Centaurus Diamond Tech. Inc. (fka CTDT)

[bizops12]

Naval - the business model has always been focused on the industrial diamond market. The margins using the maganatek process are 100's of times larger than any other method used to produce or mine diamonds. Entry is easier as well. I think they may be anticipating the need to reduce the diamonds down in size in order to cover the full spectrum of industrial diamond uses. They will also be looking into the doping of chips (they hold a patent for that process) and that probably requires very fine diamond particles.

The biggest variance I see in the old plan versus the new plan is the immediate leasing of equipment and entry into the market. I think this is a very positive move. Mr. Snaper wanted to run another round of test to refine the recipe for producing diamonds. This would have cost $400,000 to $500,000. While that would have yielded a more robust product when production started it would have also required additional funding to go into production.

Under the new plan it seems they will be leasing equipment and putting it into production while simultaneously working on the recipe and measurement issue. In other words they will be able to sell product while working out the kinks and gaining efficiency. LT had pushed for this exact same approach. It seems that Mr. Snaper (who is extremely cautious) has finally agreed to this approach.

If they begin bringing in revenue it will help offset operating costs and most likely drive the stock price up immediately. Proving the process has always been the key to the stock price. Revenues will do that quicker than anything else.

I said it a few weeks ago and still believe it. The current prices on the stock are a bargain. The opportunity to get in in single pennies may never occur again. I am adding as I can and would encourage those who have held long and stuck things out to consider it as well.