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DAILY SHORT POSITION
http://otcshortreport.com/index.php?index=ZERO&action=view#.U5HpcJSwKeQ
I would not try to make too much of the trading, and I generally don't like to comment on the daily trading. I'll leave that to others. I do think however investors should take note of the increasing short volume percentage that has steadily increased since May 21. On May 21 85% of the volume was registered at short. And just day before yesterday the short volume was 73%. The average daily short volume since May 21 has been higher than 50% each day of trading. That means that over half of all the volume that occurred on that day was short selling. Now, I don't think those numbers are 100% accurate, but I do think they are mostly accurate. That's a lot of short selling imo.
Myrka, I always enjoy your insight, so instead of your post going unanswered I thought I'd throw my 2 cents in.
First, that's a nice shareholder update, thanks for that (joking). I agree, it would be great to hear all about what they are up to. Maybe we will see an update soon. We will definitely get another one at some point.
Second, from my understanding STWA and the AOT would work in conjunction with the rails & Buffet, not compete with them. Same goes for the drag reducing agents. There was a time when many of us thought we would "put the rails out of business," or the DRAs. But I think that was incorrect. Imho the fact that Buffet's railway (BNSF) is growing and investing does not help nor hinder STWA. STWA does not necessarily need Buffet's attention, not saying that they wouldn't be interested if approached though. Just another cog in the wheel of oil transport, another method or option for the oil companies to move their oil. I did quite enjoy the picture you posted though. As far as the oil companies using the AOT to fill and empty tanker cars, I believe that's all a part of the process. If the upstream AOT can help move the oil from the wellhead to the reservoirs and other locations more efficiently, then it will help it get loaded onto the tanker cars more efficiently as well. From my understanding and what STWA have told us, one of the biggest problems that E&P producers currently face is transporting all of the additional oil created as a result of the shale boom going on and that's where the upstream AOT can help them, and that's where STWA will have their focus. Lastly, I don't believe we have been losing "a lot" of long time shareholders. Maybe a couple, who knows but that's normal. We are in the middle of our test. Seems funny to me if any of them would do so without knowing more about the pivotal test we are right in the middle of. Especially after waiting so many years to get to this point. But that's just me. Like I said, my 2 cents.
Very true. However I think that is assumed. All we need is a few more leases and we will be just fine. A total of 4 leases will give us somewhere in the neighborhood of $200,000 per month in revenue. That will take the burden off of the cash burn and cut it in half or more. That could be accomplished with pilot programs alone and based on all of the NDA's outstanding that is very likely. Assuming we don't get an order from TransCanada right away or sell one to another company, which could happen. Then, we will see the financials start to turn, the EPS increase, and there could be upside momentum (of the financials) from there. I don't know when this will occur, but I believe it will.
I agree, cash is a critical factor in the next 2 qtrs, but they will raise it if revenue doesn't ramp in time, which it might. There has always been a concern for cash with stwa, that's nothing new. They have always had sources and they will continue to do so. I believe that won't be a problem for them, and that the cash will be there if they need it.
I agree they are juggling a lot with the past employee list. Payments to past employee's won't last forever though, and I think much of that will run out in a year or two. However, I go back to asking how much will the $300k fixed costs really matter if the AOT sees adoption, and leases and sales start to be made. If this occurs they should have no problem juggling payments to past employees.
Disagree.
First of all, there no way our float is 179 million shares, that number is our total number of outstanding shares. Actually, otcbb.com lists that number as 180 million.
Second, I agree with you Sano that the cash on hand is a serious consideration, but that's nothing new for this company. Obviously the goal is to make money, and as I've said before it will take leasing only 4 more units to cover our expenses, and if a company buys one of our units outright I would say our cash problems would be over. The more contracts the company gets with tier one oil companies, the quicker we will get to break even status. And if we sell one that would make us instantly break-even to profitable that fiscal year. I believe that we will accomplish one of those two things or that they will raise funding from another source to carry us over the finish line before we need more funds. Worst case scenario is that yes, we would need to do an offering. However I believe if that did occur, it would not be to the general investing community. It would be to a strong hand and wealthy individual, or to a company. The fact that we are currently testing on the keystone and so close to adoption, I don't think raising more funds will be necessary. I'm sure the company is fully aware of their cash position, and have a plan. I am not the least bit worried about it. If the tech proves as valuable as they they think and/or we get just one order, they will likely be turning cash away.
Temple will work with us as they have always done, and let's not forget they have an additional $180,000 per quarter in revenues coming in now. That will offset some of the other expenses. If we get an upstream pilot there should be additional revenues from that as well. Then, if we get orders from TransCanada in the 4th qtr like someone just suggested that would take care of our expenses. If it all takes a little longer they have the bod's options where someone else just said those equal about 1.5 million and they also have some outstanding shareholder warrants. I don't believe they will be doing any more offerings, and if they do need to raise more money (which I don't think they will need to) then I would bet Mr. Bigger has sources for that. I don't believe they will use the share increase for offerings, or that they will run out of money before they transition to commercialization and revenue. They have not come this far just to run out of money in the 11th hour. I believe in the management, and they know exactly what they are doing.
And if the lease does continue the current stock price will look like a steal because the stock price will likely soar like an eagle ;)
From a revenue generating perspective the AOT is already a successful product. At the current lease rate of $60,000 per month, should that lease continue it will generate $720,000 in revenue this fiscal year.
I think this is a good time to reflect and understand exactly WHY we are invested in this company. If you're not in this for a short term trade then the stock price means very little to you. It's gut check time. Do you know WHY you're invested in STWA? I do. And it's not for any share price number on that board today. We need confirmation that TRP will continue to lease our unit or orders more units. That's all we will need to see. We won't know the number, but that's what I am in this for, is the numbers that come off that pipe. There share price will do what it will do. No one can control that. My belief is that this company is moving towards revenue growth, and that is all that matters.
I don't think TRP will drag their feet as you suggest. We will know much in the next 8 to 12 weeks. And there is nothing wrong with the test or the AOT. Let me tell you there is not a chance in hell we would ever even be on the Keystone pipeline if this didn't work. TRP has checked the AOT out top to bottom with their engineers and our biggest victory to date is that they gave us the go ahead on the installation to the keystone. Nothing is wrong with the company, and nothing is wrong with the AOT, let me dispel that right now. Also, they won't be doing another offering, those are closed permanently. No one will ever get the chance to get in at those prices again. Yes their nut is 300k per month. But they have 4 million in the bank and can raise capital in a heartbeat by having the bod exercise their options if they need to. they can also raise funding to build units. Money is not a problem.
I'm telling you what their business plan is. To lease units in the midstream and upstream sectors. Even if it is just another pilot, it will be incremental revenue, and headway into another pipeline. Remember what I said. ARG. Accelerated Revenue Growth. That will change everything. That along with building in potential sales.
The stock price today means nothing. That can and will change in the blink of an eye. Right now it's tough sledding, but the big holders who are in this for the adoption of the AOT are not selling. I known that for a fact because I've talked with them today. So everyone take a deep breath, and relax. The share price will work itself out.
I think something should be said with regards to how some take things as fact just because someone says something here. If something so deviant from STWA's current behavior or current pr strategy is said or claimed here like for example a paid stock promotion, then people need to verify it for themselves before assuming it as fact. I myself did not believe it right when I read that. The company won't keep certain media on their website right now, why would they ever do a penny stock promotion. In this case, it could have caused the devaluation in the market we are seeing today. This could have been an error, or a computer glitch, or done on purpose. The fact is that it never happened today, proving that it was inaccurate. Anyone who bought or sold on that information did so incorrectly because the information proved inaccurate. This is a warning, an alert to tell you not to believe anything you read on a board like this until you fact check and verify it. Either from myself or anyone else.
Hey JT. Thank you for the post. Ok, here's my "shot." I'm going to address some of your concerns here, and give you some insight to how some of the very wealthy investors in STWA think, and their approach to where the company is at its current state, and what they think of Gregg and his performance. But first, I just want to say that I understand how difficult it is when you have people calling you complaining that they are down, and hold you responsible for your investment advice. I've been there, and I know how frustrating it can be. The bottom line is you weren't wrong to direct them to STWA. Every reason you initially recommended them to get into STWA is still in tact today. Even more so. The story has only improved and gotten better. The only difference is the share price. You must remind them that the stock is not the company, and in fact there is very little correlation to what is happening with the company right now to the stock performance at the current time.
I see your point about intentional rumors. I don't agree. The fact of the matter is that this has taken longer than anyone has thought. Remember, THIS IS THE FIRST TIME THIS HAS EVER BEEN DONE. You and your investors must take this into consideration. On top of that, this is the first time this has been done in an industry that is notoriously slow both to adopt new technology, and to alter a physical pipeline that is considered a piece of national security. If you really knew what went on behind the scenes I think you would be shocked at the detail and minutia that has caused delays over the smallest things. Part of that is because we are altering a major piece of the United States that is considered one of it's most valuable and expensive resources pivotal to the energy security of this country. One screw up and would could have been dead in the water. It has been so pivotal to get it right the first time. Everything depended on it. Thank God we had Bjorn, and TransCanada to work with, they have been amazing at ensuring our success. What STWA has done successfully is broken into one of the stricktest industries. (We're not selling hemp mugs here ;) Not only has it been difficult, it has been expensive, and based on STWA's limited budget I think Gregg has done and is doing a fantastic job at managing this vast and detailed project. BUT, you and your investors must ask yourselves, where are we now? We have come such a long long way, do you really want to give up now, at the very edge of our success and industry adoption? What are your choices really? You can get out now and possibly seriously regret that decision, or wait a few more months to see what happens. That's really the bottom line. You know that the upside here is huge. It's what keeps you in this, and recently the upside has done nothing but get bigger and bigger. JT, the completion of our test could literally be days away. Let me tell you, nothing will sharpen TransCanada's senses like seeing a healthy number come off that pipe. That translates directly to dollar signs in their eyes. And I don't think they will need to see an enormous benefit to be sold on the AOT. They could see initial numbers and place an order right away. Remember, they need to get the orders in early because it takes time to build these, and if they don't want to wait they could place orders right away. You asked what's going on with the AOT. That's what's going on with the AOT, and we will get confirmation one way or the other very soon.
I haven't even mentioned our other deals. Like I mentioned in my post yesterday, do you really think Gregg and company have been sitting around waiting for the test results from TRP?? There are other deals that they have been working on as Gregg mentioned at the shareholder meeting. What do you think has happened to those?
Do you think that just went away?? Think about it logically. I honestly think it would be foolish for someone to throw the towel in right now, on the eve of our success. I dont care if the stock goes down from here we could get news that rockets this any day now. I am holding and holding strong, and you know how many shares I have. That is what I would tell your investors. This is a long term investment with very possible immediate and pending results.
Listen, you mentioned below that you think Gregg has just showed up for a nice pay check. I KNOW you could not be further off the mark. From what I am hearing he is working his ass off. Just because you don't get a PR or an update doesn't mean they aren't kicking ass. They are. And I believe wholeheartedly you will see some of the fruits of their labor very soon. Gregg may not have a the perfect resume tailored to run an oil services vendor, but he's got the connections, the energy, the drive and the ambition to make this happen. And he has Ryan Zinke. Whatever your politics, we all need to thank our lucky stars we have the likes of Zinke and Don Dickson and other great board members. If and when we are successful, it will be because men like these put their reputations on the line for Gregg and STWA and made this happen. Gregg and Ryan were Navy seals together. They don't lose brother. Failure is not an option for a Navy Seal. I honestly can say I would rather have Gregg planted in that seat more than anyone else right now. I will tell you, we are where we are right now with TransCanada because of Gregg and Ryan. And you don't think they are working on multiple other deals as we speak? Really?
If you ask me these options they received are paltry compensation for the incredible things they are doing for STWA.
I told you I would give some insight into how the very large holders of this company view Gregg. I can tell you that I have spoken to some of the largest shareholders in STWA, both in the US and internationally, and they could be not be happier with Gregg's approach and performance. I will also tell you that they don't read message boards. Any message boards. They pay attention to the fundamentals. Not the number of PR's, not the levels of communication--the fundamentals. Represented by the 10k and the 10Q. And, they are fully behind Gregg and support him 100%. One reason is because they understand how the oil industry works. Imo, part of the culture is that they are the biggest most powerful and richest players on the field, and there is a certain way to do things. Their way. Not OUR way. It's THEIR way of the HIGHWAY my friend, and for right now their way is no PR's until they say. Which in my opinion is until we are proven. Go against that and we jeopordize everything we have worked so hard for and waited so long for. Imo, you almost need to be thankful we can't put out PR's all the time becasue it's a reflection of exactly where we are with these major oil conglomerates like TransCanada. They are the key to our adoption in the oil industry, and they are the key to our success. Let's be quiet, and thankful we are at where we are at. You said, "You all keep saying they don't need to communicate" It's not that they don't "need" to communicate it's that they "shouldn't" communicate too much right now because that is the best decision for the company at the moment. Becasue we are not proven yet. It's premature. But That can change in the blink of an eye, any day now. Also too, if you look at it logically from TransCanada's standpoint, they are doing business with this tiny otc company. If all of a sudden we started shouting how great we are, and PRing every move we make with TRP they would not look fovorably on that, and it could put our relationship with them at risk. All of that said, I do think we are close to being proven with the test going on as I write this. I also think when that happens we will see a change in the approach to PR's and you will get more of what you want to see.
You asked, "when do you all plan to admit you're wrong?" My judgement will be based on the fundamentals of everything I just mentioned. I am not basing my judgement of the company on the stock price. I don't see any other way you could approach investing in this company. Tell your investors that. Knowing we are on the otc, and not knowing exactly to the day when this will happen, imo it's lunacy to base one's overall view of the company based on the stock price performance alone. Is that really why you got shares at .25 or .30? Is that really why you got into this? For PR's that will keep the stock price up temporarily? What you should be looking at is the technology, and seeing the AOT being adopted by the industry. And just think for a minute how close we really are to that. and that's not an intentional rumor, that's not a guess; that' a fact. There's a great deal more to building a company than it's stock chart. Ask any company built from the ground up like ours is, and I'm sure you would be impressed by how far and how fast we've come with the AOT. In fact by the oil industry's standards (which are slow mind you), the adoption of the AOT has been a lighting speed compared to other technologies adopted by the industry.
Like AISI pointed out, the stock price will fluctuate, we're on the otc for crying out loud, but what does not fluctuate is the real progress we are making and have made in the oil industry and with our customers. Our customers are all that matters. Believe me when I tell you, if STWA gave you a laundry list of the the potential customers they are talking to, we would not be having this conversation. And you can take that to the bank.
You asked, "what is STWA's business plan, do they have one? I honestly can't believe you asked this question. But let me tell you if you don't know. Quickly, It's to move the AOT as well as other product lines into commercialization by realizing it's existing NDA's and working with customers to fulfill their viscosity reduction needs (pertaining to the AOT) by realizing lease agreements and sales. At $60,000 per month per AOT, leasing just 5 of these units get's us to break even, and leasing a mere 20 units could shoot us to $2.00 to $5.00 with out an extremely stretched valuation (at $2.00 we'd have roughly a 25 forward PE multiple based on $15M in revenue. And this is a super conservative estimate). A 25 multiple is very low for the revenue growth we will see. And I'm not including any momentum or exuberance in the market. We could easily see this hit $10 to $20 with a big contract or even the market building in expected future revenues. Now that's not a lot to ask from this company (20 units) overall. My God, do realize how many units we could lease in the upstream to just one average size E&P oil company? How about several E&P companies? The numbers can get mind boggling if you let them. Let's start with 3 shall we? Remember, each time we do another pilot, we will be leasing another unit. That's real income that will roughly double our earnings growth at this early stage each time we lease another unit. Each incremental lease will represent substantial earnings growth assuming our expenses remain somewhat stable. And what do big institutional investors sell their Grandma for? ARG. Accelerated Revenue Growth. Now, I'm not even including an upside surprise like an order from TRP. If we get an order for multiple units this thing will take off like a bat outta hell.
The last thing I will touch on is that I have an idea why you have been so vocal on here. You want the company to hear you. Unfortunately, like the large investors the company does does not read these message boards. I think at one point Bonser might have but I don't think so anymore. So all of this posting is just doing more damage than good in my opinion. I just think we should be mindful of the negativity. You have a lot of people that listen to you JT. These are only all of our opinions, the actual facts and the truth however will be revealed in the fundamental progress this company makes. I do believe we are weeks if not days away from seeing some real meaningful fundamental progress.
Zero you are one of the posters I respect here the most. I admire your loyalty & I sincerely hope you are right. Unfortunately I'm allergic to Koolaid & my time limit for hearing "It's coming at any minute" kinda expired about 2 years ago.
It got REALLY old this year & now I'm embarrassed I even believed what seems like intentional rumors that I feel may have been used to take advantage of my influence with others.
The facts are "The road to Hell is paved with good intentions". Is Gregg working hard to make this happen? I believe he is, but there is a gigantic difference between someone that has trained their whole life to compete in a decathlon, and someone that just got off their sofa & shows up because they heard there was a race that pays well.
At this point I need something to base faith on. I can't stand the fact he is so grossly overpaid, and wrote in changes to his employment agreement that to me are beyond shady. Gregg has no experience. He has no education worth mentioning, he has no track record of proven success & our PPS has been a complete & utter embarrassment & failure since he took over with no end in sight, so where or what am I supposed to base this "Faith" on?
You all keep saying they don't need to communicate. You said that at $1.20, $1.00, $.90, $.80 and now in the $.70's. When do you all plan to admit you're wrong? The longer they do not communicate, the lower the PPS goes, the better the chance of another company using leverage to choke STWA out to TAKE the AOT from them. If there is REAL value, you can bet your ass someone will try to take it.
IMO, This company intentionally suppressed an important, time sensitive article so it had almost no impact. They suppressed important material events that should have been announced to the public for our sake, instead of HIDDEN in a 10Q. Why was the joule suppressed & hidden? Another NDA?
They refuse to announce anything of substance, yet they release pure BS, FLUFF like "EnergyTech Africa" when they absolutely knew beforehand that would be a complete disaster. What happened with ETA? Are they NDA now, or was that just BS? Oh wait, we do not need to know? Right?
What's going on with the AOT? Does anyone really know? Is it on the pipeline still? Is TC happy? Was it a success or a failure? Where is the proof? PROOF!
Where are we going & how do we plan to get there? What is STWA's business plan? Do they have one? I sure the heck would like to know their plan on how they are going to pay us all back with an ROI. And don't give me "Just have faith".
Bro, you know I like you. I have a completely open mind. I want to believe so "Sell me". Convince me with facts, logic and sound reasoning on how Gregg is going to turn this around before he BK's this company. This goes for all of you.
I'm not an easy sell, but if you can make me believe, I can sell pork to a convention of Rabbi's. As you can see by my posts, when I no longer have confidence, I do not tells lies or hold my tongue. I tell it like it is.
Considering I still have a substantial holdings in ZERO that might not be so bright on my part, but honesty is what makes me tick & I owe everyone that listens to me to be unbiased & completely honest with my assessments.
Take a shot, because its in every shareholders best interest to have me behind a ticker "Believing" instead of "Pissed-off".
I can't predict stock prices, nor if there will be a hit piece again. What I can predict is that Gregg Bigger and several others will do whatever it takes to see this through. And that even if the stock goes down or a hit piece occurs, that has no bearing on where we are fundamentally with the company, how hard Gregg and company will work, or how much interest the oil industry has in STWA, and the efficacy of our technology. What if we go down in the market and the next day the company announces a development with TransCanada or with a new and different customer? I agree with Sano when he said this is a fundamental story. Being so close to the test results, I really think anything could happen any day now.
I understand. The stock is volatile. But the stock is not the company. We must remember to distinguish between the two.
I wouldn't waste your time. There will be now way for you to see anything or tell what's going on. Let them run the program. The real defining moment will be what I just described. We will know.
The pilot is being done as we speak. Honestly, it could literally be any day. We don't know how quickly they will get numbers off the pipe. My guess is it won't take long. They could know right away, but remember they are testing up to 50 different types of oil, and that takes a good amount of time. They have to get the baseline for 50 different types of oil, and it's impossible to know the technical details of how the test is being done.
All I will say is do not discount what could happen VERY easily between now and the next 8 weeks. Do you think STWA management has been sitting on their laurels for the last 6 months merely completing the installation and waiting for the test to be done? I think not. Gregg has a powerful work ethic. He is planning and executing. With so many other NDAs out there anything could happen. I don't think we will have to wait until summer to see the hard work they are doing pay off.
First of all, there are no warrants due this year at all. Second, management is not "taking" your money. They have simply received their options per their scheduled compensation outlined in ther agreements as board members. They are not living gregariously on your money as you so imply. Let's have some common sense and stop the panicking. When it's warranted the stock price will reflect all the great things that are going on right now behind the scenes. If you believe the test will go well and TRP will move us to a permanent location, then I think the stock is very undervalued. Also, I take issue with all of the attacks on Gregg Bigger. IMO he is the best thing to ever happen to STWA.
I was reading some of Whacky's posts and I was going to send him a private message but I think posting a response to his concerns here would be beneficial to all, so why not. First, Whacky is concerned about the PR policy at STWA. He wonders if there will be the same policies in place with additional companies who STWA strikes a deal with. My answer to that is no. I do not believe the company will have the same strict NDA policy with other customers. It's my belief that because TRP is our first customer and our technology is not officially proven yet, there is a need by TRP to keep this quiet. Let me emphasize the fact that we are indeed not proven yet. That's a big one. And it's the most pivotal step in STWA's history. For once we are proven, if we are proven, it could mean adoption of the AOT by many tier one oil companies. Yes, the big payoff we've all been waiting for. It is also my belief that once we are proven, and TRP moves the AOT to a permanent installation site, I think STWA's PR policies will change. Possibly drastically. One very important thing to keep in mind with TRP, and likely the most significant aspect of our relationship with them is the fact that we are a TINY company compared to these $35 Billion oil companies we are dealing with. In my opinion we are in no position to put our foot down and make any sort of demands. If TRP wants to keep this quiet, we likely have no choice but to say "yes please, may we have some more?" Like it or not, that's the position we are in. TRP is calling all the shots. FOR NOW. I really want to emphasize how we are in no position to negotiate. Some people think we can just say "Hey TransCanada, we've got something you want, so, if you want it, you'll play by our rules." Sorry, it doesn't work that way. We are not proven yet. And the fact of the matter is that we need TRP as much as (if not more) than they need us. Sorry, those are the hard facts. Anyone who thinks we can make any sort of demands is demonstrating a severe lack of knowledge of how the oil business or STWA's business is run. Without this test, and TRP's resources, their money, their 27 engineers, and their stamp of approval, we would be so much further behind than we are right now. TRP is our bright and shining hope. These are enormous 35 billion dollar behemoths we are dealing with. They are in the drivers seat. Right now it seems TRP wants to keep this contract under wraps. FOR NOW. That could change very soon as this pilot is progressing, and STWA and TRP could have some idea of how valuable this is very soon. More importantly, I would also remind Whacky that we are not under an exclusive contract with TRP. And the minute we sign a deal with another oil company imo those same PR policies will likely not apply. I don't know for sure, but we've already seen how Kinder-Morgan has held our hand high and proud, introducing us to the world at the PEG conference. That's one reason why I believe things will be different with another customer, whoever they are. Anyone who claims that Gregg has no guts bc he won't put out a PR is completely ignorant about the oil business. TransCanada wants to keep this quiet. Do you really want to put this whole deal, and STWA's future at risk so that you can release a PR to make US shareholder's happy? Anyone who says yes imo is a fool. Anyway, small updates that aren't material news isn't going to keep the stock price up, and I disagree with anyone who thinks otherwise. We are tiny shareholder's compared to the large institutional investors who we can expect to see take a position in this company if things go our way. The sophisticated investors I talk to look mainly at 10Q's and 10k's. If there is a PR, they don't care about tiny updates, it should be something worth announcing. Material news that happened outside the 10Q. Gregg knows what he is doing, and he knows how to deal with these billion dollar oil companies. We are in fantastic hands. I must say, I liked what Cecil stood for, but I would not feel as comfortable as I do with Gregg at the helm. Gregg is one of the best things that has happened to this company, thanks to Cecil of course. I have complete and utter confidence that Gregg is making the correct decisions with regards to the PRs and everything else they are working on. He is ensuring STWA's future by doing what we need to do now, until the time comes (which I think is not far away) when we can be a little more in the driver's seat. I think all that needs to happen is that TRP keeps this unit permanently. If that happens, people will assume more orders are coming. If STWA announces the fact that TRP is moving the device to a permanent location, or if the lease payment is still on the 10Q's that is what we want to see. And if this test goes well, and TRP keeps this AOT and moves it to pump station #1 or where ever it's going to be permanently installed, the entire face of this company is going to change. That means adoption. And it's well known in the oil industry that if one major oil company starts using a new technology, other's want it too. If and when that does happen it will be because Gregg had the foresight to act accordingly during these times, and not piss off our first customer that can pave the road to industry adoption. So, just in summation let's lay off the whole "more PRs" chant and let the professionals who we know they are run the darn company. Have some faith in management and Gregg, and wait for the results of the pilot. Have confidence they know what they are doing far better than you or I, or anyone else on this board.
Again, the bod has not exercised anything when referring specifically to the form 4s released the past couple of days. They simply have received options to purchase shares at .86, and the options alone. These form 4s really mean nothing except that the bod is receiving their scheduled compensation.
FORM 4s
Let me clarify this as not one post has gotten it correct with respect to the Form 4s. These are not stock grants, nor did they receive anything for free, nor are they exercising their options. All these form 4s are reflecting is that the bod has received OPTIONS (the option to purchase) stock at .86 between 5/06/2014 and 5/05/2024 with some exceptions like Mark Stubbs who received 29,070 options of which are not exercisable (buyable) until 5/06/2015. This is their scheduled compensation; they get these each year for being on the bod. These are merely options that the bod can choose to pay .86 per share for the amount of shares represented by the derivatives (options) they are receiving listed on the form. It says clearly and obviously at the bottom of the forms. Nothing special here, except to note that when the bod does exercise, the company will take in those funds and increase the balance sheet. Something around a half a million dollars based on the forms filed the past two days. The bod has other options as well which they could choose to exercise anytime should they wish. All of this is in the K and the Q.
Yes, 30 mins before the close. I realize that late Friday releases are looked upon less favorably in general. But at least they released it during the trading session.
If I may correct you Mr. Sano, the 10Q was released well before the close and it appears people were trading on that as there was some volume into the close. They were buying, so I guess they thought the quarter was pretty good. It seems management is more confident then you suggest.
I was also going to say that the install was completed in April, meaning payments began in April.
Also, The PEG Power Point Presentation is on our website under "Presentations" in the investor section. Here's the link for those that would like to view it:
ir.stockpr.com/stwa/presentations
One potential reason for the strict NDA and not releasing the test results, is that TransCanada could have said something to the effect of, "hey, if this works like we hope, we'll just buy you out." If that was the case, TransCanada wouldn't want to inspire any competing bids for the company, push the price up, and create a bidding war. It's just one scenario. My point being, there could be a myriad of reasons why they don't want to release the test results.
I disagree. I definitely would not say this is a "fluff piece." There are mostly facts and informative information about the company's development, and their story. I quite liked the piece and found it to be very accurate without inflated claims. It was well written, explained the science behind the AOT well, and gave an accurate depiction of passed events which have shaped the company.
With regards to the increased flow, you said it yourself, if the Up-Stream producer's lines are outfitted with AOT's, then it looks to me like we are moving more oil, & as a result we are talking about a whole other ball game. In which case the article was not inaccurate. Sano, the fact of the matter is you are not qualified to make the call that the AOT Mid-Stream does, or does not increase the flow rate. In fact, I would say that Dr. Tao of Temple University would disagree with you (as well as many on here). I am not saying I have the answer. There are simply too many factors involved for anyone who is not an expert physicist to make that call. There has been much debate on here as to the scientific principals behind how the AOT works, and what it can do, but neither you, nor anyone else on here has all the answers. That is why TransCanada is doing this pilot program. To determine the varying effects of the AOT on up to 50 different types of oil at the flow rate of the Keystone Pipeline. This analysis with give us real working data on the commercial AOT Mid-Stream that I think will prove invaluable. Let's leave it to the experts and the engineers at TransCanada to run their pilot program and do their analysis, before anyone on here (including you) plants their flag in the ground and starts making absolute claims.
An excellent update. This is exactly the type of professional communication the company should be delivering at this stage. A couple were clamoring for an update, now we have one. Too many we're asking about the installation. Now we all have the answer.
Also, 2 more NDA's?!? Fantastic. Transition to digital stock certificates, and additional patents filed. And...Up-listing? This is first time they have mentioned up-listing so prominently in any communication since the shm. They mentioned becoming Sarbanes-oxley compliant in their Corporate Profile recently, but their language is becoming more overt. As a shareholder, to me this is very exciting. Real progress is being made here behind the scenes, and I truly got the sense from our CEO Mr. Bigger that he was about getting things done, and making real fundamental progress to develop the business. Again, as a shareholder, I've never been happier nor more excited about where the company is.
Hey, Nice New Intro.
Truthful Trustee, didn't you say you were working on the intro? Well done! Much much much better. It was in serious need of a renovation. Thank you for doing that. Kudos!
Wait a minute. What you say makes no sense to me whatsoever. STWA are not a manufacturing company, but they payed to have the unit built correct? And, now we have have an idea of what it costs to be built Correct? We do. And, they take in revenue in the amount listed in the contract...$60,000 per month or $4.3 million. So, whether or not they are officially the manufacturer means nothing. They still profit based on those numbers. I think it's foolish to assume the company will not take full advantage of manufacturing at the lowest possible cost and capitalizing on the widest gross profit margins possible. If it costs the manufacturer less to build on scale, they will see the return. Oh yeah, didn't you say you heard some rumor about them buying a manufacturer? Mmm, I wonder how those gross margins start looking then...
I echo Pie's sentiments. I agree with you 100% AISI, and I too greatly appreciate you setting the record straight about the 10k. The margins and gross profit potential for STWA are very exciting indeed. Especially considering how much the manufacturing costs could potentially come down with subsequent orders.
Wow you talk like you own stock. Well, I actually DO own stock and and the expenses don't bother me one bit. It's the cost of doing business. We would not be doing the things were are doing now without it costing some money. Do I think they could have kept the expenses lower, maybe, but I do think Mr. Bigger is cutting costs where he can. Anyway, I don't trust your numbers. You can't get the numbers right on the manufacture cost, and since you can't even keep the basics of CGS and SG&A straight I don't accept your cash burn numbers to be accurate. On top of that I don't believe for one minute there was any european "vacation." It was completely clear why they went to Europe, and we've heard about the fruits bared from that trip. The airline and travel costs are a necessary part of this business. How do you expect them to do business? Take a bus? Please. To top it off CK did many great things for this company, I don't agree with how you cast aspersions on our former CEO who was largely responsible for getting the company to where it is now.
Alkaline, I couldn't have said it better myself. Very well said. I didn't mean to spark such a debate, but I agree with you and Whacky. Spot on. Whacky, also very well said.
MJ, I mean't no offense. Not that you want my opinion anymore, but I've gone through the same frustrations in the past. This is a long term investment, that said we are making fantastic progress. I think many in the technology world would say we've gone from the lab to real world application in record time. Patience is a virtue when it comes to STWA. If I were you I would adjust my expectations accordingly. I wish you the best of luck with your investment.
My opinion is that I would rather not see news for the sake of news. When they have news worth releasing, they will put it out. I must admit, I'm tired of scared shareholders pleading for news. I have seen you do this on wssr before as well, and if I remember correctly I responded quite harshly to you. Listen I appreciate your efforts, and I don't mean to belittle your request. But they just released news on Friday, yet you're here on Tuesday asking, "when will we see any news."
Mmm. Very correct. He will not change, and I agree, that was never the point. Also, he has never chosen to believe management, period. Whereas I do without a doubt. Real progress is being made here, it makes you wonder why some refuse to see it. Now we can see exactly what the manufacturing costs and the margins are for this commercial prototype, and it is a far cry from what he predicted.
What do you mean by "news." We know what they are doing. Honestly, I'd rather them focus on real productivity then waste time and resources on us shareholders.
As I See It, This is a very thorough summation of exactly what we are looking at. It helps to read what they say in the 10k, doesn't it.
Additionally, Sano talks about a "record loss." Well, we have no revenue in this report, so isn't merely turning the lights on a "loss" on the books so to speak? Would it not just be the same to say that any expense at all equals a "loss" on the accounting books? So, it simply means we had higher expense in 2013. To that I would simply say; ya, no kidding. We built the AOT in 2013, our overall expenses should be higher.
Oh yes.....and there's that as well. Thank you As I See It for reminding us all. The list is growing longer with regards to how many things Sano has been wrong about.
Alkaline, I like your thinking here, but I think they are much further along with the up-stream design specs and fabrication than you assume. I say that only because, again at the shareholder's meeting, my friend sitting next to me asked Mr. Bigger directly if they had up-stream specs and how far along they were. The CEO looked at the attorney and got the partial nod to let us know that yes indeed, "we have those specs." They couldn't tell us too much but I got the distinct impression from the rest of the presentation that they were quite far along. How far along exactly we won't know until we see it come out.
I am not surprised. They don't want to be bogged down with litigation, they want to progress and move forward. They are trying to get things done, and 3 million shares won't make a bit of difference in the grand scheme of things to come.
Good to hear you weigh in Sano. You speak of dilution as if it's this horrible thing. Nothing could be further from the truth. It's a common necessity that companies need money to operate. It's a known known that the company started by raising cash through doing stock offerings. This is very common and how many companies start. That's how many of us got involved. The problem is that most companies that start this way never earn any money. Dilution has kept this company going, and it's dilution that has gotten us to where we are today. Which is currently in a pilot program or test as you like to call it with TransCanada on the keystone pipeline. These are the necessary steps to earnings, and it's dilution that has allowed us to get here. You may not like the path in which they took to get here, and I would probably agree with you on some things, but the point is we are here. Dilution has been and is fine up to a certain point, which is until we have earnings to pass the baton to. As we have just taken our first lease payment, it looks as if the baton is about to be passed.
I do understand and agree with some of your other criticisms about the expenses. I also believe the company is working on reducing those. There may be past employees to pay, but just like many companies ours has it's share of human resources issues. I would not call it a black hole. It's nothing that leasing another AOT wouldn't cover. Just 2 AOT's leased at $60,000 per month is = $1,440,000. And 4 leased AOT's = $2,880,000. And I think these are conservative numbers. Also, I see you made no mention of the whole up-stream potential. To me it looks like we just added an entire additional company's revenue potential to the business plan. Do we care to speculate how many AOT's wildcatter's and other E&P companies would use to help increase production? I'll tell you that each additional AOT is one more than we had just a short time ago when all we knew about was the Mid-Stream AOT.
In the words of the 10k, "STWA’s AOT is of interest to upstream producers. This group would benefit from our AOT technology by unlocking chokepoints from their field to the transmission line loading terminals due to viscosity constraints. In addition, this group would also benefit from their midstream transporters implementing our AOT 2.0 transmission-line series by its ability to increase the overall flow capacity of the pipelines transporting the product from the loading terminals to market."
As far as the semantics with regards to increasing flow capacity, as I understand it the Up-Stream AOT would help E&P companies increase flow capacity so that more oil gets to the Mid-Stream operators. You said, "We know the line is limited by upstream volumes." The AOT helps "by unlocking chokepoints from their field to the transmission line loading terminals due to viscosity constraints." It seems to me this sounds like it will help increase those volumes, and generally move more oil. More oil moved = increased profits. That's the bottom line.