I had a conversation with Michael...
Friday, I had a short chat with Michael. It wasn’t extremely revealing, mostly a rehash of the same ol’ stuff, but as usual he sounded very positive about Eco-Safe’s prospects.
Here’s a breakdown of the topics we discussed:
HAZMAT – The product is ready (as recently PR’d) and the patent application is completed. The unit is apparently being used (tested?) by the head of the LAPD Hazardous Materials Unit and they -being the LAPD - are responding extremely well to the unit. There are very strong indications of sales coming first quarter next year from the LAPD, and there is also the likelihood of sales to the military at some point in the future.
MD -1500C UNIT – Hoping to appeal to smaller companies etc, the new unit has a base price that is $20-$30k less than the next largest unit and has some improvements. For example, the larger, older unit requires a plumbing upgrade that can cost an additional $40-$80k which can obviously be cost prohibitive. In addition, the new unit also circulates the water, which I guess the older unit doesn’t do (not sure of the advantage but their obviously is one).
PATENTS – The process is ongoing, but he said they expect to get all of their patents (including Hazmat) because there isn’t really anybody competing with them in the industry. This really is huge.
SEPTIC TANK – Like has been reported in the past, a couple were sold to the city and county of Los Angeles (one is in a fire department) and are working well. However, there has yet to be any other sales of the unit.
THE ECONOMY – Michael said it’s been taking a toll on them. He believes it has been preventing a lot of businesses from ordering, but they are still getting quite a few inquiries. He mentioned that today he spoke with a company that has 30-40 supermarkets and was interested in finding out more information.
PAUL DOUCETTE – When I called a few months back and was referred to Paul, I was told he was the CFO. So I asked Michael in what capacity Mr. Doucette works for the company. Michael said that Mr. Doucette “officially” works for them full time, but he would not say what his actual title is. I’m still not sure if he’s actually the “Director of National Expansion” as listed on the website or if he’s doing something different (or additional) and they don’t have a name for his position. Anyway, this part of the conversation was… strange.
LARRY LAVERNE – I asked about Larry’s postion (because I was told last time that Paul was the CFO) and Michael said Larry is absolutely still with the company in full capacity. So, I guess we can assume he’s still the CFO. Or can we? (cue eerie music here).
EAST COAST SALES STAFF – still exist, still working. Michael didn’t say anything else about it… er… them.
NEW PRODUCTS – As always, I wanted to know what’s new. Michael said they have a couple new products in the works that they believe will eventually be part of the product line. However, he then told me that I would have to wait for our next phone call at the end of the first quarter to hear more about them.
SUMMARY – Multiple times Michael referred to the first quarter of 2012 as when they expect some big things to happen. He specifically said shareholders should be, “very happy” the first quarter of next year. Of course, he’s said that many times in the past so… we’ll see. As for his demeanor, Michael was (as usual) very positive about all the current developments, but (as usual) he kind of lacked energy and enthusiasm via the phone. Basically, he sounded kind of tired and not all that interested in elaborating much on any of my questions. I suspect some of this is directly due to the company trying not to give too much away, but his manner somewhat belied his positive words.
-Plee
P.S. - HAPPY HOLIDAYS!
ESFS is gonna make me rich. Seriously... rich.
