as it digests the big move. I believe this is still a very attractive situation, especially since one of its big investors is Stanley Druckenmiller.
PCT specializes in advanced plastics recycling, primarily of polypropylene (PP), which is one of the most widely used plastics in packaging, consumer goods and industrial applications. PureCycle holds an exclusive license for a patented purification process originally developed by Procter & Gamble PG. This technology enables the recycling of waste PP into ultra-pure recycled (UPR) resin, which is sold under the branded name PureFive.
Unlike traditional mechanical recycling, which often degrades material quality, PureCycle's solvent-based process removes contaminants (like dyes, adhesives and odors) to produce a food-grade, infinitely recyclable material. The company operates commercial-scale plants, with its first facility in Ironton, Ohio, and aims to scale globally to address plastic waste while meeting demand for sustainable materials from companies like P&G, Unilever and Shiseido.
Druckenmiller, the billionaire investor and founder of Duquesne Family Office, is considered by many as one of the greatest investors of all time. As of the latest 13F filings (Q2 2025), Duquesne Family Office holds over 3.36 million shares of PCT, making it one of Druckenmiller's top holdings and the top performer in his portfolio for Q2 2025 with an 88% gain.
In June 2025, Druckenmiller led a $300 million equity financing round for PCT. This capital is being used for PCT's global expansion, including new plants in Thailand, Belgium and the U.S. The goal is 1 billion pounds of total recycling capacity by 2030. Druckenmiller is betting on a monopoly-like edge in high-purity PP recycling amid likely increased demand due to the EU's 30% recycled plastic mandate by 2030.
Technically, the stock has pulled back to key support just under $14 and near its 50-day simple moving average. Key support is around $12. The company will be issuing very important details of progress along with the third-quarter earnings.
I am looking for some positive anticipation to build as earnings approach. It is still early, and we will use volatility to build and manage our position.
Stock picking is the name of the game as we head into the next round of earnings reports.
At the time of publication, DePorre was long PCT.
