A list of pros includes
- the technology is not complex in that it shouldn't be too difficult to design and build
- theoretically it can provide the improvements they tout
- if it works and is affordable, it should be able to grab a reasonable share of the available market
- they are pursing a path that should not involve large capital expenditures on their part (once they finish up the design specifications and testing).
- Hassett and Howdowanec have long successful careers as highly respected engineers
- Hassett doesn't seem to have failed in any previous position
- In the past year and a half they have build up an advisory board made up of high ranking/respected men directly involved in the industries they want to be their customers. (VP Ford who managed truck division, the current chief technology officer of Siemens, former Emerson VP with expertise in motors and generators, and the former CEO of Navistar. None of these guys are fly by night and there is no way you could find five such guys who could all be duped into believing in something that was impossible to build.
- they have made arrangements with large respected companies to manufacture production level parts for (Kato Engineering a subsidiary of Emerson) and install (the largest commercial truck dealership in Ca) their mobile generating units. This shows they are planning for handling large volumes and have enough credibility to talk to and sign agreements with companies such as these.
- they have a distinct plan and are communicating monthly on progress
- Up until this past summer they had avoided toxic debt and dilution, and they seem committed to nip that in the bud and not return to it as a source of revenue.
- They appear to have just secured additional funding this morning, looks like about 2 million.
Cons
- They have been saying they were six months from having revenue since the end of 2013. Which they had to of known was misleading or an out and out lie.
- Historically they do not communicate regularly and are prone to black outs of any form of communication when claims they made regarding license agreements and other revenue prove to be false.
- read the letter to shareholders from April 2015....then think about where they are now
- something is holding up the pumps going to market that they haven't told us about.
- the "variation" in a particular variable during generator testing in Dec 2015 has not been discussed further so we have no idea how much it will cost to resolve, nor for sure it can be resolved.
- it sounds like the initial work trucks are going to use a off the shelf generator (versus one of their heat pipe cooled). So there is the concern that there is a technical issue with their basic design.
- In their last quarterly report they were trying to borrow 6.5 million dollars. They haven't explained what this is needed for. My guess is to finish up design (and possibly fix problems in technologies).
I don't expect any bump in price from the fairness hearing resolution (if it goes their way and is resolved) unless it is accompanied by other news relating to revenue or securing funding (they had been blaming the law suit that the fairness hearing is addressing on their inability to secure funding). I see this morning that a new investor now owns 9.9% of the company or 12 million shares. At the current price that could be up to 2 million dollars in additional capital they just acquired. That could have a positive affect on price if a PR comes out noting how that 2 million will be used and how/when it will positively impact revenue. Its not for debt, so it must be to bring more product to market. At least I hope that is the case.
