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I thought NM's price held up quite well today. It outperformed the major indexes which were WAY down. It is also near a 52 week high and holding, with a huge apx 12% dividend!
Interesting. I thought NM was also posting earnings this week, but I guess not. Sometimes the news wires confuse NM with NMM. Capex rates took a nice jump up again on the laestt BDI rates, taking the BDI up 1% again.
In case no one has noticed (LOL) we seem to be in a medium term down turn correction in the markets (except for the dollar which is in rally mode). I bought what I think is some real cheap short term insurance for further temporary large moves against my long position in FRE. And they are still cheap as hell. I bought $1 Dec puts for FRE, at only .05 each. We were at 1.06 at one point just last week when the market was still higher than todays new (recent) low. What I can not figure out is why the $1 puts are still so cheap. Something to watch anyway.
Actually we held up pretty well today considering how bad the current market direction is going. We are much closer to a bottom here on COIN than many other stocks are right now. But to be honest we seem to be in a major market correction down trend, at least until mid November (that is my target for a market low and a rebound as options expire the third week of Nov, then maybe a good rally for 2 weeks, and then another run to test lows into the last 2 weeks of Dec. I expect to see a large volatile trading range trading lower for a while now compared to the last 6 months.
I am holding my stocks like this one, and I bought puts on some oil stocks last week which are already dropping (stocks dropping, puts rising) and I expect them to drop a lot lower based on oil, the dollar, and other market dynamics, which are more predictable than a sometimes news driven stock like COIN.
My idea being to be able to hold my tech / green longs like COIN for the long haul, and protect myself from any losses caused by following the broader market. If my plan works I sell the puts in 2 weeks for a large gain and buy more COIN if it has gone down or is still on sale at today's prices.
I think we still have COIN earnings coming up soon, and some will see the change in the book value that is up 1000% since the new issue!
This stock is selling now for twice the cash it has in the bank, and 1/3 of its recent high! Hell of deal. If you wait a week or 2 to buy you might get a lower price, but you risk news coming out and pushing it back over a dollar any time. Even it drops another 50% (which I seriously doubt) I am far less worried about the long term future of the stock than any one I hold right now. If you are new to the stock I would scale in with buys over the next 2-3 weeks in case it gets 10-20% lower on a few more bad days like today, but in six months I doubt we will ever be below $1 again.
That plus Mr. Market seems to want to track lower for a while now with a correction. I have bought some puts on other stuff to cover any market losses near term so I can stay long with stocks like this one. Once the current down trend (Markets) bottoms I will sell the puts and buy more longs like this one. I don't dare sell a stock like this one, as big news is not predictable like some market moves are. Just my current strategy.
But I will be watching for anymore fire sale prices here to buy!
The answer is yeas, the project size is equal to half of annual plant capacity. Total project size was 1.5 billion dollars. And it breaks APWR into the largest wind market in the world! Also of interest is that APWR owns part of the company that will own part of the wind energy farm.
I think a few are just risking taking some of their cash out to play other stocks that got hammered yesterday, and rose today. Risky as this stock could jump any day on unexpected news, but it could also drift lower for a while.
I am long, but I also bought some real cheap $1 Dec puts earlier this week (.05 each) to protect from any more blind side attacks like the last one.
I need to reread it after the market closes, but IIRC the order volume was equal to half the annual capacity, or close to it. May take a while to fill the order, but that is supper bullish for APWR, IMHO. I have moved my target price for 12-18 months up $20. Earlier this year they got a huge port & LNG pipeline deal that was twice previous annual sales IIRC (one order, 2 year contract?), that starts next year too. The stock has been very volatile, high beta to the market indexes, so wait for big dips like yesterday to buy, but I think it has a good long term trend higher.
So much for that negative wind article. Looks like hot air on today's news of huge project in Texas that APWR subsidiary will do a JV deal with for huge wind power farm using APWR wind turbines. APWR is already up nearly 20% today and climbing fast. Note that we were down about 10% yesterday, so I won't be surprised to see us hit a 30% up day for once here. That one deal looks like 50% of the plant annual capacity in one order!
"A-Power Energy Generation Systems Ltd. Designated to Supply Wind Turbines to a 600MW Wind Farm in West Texas
China-US Wind Farm JV Plan Calls for 240 Units of 2.5MW Turbines to be Purchased from A-Power
SHENYANG, China, Oct. 29 /PRNewswire-Asia-FirstCall/ -- A-Power Energy Generation Systems Ltd. (NASDAQ:APWR) ("A-Power" or the "Company"), a leading provider of distributed power generation ("DG") systems in China and a fast-growing manufacturer of wind turbines, announced today that the Company has been designated to supply wind turbines to a China-U.S. joint venture project ("JV Project") to develop a 600MW wind farm in West Texas.
At a joint press conference held today at 12 p.m. EDT, at the National Press Club of Washington, D.C., it was announced that Shenyang Power Group ("SPG"), the U.S. Renewable Energy Group ("US-REG") and Cielo Wind Power LP ("Cielo Wind"), signed a joint venture framework agreement ("JV Agreement") setting forth plans for developing the 600MW wind farm. The terms of the JV Agreement include the JV Project's plans to sign a definitive purchase agreement with A-Power related to the purchase of up to 240 units of 2.5MW wind turbines. The JV Agreement includes a delivery schedule starting in March 2010, subject to SPG securing third-party financing, among other conditions. A-Power currently has an annual production capacity for 1.1GW of wind turbines at its 320,000-square-foot facilities in Shenyang. A-Power is a shareholder of SPG.
The JV Project, which when established will be 49% owned by SPG, with the rest of the equity ownership held by US-REG and Cielo Wind jointly, is expected to be one of the largest wind farms in the United States. Upon completion, it is anticipated to generate enough electricity for 180,000 homes in America. The JV Project is expected to cost in total approximately $1.5 billion, a portion of which is designated for wind turbine purchases, and its establishment is subject to, among other things, further due diligence by the parties, the securing of financing from commercial banks in China, and other project development conditions.
"A-Power welcomes the opportunity of participating in this high-profile wind power project in the United States," said Mr. Jinxiang Lu, Chairman and CEO of A-Power and CEO of SPG. "As both a supplier to the JV Project and an equity-owner of SPG, A-Power will be able to export its wind turbines for the first time and reduce its exposure to the intrinsic risks associated with such a large-scale project. We like the tremendous opportunities in the United States, which is the world's largest wind power country. We are cognizant of the recent policy push by the Obama Administration in the renewable energy sector, and a stabilizing financing environment for renewable energy projects. And we are attracted to the track record of Cielo Wind, the largest privately held wind power project development company in the Southwest United States, with a 16% market share for wind power installation in Texas. In this JV Project, and the sales we expect to make to the joint venture, all of A-Power's previous investments -- in production scale, in foreign technology licenses, and in alliance with other power plant service companies -- are expected to come to fruition, and we look forward to entering into a sales agreement with the JV Project and moving ahead with the production schedule as set forth in today's JV Agreement."
Heads up people! We just spiked the koolaid with and article in Power Engineering magazine! And we are back up green this morning.
"Power Engineering Spotlights Carbon Sciences' Technology as Alternative to Carbon Capture and Sequestration (CCS)
SANTA BARBARA, CA -- (Marketwire) -- 10/29/09 -- Carbon Sciences Inc. (OTCBB: CABN) (CABN), the developer of a breakthrough technology to recycle carbon dioxide (CO2) emissions into gasoline and other portable fuels, was featured in the Headline News section of the October 27 edition of the Power Engineering E-Newsletter: http://tr.im/Degb. Subscribed to by over 45,000 power generation professionals, this weekly communication covers the latest trends and technological advancements in the industry.
The article, titled "New technology recycles CO2 into fuel," points out that "cutting carbon emissions is a hot topic of discussion, with the U.S.
Environmental Protection Agency debating how they should handle power plant emission levels and the government is wondering the same."
Sharryn Harvey, author of the article, and the online editor for the magazine, examines Carbon Capture and Recycling (CCR) technology as an efficient way to mitigate and recycle carbon emissions, as well as a viable alternative to controversial Carbon Capture and Sequestration (CCS). Harvey poses the question, "Could carbon capture and recycling replace CCS or is it just an additional tool in the fight against emissions?"
Byron Elton, CEO of Carbon Sciences, points out that his company's carbon recycling technology has the potential to fundamentally change the game, "If we are successful in bringing this to the marketplace, it is going to be the most powerful, sustainable technology available in the world."
"There are many innovative solutions being developed to address our energy and environmental concerns, but many of them won't be commercially ready for decades and are fraught with endless problems," says Elton. "Carbon Sciences CO2-to-Fuel technology is an efficient, low-energy process, creating additional revenue streams for the carbon emitting facilities who may choose to use the gasoline they create on-site or sell it. Best of all, it's a homegrown solution that allows us to reduce our dependency on petro-dictatorships."
Power Engineering Magazine (www.power-eng.com) was established in 1896 and provides power generation industry professionals with the critical information needed to remain efficient and competitive in today's market.
For three years in a row, Power Engineering has been named the most read and useful magazine in the power industry.
The magazine was established in 1896 and serves electric utilities, independent power producers, co-generators and small power producers, power plant designers and other power generation industry professionals. It includes the latest news and trends, business developments, information on operation and maintenance technologies, project announcements, market analysis and technological advances.
About Carbon Sciences Inc.
Carbon Sciences Inc. is developing a breakthrough technology to recycle carbon dioxide (CO2) emissions into the basic fuel building blocks required to produce gasoline, diesel fuel, jet fuel and other fuels. Innovating at the intersection of chemical engineering and bio-engineering disciplines, we are developing a highly scalable biocatalytic process to meet the fuel needs of the world. Our solution to energy and climate challenges is to enable a sustainable world of fuel consumption and climate stability by recycling CO2 into fuel. For example, Carbon Sciences' breakthrough technology can be used to recycle CO2 emitted from fossil fuel power plants into gasoline to run cars and jet fuel to fly aircraft. To learn more about the Company, please visit our website at http://www.carbonsciences.com
Safe Harbor Statement
Matters discussed in this press release contain statements that look forward within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such statements that look forward. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the statements that look forward contained herein, and while expected, there is no guarantee that we will attain the aforementioned anticipated developmental milestones. These statements that look forward are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: the impact of economic, competitive and other factors affecting the Company and its operations, markets, product, and distributor performance, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors detailed in reports filed by the Company.
Media Relations Contact:
Christina Brozek
Beckerman Public Relations
201.465.8002
Email Contact"
Good news:
Converted Organics Reports Sales Results for Third Quarter Ended September 30, 2009
BY CapIQ
— 12:03 PM ET 10/28/2009
Converted Organics Inc. (COIN
Announced that third quarter 2009 sales of organic fertilizer products from the company's Gonzales, California manufacturing facility increased approximately 64% over sales from the quarter ending September 30, 2008. The company also reported a positive operating margin from its Gonzales plant of approximately 11% of sales for the quarter ended September 30, 2009, as compared to a negative operating margin of 45% of sales for the same quarter in 2008. The third quarter increase in organic fertilizer sales from its Gonzales plant over the same period in 2008 continues the trajectory of year-over-year quarterly sales growth begun by Gonzales in the second quarter of 2009.
This stock is getting way too cheap. Didn't they just float a bunch of new issue stock in 2 lots, last one at $8/share?
I will be curious to see what the new report shows for cash on hand and book value, oh and of course earnings!
In case no one is checking the news:
Paragon Shipping Inc. Schedules Third Quarter 2009 Earnings Release and Conference Call
ATHENS, Greece, October 27 /PRNewswire-FirstCall/ -- Paragon Shipping Inc. (NASDAQ:PRGN), a global shipping transportation company specializing in dry bulk cargoes, today announced that its financial results for the third quarter ended September 30, 2009 are scheduled to be released after the close of U.S. financial markets on Tuesday, November 10, 2009.
The Company's management will conduct a conference call and simultaneous Internet webcast to review these results at 9:00 A.M. Eastern Time on Wednesday, November 11, 2009.
Conference Call details:
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: +1-866-288-9315 (from the US), +44(0)800-3769-250 (from the UK), or +30-211-180-2000 (all other callers). The access code for the call is "909".
A telephonic replay of the conference call will be available for 90 days by dialling +1-866-288-9317 (from the US) or + 44(0)800-901-2906 (from the UK) or +30-210-94-60-929 (all other callers). The access code for the replay is "099#".
Slides and audio webcast:
There will also be a live webcast of the conference call and accompanying slide presentation on the Paragon Shipping website (http://www.paragonship.com/). Please allow 15 minutes prior to the call to visit the site and download and install any necessary audio software. The webcast will be archived on this site for one year.
NMM already announced the dividend increase last night, up 1.3%.
It is more than just a conference call, earnings are to be announced prior to the CC:
"PIRAEUS, GREECE--(Marketwire - October 26, 2009) - Navios Maritime Partners L.P. ("Navios Partners") (NYSE: NMM), an owner and operator of Capesize and Panamax vessels, announced today that it will host a conference call on Thursday October 29, 2009 at 08:00A.M. EDT, where Navios Partners' senior management will discuss the results of the third quarter ended September 30, 2009. The Company will announce earnings for the third quarter ended September 30, 2009 prior to the conference call."
Please tell me more about the blank check company please. I heard mention of it, but don't know any details on that part.
And yes, NM is also overlooked and under priced, as it collects apx 60% of the NMM dividends as the GP. NM is also diversified, into the port business and natural gas pipeline business in South America (IIRC), and it has a reasonable dividend too. I own both.
So, I have not looked completely under the hood here. No time to read a million posts, so based on your last post, what have I missed on this one?
Yes, the news came out on market wire yesterday. It showed up in my Fidelity.com news browser. 5:05 PM yesterday announcement.
http://www.smallcapwatch.com/pressRelease.asp?ID=102548
http://www.marketwire.com/press-release/Navios-Maritime-Partners-LP-NYSE-NMM-1065714.html
Well I must admit I am little bit concerned about the BDI and market in general at this moment, but this is one of those little known, great (HUGE) dividend stocks that held its value while some of its competitors share prices dropped 95-98% in recent crash.
But yea, this is definitely a buy and hold for retirement dividend stock for sure.
It is not the usual dry bulk shipper stock, it is a limited partnership (with NM as GP) that pays out something like 60% (IIRC) of average earnings as a dividend.
It is way too quite in this board!
EK reports earnings before the open tomorrow, Thursday, Oct 29, 2009.
Let's hope it is good.
Earnings report is tomorrow for NMM and NM. BDI has been essencially flat the last 2 days.
http://www.exchange.imarex.com/bdi-futures-closing-prices/category1048.html
Even a real bad market slide, NMM seems to hold up real well. If it hits about $11.50 I will add more if the recent market decline drags us any lower. I am long on both, and holding long.
Based on the recent market direction and how fast stocks are getting cheap, and the fact this one has held so solid for so long at .082 or so and the higher volume the last 4-8 weeks, tells me someone has a floor at .08 to .082, so in spite of the scary market direction last 5 days, I am holding, and as i said before I doubled my holdings here last week.
CYTR acted like it bottomed today, but RXII (CYTR owns 36% of it) took another hit today, and acts like it is heading to $1 (it was near $10 not so long ago, gasp!), so hard to judge if it is a buy yet . If the markets continues this sell off (as the dollar rallies) stocks will go lower, but we could rally any minute. If SPX drops below 1013-1119 it will time to head for cover before the sky falls!
I am currently long CYTR and holding. Not planning to sell this cheap.
Actually considering the heavy market sell off (dollar bottomed and stocks and commodities are in sell off profit taking mode) since late last week and the high beta of COIN, as well as the considerable increase in float that beefed up the cash and book value, it is holding up quite well IMHO.
Only question now is will the overall market bounce back up, or return to the bear market. SPX needs to hold the 1013 to 1019 area or else it is time to be on the sidelines, or hold puts, short, instead of being long.
I don't think the COIN has any serious shorting going on. It is just people panicked about the current market direction selling nearly everything. We are sitting right on the last TA support before the last major bear/bull battle area of 1019 (to 1013).
Long story short, I am holding my stocks including COIN and COINU, and late last week I bought some puts to CMA for this expected downturn to limit my losses.
One thing is for sure, new buying opportunities are showing up in many places.
Let's hope the bulls can hold the line against further declines.
Nice. Thanks for the post. I had not heard that news. I added to my shares early October when it was down some. Glad to see one of my BDI shipping stocks holding up. I was concerned the dividend might drop, I guess that concern is off the table now. Kinda raises the ante for the other BDI stocks! Nice that they announced it pre-earnings!
Tempts me to sell my other junk and just buy more NMM stock.
I found the patent application by the OriginOil inventor(s):
http://appft1.uspto.gov/netacgi/nph-Parser?Sect1=PTO2&Sect2=HITOFF&u=%2Fnetahtml%2FPTO%2Fsearch-adv.html&r=1&p=1&f=G&l=50&d=PG01&S1=%28Riggs.IN.+AND+Eckelberry%29&OS=in/Riggs+and+Eckelberry&RS=%28IN/Riggs+AND+Eckelberry%29
My back ground is chemical, environmental and biomedical engineering, and patents, and some patents of my own, so if anyone has questions regarding the patent application I will try and answer it.
Well so much for the volume question, some one just spiked the juice here. My screen says it just moved up 33%! After zero volume most of the day.
I am wondering why there is zero volume here today. Was trading halted?
Just curious? As part of due diligence don't you want to know who the other players are, how big their bets are on Algae to fuel, etc? My post was from a news item that had over half a dozen other players, and size of their investments on the move to make algae to oil fuel a reality. How is that not relevant here?
Heads up, we just broke out, back up through upper resistance at .16, to .168, in a down market!!!!!
I was just looking at the COIN chart, and it seems we are at or very near an all time low right this minute. With the recent new shares issued bumping the book value up from .04 to .44/share, and the financials looking better than ever, this looks like a great opportunity to add, or for new longs to jump in, or start jumping in. I will be surprized if the price goes much lower. This was a $10 stock early in 2008. And has been back up over $2 recently.
I believe this company has a much better up side potential than stocks like POT (traditional inorganic fertilizer plays). COIN has an ex EPA official on the BOD (last time I checked anyway), Their losses as they switch from a start up to a company with real sales should continue to fall, and with all the shares issued, the next quarter losses per share will be much smaller simply due to dilution. Some of the cash they just raised will go to pay down debt and reduce interest expenses, which should help profits. This all adds up to a great buying opportunity IMHO. I already doubled my long position recently when the new COINU issue came out by buying some of the COINU which has $1.34 warrants attached. I am long on both now, and will hold the COINU until they split to COIN and COINW in the very near future.
Oh, and if you take out the $1.34 warrarnts in the new issue (COINW part of COINU) that leaves the new issue which sold for $1.06 issue price, at a price that is about 20% higher than today's COIN price. If we don't get back to $1.34 someday that is, the warrants would be worthless, but the warrants seem to be currently valued at about .34, so the COINU holders are betting that COIN will get back up over $1.34 pretty soon, probably back up $2, soon. Last I checked COIN was sitting at around .84 with this current market correction taking out the week hands.
It is not very often, especially in the current market, where you can buy a new green tech stock with this much promise, this cheap. Right now it is at about 2x cash on hand book value!
I read that EK posts earnings this week, some time on Thursday!
These are the guys that are going to leave BEHL in the dust.
http://finance.paidcontent.org/freelunch/action/linkout?URL=http%3A%2F%2Fwww.cleantech.com%2Fnews%2F4648%2Fdow-algenol-build-pilot-algae-based&Title=Dow%2C+Algenol+to+build+pilot+algae-based+biorefinery
I don't BEHL's name anywhere on this, and BEHL has not even rasied 1 million dollars in funding yet:
"South San Francisco, Calif.-based Solazyme has raised $45.4 million, the company confirmed to the Cleantech Group today.
Solazyme had previously raised about $25 million in venture capital, debt and federal grants for its process using fermentation to speed the growth of algae in the dark. Most recently, Solazyme said it raised $5 million in December (see Investors eat up algae and other fuels).
The company didn't release details of the funding, but company Chief Executive Jonathan Wolfson has said he expects Solazyme's diesel to be market-ready by 2010 or 2012.
Solazyme is the only company so far to get approval from the American Society for Testing and Materials for its algae-based diesel, which the company is using to power an SUV at its headquarters, but Wolfson has said it will take a couple years to build a plant capable of producing about 100 million gallons per year.
Solazyme and Naples, Fla.-based Algenol Biofuels are two of the algae based fuel companies specifically touting scalability (see Turning algae into ethanol, and gold).
The investment in Solazyme follows a flurry of announcements from rival algae companies. As predicted in May by Cleantech Group Senior Research Director Brian Fan, algae companies are aggressively raising new rounds to scale their products to keep up with Sapphire Energy, which in May raised $50 million—the single largest round to date by an algae company (see Cleantech investments hit a record high and Governments dole out cash for cleantech).
In June, Alameda, Calif.-based Aurora Biofuels said it raised $20 million, and, in May, GreenFuel Technologies said it closed a Series B round of $13.9 million for technology development and scaling (see Aurora Biofuels lands $20M in Series B).
Other companies in the field include LiveFuels, Aquaflow Bionomic, PetroAlgae, among others. "
and this:
"Midland, Mich.-based Dow Chemical Company (NYSE:DOW) and Algenol Biofuels said today they are teaming up to build a pilot, algae-based integrated biorefinery to convert carbon dioxide into ethanol.
The facility, to be located at Dow’s Freeport, Texas site, is expected to incorporate Algenol’s technology. The company said it has a seawater-based way to inexpensively generate up to a billion gallons of algal ethanol per year in bioreactors (see Turning algae into ethanol, and gold).
Financial details of the partnership were not disclosed, but Algenol said it’s applied for a grant for an unspecified amount from the U.S. Department of Energy to help support the plant. Upon approval, Dow and other collaborators plan to work with Algenol to prove the technology can be achieved on a commercial scale. Other collaborators include National Renewable Energy Laboratory, the Georgia Institute of Technology and Membrane Technology & Research.
Dow said it plans to develop the advanced materials and specialty films for the photobioreactor system. Dow is also expected to provide the technology and expertise related to water treatment solutions.
Dow said it plans to provide Algenol with access to a CO2 source for the biorefinery from a nearby Dow manufacturing facility. The CO2 is expected to serve as the carbon source for the ethanol produced. The result, according to a news release, would be a CO2 capture process that converts industrially-derived CO2 into more sustainable fuels and chemicals.
One of Algenol’s competitors, South San Francisco, Calif.-based Solazyme, which has a process using fermentation to speed the growth of algae in the dark, said it plans to build a plant capable of producing about 100 million gallons of algae-based diesel per year (see Solazyme joins algae elite with additional $45M)" from:
http://finance.paidcontent.org/freelunch/action/linkout?URL=http%3A%2F%2Fwww.cleantech.com%2Fnews%2F4648%2Fdow-algenol-build-pilot-algae-based&Title=Dow%2C+Algenol+to+build+pilot+algae-based+biorefinery
I have owned stocks in the last 24 years that were bought out where the old shareholders got screwed, IMHO, with the takeover price, so I am very careful not to assume a take over will give the old stock holders a fair shake. Too many ways to skin the cat, and the big guys are pros at it. Last one was back in March when the Arabs saved a Canadian DOW Chemical like company just as the stock was starting to rebound from the grave on the latest quarterly, the Arabs bought it up before the stock could get back where it had been 6 months earlier. They bought it for 10% of what it had been worth based on stock price middle of last year, and about 20% of what it was worth now versus what it was selling for in march this year. It took a huge one time inventory hit on crude oil in storage in the 4th quarter last year, plus the temp drop in sales had investors running for the door, so the stock price dropped about 95%. Long story short, we could get screwed if the right guys move in on us at the right time, unless we support the stock price ourselves. Just one of the hazards of being a small time investor.
Last I read that one was dead. I think some of the others he listed are dead now too, as they don't mention them anymore.
You might find it interested to reading this.
http://crankyflier.com/2009/09/30/why-algae-wont-fly-anytime-soon/
" But will we actually be seeing algae-powered airplanes in the near future? Probably not. I spoke with OriginOil President and CEO Riggs Eckelberry about the state of algae oil product, and it was a really interesting discussion.
The use of algae oil as fuel is not just hype. It has been proven that it can be done, and according to Riggs, it has a “fairly compact footprint.” Part of the issue until now has been figuring out the best way to extract the oil.
In Riggs’ words, in the current process, “they literally cook the water out. It takes a huge amount of energy to do that. Eventually it turns into a 10% water content which is an extremely dry meal. Then they combine it with hexane to extract the oil.”
So it takes a lot of energy and the use of chemicals to get anything done, and that’s not exactly a sustainable process. OriginOil’s process is different in that it separates the lipids from the biomass and then the algae sinks to the bottom while the oil sits on top of the water. You can see a time-lapsed video of this happening on their website.
Origin Oil Algae Process
They don’t need any chemicals or energy to do this. All they need is a ton of water, which presents problems of its own. At least the water can be reused. After the process is complete, the water simply has to be refiltered and it can be used again and again with limited loss in the process. They’ve also found that you can harvest a certain amount out of a batch every day and it grows back by the next day. Right now, they can pull out about 12.5% per day.
So, now that the processes are improving, can we use this on airplanes? I doubt it. Riggs gave me some numbers to put things in perspective. Let’s say you have 1 acre. On that acre, you probably will have about 40% of it as actual tank capacity for growing. In that environment, you will turn out about 63,000 gallons per year for that acre. How many airplanes can that power?
It’ll keep a 747 in the air for about 18 hours. That’s it.
So at this point, you need a LOT of land to power a fleet of aircraft. It’s just not feasible right now. But there are plenty of other uses that are good for algae and that can help take some demand out for petroleum. Things like specialty chemicals and health foods can work very well.
Riggs was certainly up front about this. “It’s not a very pretty picture. The best the industry has reported, and some are skeptical, is $8 per gallon of oil and some people think it’s more like $12 or $14. It’s still very, very high.”
There is some good news, however. Costs can come down significantly in environments where the right conditions already exist: wastewater treatment plants. Think about it – a ton of water flows through wastewater plants every day, and they can grow algae while that’s going on. Then the cost is very low for production, but again, the quantities won’t power the airline industry.
In Riggs’ mind, we’re probably about 5 years out from having a sustainable algae oil industry, but he’s confident we’ll get there. In order to get algae to power airplanes on a large scale, there’s a lot left to do."
Note that this outfit is already moving into phase 2 of a DOE lab research partnership. And they seem to be in the lead on the energy balance analysis (in partnership with the DOE) and working the frontier areas of solving and patenting the new tech needed to solve the excessive energy input issues and problems like how to extract the oil economically.
I am long here, and added at 1.36. I found this interesting in the latest 8K SEC report.
"In exchange for Treasury’s funding commitment, we issued to Treasury, as an initial commitment fee: (1) one million shares of senior preferred stock and (2) a warrant to purchase shares of our common stock equal to 79.9% of the total number of shares of our common stock outstanding on a fully diluted basis on the date of exercise. Because it holds this warrant, Treasury is deemed to be the beneficial owner of 79.9% of the outstanding shares of our common stock."
I still believe that if the Treasury ever wants to get out of the mortgage business (Which I believe is the case, long term), it will want to prop up the common stock price some day by exersizing those warrants and selling that 79.9% to Wall street someday, for a decent price. That does not predict a zero value for the current common stock. Oh, I also bought some REAL cheap 1.00 December puts for .05 Friday that they are nearly giving away (considering the stock is worth 0, LOL) as insurance for my long, and just in case some more yahoos come out and tell every one to sell FRE.
No brainer as Hedrin is and has been used overseas for years now. Just a matter of time. I am excited about the news of the fire sale possible takeover target in the last SEC doc, that would add to the pipeline for pennies on the dollar (stock swap for their debt?). If they do that and if they want to issue more shares to raise money they will use MMs and PR to spike the price a good bit before issuing new shares as they will want a higher price for new shares, IMHO. The stock price has already gotten real solid in the .08-.09 range. I doubled my holdings at .09 the other day, a lot more than the .02 I paid back in March. Volume has been up a good bit too as it held the .08 to .09 price range. IIRC this $1 stock 18 months ago.
Wow, there are some SIRIous bets out there for a reverse split by January 09! Max pain for January 2010 options is $1 and for march 2010 it is $3!!!!, but there are some January bets out there as far as $30 betting on a RS! Some real big bets on a reverse split. But most of the options are created and sold by the big players, so they are betting against the RS, or not?
Based on recent market action, I decided to buy some insurance for my long positions like EK, and was amazed that I could buy a $3 December EK put for only .05/share late on Friday as the market and EK prices went south. Does not seem like the MMs think the stock will go that low this year, another good sign of a bottom at this price. Max pain for EK december is also $4, so I am holding my longs. Once again people this was a DOW 30 stock once, and will rise again IMHO. And their recent success at raising cash was good sign that big money people think it will make a comeback too.