Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
More confirmation of strong Potash demand (UPCO needs to get product out of the ground and to market ASAP!):
Strong Potash Demand Makes K+S Confident About 2011
By Hilde Messer and Heide Oberhauser-Aslan
Published November 11, 2010
| Dow Jones Newswires
Print Email Share Comments (0) Text Size FRANKFURT -(Dow Jones)- Specialty and standard fertilizers supplier K+S AG (SDF.XE) said Thursday that it is lifting its 2010 sales guidance to the upper end of the range, adding that it expects a moderate rise in sales and a significant rise in operating and net profit in 2011 on the back of strong potash demand.
"The development in our most important business segments, Potash and Magnesium Products and Salt, in the third quarter was better than expected," Chief Executive Norbert Steiner said in a statement.
The Kassel-based company now expects sales at between EUR4.8 billion and EUR5 billion from a previous forecast of between EUR4.6 billion and EUR5 billion. In 2009, sales reached EUR3.6 billion. It added it expects earnings per share in 2010 to be between EUR1.95 and EUR2.10 compared with EUR0.56 in 2009.
The group confirmed its full-year outlook for operating earnings of between EUR630 million and EUR670 million, which it increased only last week.
It expects sales volumes in the potash and magnesium products segment to come in between 6.7 million and 6.9 million tons in 2010, and of just over 7 million tons for 2011. For 2011, it expects average prices to increase moderately.
YOU MIGHT ALSO BE
INTERESTED IN
NBA Star Defaults on $1.5M Mortgage Hoarders: Buried in Debt Socialism: Rearing its Ugly Head Again U.S. to New Jersey: You Owe Us $270M 10 Most Overpriced Products You Should Avoid K+S now expects global potash sales volumes to reach between 52 million and 53 million in 2010, and 55 million to 60 million tons in 2011. Agricultural consumption sharply increased, buoyed by higher prices for agricultural goods--and in the first nine months of the year neared its normal level, the company said. In 2009, farmers used significantly less potash due to a sharp drop in agricultural prices.
The average prices in the potash and magnesium products business receded in the third-quarter, as announced by the company. The average price in the third-quarter world-wide was EUR265.8 a ton, after EUR268.7 a ton in the April to June period. In the fourth quarter, the company expects prices to be stable.
In the potash and magnesium products business segment, demand for potash fertilizers normalized. Sales in the quarter rose 23% to EUR417.8 million, while operating earnings increased 47% to EUR79 million. The company added it had a high capacity utilization rate.
In the salt operations, last year's acquisition of U.S. salt company Morton Salt significantly buoyed sales and earnings. Sales soared to EUR305.2 million, compared to EUR123.2 million a year earlier. Operating earnings for the July to September period rose to EUR31.8 million, after EUR13.5 million a year before. In addition to the positive consolidation effect of Morton Salt, K+S benefited from an early stocking-up business for de-icing salt.
The company expects sales in the salt business to around to 22 million tons this year.
Third-quarter net profit soared to EUR76.8 million from EUR3.7 million a year earlier and sales increased 52% to EUR1.06 billion.
Not sure how familiar you are with agriculture and the importance of Potash. I grew up on a farm. Potash is a fertilizer staple, and has become more 'sexy' of late because of high crop prices, thus more acres of land planted with corn and soybeans, thus more demand for fertilizers. China is also a big factor in the demand equation.
The other thing is that some farmers fertilize in the Fall and others in the Spring. As such, most orders will be placed in last half of the calendar year. I live in the Midwest and hear ag news every day. Many reports of fertilizer shortages, high demand and rising prices.
This will only benefit UPCO in the near-term if they have already gotten Potash out of the ground. Otherwise, as an investment, they will be more of an asset play if news is good on Potash concentrations but won't make a lot of revenue until next Fall when fertilizer demand pops again and they are producing.
All IMO..GLTA,
Murocman
Company has HUD approval, not HDE yet.
From 21 Jul 8-K:
During Phase III-level multi-center studies, HUD marketing of PermaDerm™ can begin. Marketing of PermaDerm™ under HUD designation will facilitate clinical experience with the product, and expedite full market penetration after completion of a PMA or PDP. The HUD designation has already been received and, upon completion of the Lonza Transaction, will be transferred to us as part of a licensing agreement with the University of Cincinnati, which will allow immediate manufacture and sale of PermaDerm™ for treatment of catastrophic burns. Subsequent to the transfer of the HUD designation, a Humanitarian Device Exemption (HDE) application must be submitted to specify the protocol for clinical use of the HUD. We have commenced preparation of the HDE application and we expect to file it with the FDA by the end of this year. FDA is permitted 6 months for review of HDE applications. After approval of the HDE, sales of the HUD can begin. HDEs are reviewed as PMAs that are not required to demonstrate evidence of efficacy. Each hospital that uses the HUD must activate study protocol (which must be reviewed and approved by a local Institutional Review Board (IRB)) to monitor risks and possible adverse reactions. We will develop a standard study protocol, and act as liaison to activate the protocol at each hospital.
Time will tell. Certainly the value of the prospects is enhanced if the Chinese clamp down on exports even more. It would be better is there were published assays showing significant REE deposits for Eden. That would help more fairly value the company and give them some leverage in negotiating with potential suitors IMO.
GLTU,
Murocman
Assay Data for Eden Property? I seem to remember reading in one of the company's PRs or maybe one of their corporate presentations that they were expecting assay data from their Summer exploration program to be avialable this month.
Does that ring a bell with anyone?
GLTA,
Murocman
Why so much expectation of a price pop on the 10-K? I don't see there being anything new in the revenue numbers that were issued in the8-K unless the put out forward looking guidance.
There was an interview with the CEO awhile back where he put the price at about $24K per ton. If you search the company PR's or google, it should pop up.
GLTU,
Murocman
Any thoughts on how far this runs on the first leg up before pelling back? I'm thinking we may test the $.027-0.03 area before pulling back to the $0.02 area.
I personally think it may have a touch time getting above $0.03 without some kind of news or update from the company.
I guess we'll see how it all plays out tomorrow!
GLTA,
Murocman
Etrade shows close of $0.0115 on 2,162,331 shares for Monday, 30 Aug, 2010.
Murocman
Please expound upon how BUGS will benefit from a Hurricane? Looks to me like they divested their cleanup business.
GLTU,
Murocman
Found this while attempting to so some DD on sales:
Despite Growth, New Leaf Cuts Staff
Posted: 8/9/2010 12:30 PM 0 Comments | Email
Tagged Companies: sipp | New Leaf Beverages/Iceland Spring
Related NewsNew Leaf cuts staff; Hansen's ...
Sambazon: new campaign, BevNET...
Schnell moves to Teawolf; BevN...
Vitaminwater Lawsuit Proceeds;...
XYIENCE Announces New VP of Ea...
Free Email News Alerts
Free Bev Spectrum Subscription
ADVERTISEMENT
Sales up, but share price is always a concern.
By Jeffrey Klineman
New Leaf Tea fired nearly 1/3 of its employees today as the company attempts to reduce expenses even as it experiences significant sales growth.
The firings are part of a re-staged sales effort to divert cash and other resources into five key markets, according to COO Bill Sipper. While New Leaf will not be pulling out of any states, the workforce reduction will allow the company to focus on slotting fees and promotions within areas in which it has the strongest potential to deepen its consumer base, according to Sipper.
“Our volume is increasing at nice levels and we’re definitely outpacing the category and our competition,” Sipper said. “But our overhead was increasing at higher levels than we would have liked.”
Recent figures from Symphony/IRI indicate rapid growth for New Leaf in major channels – it was up nearly 90 percent over the previous 52 weeks, to $2.1 million – a number that does not take into account many of the up-and-down-the-street sales taking place in cities like New York, where New Leaf has a strong DSD system in place.
But despite the growth, the balance sheet is a big concern for New Leaf, which is publicly traded. If expenses can be cut and sales boosted, that can help the company’s share price.
“At some point you have to look at it from a shareholder value perspective and you have to make some difficult decisions,” Sipper said. “You certainly have more latitude in a private company, but we have a fiduciary responsibility to the shareholders here.”
Sipper took on the job of COO in February; he said that nearly all of the employees who were fired were part of a sales force that has expanded in the past year and that the company would likely look to hire in its key regions on the east and west coasts.
“This is just an attempt to gain more focus,” Sipper said. “We’re here for the long haul and we’ve got a lot of great things going on.”
Source: BevNET.com Staff
Don't forget that we will be seeing a 10Q tomorrow or Monday, which should have some tidbits in it about equipment sales and may have some more details on the relationship with COV.
Murocman
Did not listen....read the transcript on Seeking Alpha. I think the downdraft was due to the fact that not contract information was announced other than the comapany they did have off-take contracts in place for their product, but were not diclsoing who or how much they were worth due to agreements with the purchasers.
I think there was also disappointment becasue they basically said the best they can do at Geismar is break even unless they have the $1 per gallon subsidy, and that they built the plant assuming that would be in effect.
I know these guys get a bad rap as being engineers and not businessmen, but I'm and engineer by training and that just seems like a very naive and bad thing to base your business model on to me. I'm really somewhat surprised Tyson would invest in that kind of plan. The fact that they did tells me there were either suckered or are thinking longer term/larger economies of scale in recoupling their investment. I hope it's the latter!
The other thing that does hearten me is that insiders continue to buy shares, and very recently. You don't do that unless you think they will pay off.
Given all that, I intend to ride this out for a bit and add a few more shares. I think once they get things going by the end of Q3, that will help the sahre price, even if they aen't necessarily making money.
GLTU,
Murocman
Looking at some potential plays for "Bonnie"....FUEL, MTRX, GV, DPDW.OB, IPII.OB. None seem to have very much liquidity so am watching for now.
Anybody has any other good candidates?
GLTA,
Murocman
Any chance this gets a bump heading into the weekend if it looks like there will be a TS or Hurricane in the GOM by Monday?
TIA,
Murocman
Don't forget that Covidien reports earnings on the 29th and Cardinal Health reports on 5 August.
These could be catalysts for news based on previous speculation of our partners.
GLTA,
Murocman
Thanks Ken...will keep an eye out.
Murocman
Ken,
Please elaborate a bit...You're saying it could crash?
Thanks!
Murocman
Disagree with your statement that the $1 credit is key for this to succeed. First, nobody in their right mind (including Tyson) would enter into a JV in a new industry that depending on an 'iffy', temporary government tax credit to be viable. Second, I point to the analysis below courtesy of Valdostavetteguy on Yahoo that says this JV will be profitable even without the tax credit (don't get me wrong...it will be nice, but not necessary and the company has said so in their last conference call):
I've updated my business model to include the latest economic factors known. Geismar qualifies for a 1.7 multiplier under RFS2 and the way it comes into play is a game changer if the $1 tax credit is not continued. Remember, the RFS2 is a mandate by the EPA on diesel fuel producers to either buy a percentage of green diesel or buy the equivalent RINs themselves from the biodiesel/renewable diesel producers (like SYNM). Also remember that the RFS1 is why you see the sticker "This pump contains up to 10% ethanol" on your local gas pumps. RFS1 went into effect in 2007 and RFS2 will do for the biodiesel market what RFS1 did for the ethanol market. Each diesel producer's (Shell, Exxon, BP, etc) mandated allotment will be determined by how much fossil diesel fuel they produce or import for sale into the US diesel market.
Management has told us in past conference calls that it takes 7.33 pounds of waste fats and greases to make a pound of renewable diesel fuel. Times that by the going rate of .25 cents per pound for the feedstock (from Friday's article) and add 80 cents for transportation and operating expenses (from the company's Investor Presentation) and you can see it will cost about $2.63 to make each gallon of synthetic diesel fuel at Geismar. That is $1.00 to $1.50 per gallon cheaper than the Biodiesel industry can make soy-based biodiesel for. Biodiesel currently sells for $3.50 per gallon, and WITH the $1 tax credit, the regular biodiesel industry makes around 50 cents per gallon profit. SYNM will clearly have a cost advantage by developing a process so superior it can utilize the lowest (cheapest) forms of feedstock). That's 87 cents per gallon profit for SYNM just in manufacture and delivery of the fuel. But that's in a perfect world and we know we don't live in one so I'm only counting on 25 cents per gallon profit from this stage.
Now add the profit they will get from selling the RINs as mandated by RFS2. Ethanol companies have been getting fat since this was enacted in 2007. In my opinion, this is our chance to join that group (but on the diesel side).
Even at today's price of 50 cents per RIN, times that by the 1.7 multiplier SYNM gets per RIN (because their fuel contains 170% more energy than ethanol) and that's another 85 cents per gallon profit. As they article states, management expect the RIN price to keep climbing if the $1 per gallon tax credit doesn't pass.
But RIN pricing won't stay at 50 cents. It will drop to a forecasted level of around 25 cents per RIN if the $1 tax credit passes or climb to 80-85 cents per RIN if it doesn't pass so I adjusted my SYNM profit model to account for both scenarios:
If the $1 per gallon tax credit passes, SYNM will get the $1 per gallon tax credit plus the lower RIN value of 25 cents times the 1.7 multiplier or 42 cents per gallon. So with me being conservative, that's .25 cents profit from manufacture, plus $1.00 plus .42 or $1.67 per gallon profit.
Now here's where it gets interesting. If the $1 per gallon tax credit it doesn't pass, SYNM's economics will look something like this: 25 cents profit from manufacture plus 80 cents per RIN times the 1.7 multiplier or $1.36 or $1.61 per gallon profit. The difference profit-wise between getting or not getting the $1 tax credit is really only about 6 pennies per gallon.
Arguments could be made that we are better off without the $1 tax credit because we wouldn't be subject to Congress's whims every year and less biodiesel competition. But it seems the market judges us as a regular soy-based biodiesel company for the moment, with our fortunes determined by the fate of the $1 tax credit.
Still, $1.61 per gallon profit for SYNM is huge. Times that by their half of 60 million gallons per year and that's $48.3M profit for SYNM. Add another $3.5 - $4M in profit (again very conservative) from their half of 15 million GPY of synthetic LNG and Naptha, and you have $51.8M in profits. Subtract $2M per year in SYNM overhead not covered by sales of engineering services and another $1M in interest expenses from SYNM's half of the $100M Go-Zone loan currently set at 2.19% per year for 5 years (interest swap) and we're at $48.8M per year in profit. Divide by 80M shares and that's 61 cents per share. Times that by a conservative P/E of 20 and that's a stock price of $12 dollars per share for only ONE plant.
By the way, if the biodiesel tax credit passes, SYNM would gain another $3.25M per year in the 50 cent per gallon tax credit it would receive for its half of 15M gallons of LNG and Naptha.
The two other short-term high value items SYNM has going for it is the $300M in NOLs and the fact that Tyson/SYNM have already said they plan to build 3-4 plants this size as Tyson generates that much waste, fats and greases (billions of pounds per year) to fuel them. As you can see, an argument of $50+ per share in 5 years is certainly viable.
Constructive criticism welcomed.
Disclosure: Unlike others on this board, I don't claim to have a crystal ball. These are my figures and I'm sure they differ from yours. As I've done before, I just threw them out there for info only in hopes it may help others.
Peace.
Vetteguy :)
I find this analysis to be conservative and reasonable. I think this company will be a goldmine for those who invest now and hold-on for 2-3 years. They are the 'Cisco' of the alternate fuels industry IMO. If you get your wish and the stock dips to $1.50, I'd suggest you buy all you can afford.
GLTU,
Murocman
We're the lead story in Biofuels Digest today!
http://www.biofuelsdigest.com/
GLTA,
Murocman
TAP,
Your guess is as good as mine, but I'd be somewhat surprised (and disappointed) if we don't get something this week.
I saw a post over on Yahoo that the editor of Biofuels Digest is having coffee with Syntroleum Mgt on Tuesday. If they end up doing a story, I'd find it odd if the company did not lead with their own PR first.
As far as price action, I'm thinking we should see the $2-3 range on a plant completion PR, then $4-5 on a solid contract/startup PR. That's kind of what I'm looking for the rest of this year.
Next year, think this could really take off if the follow-on plants come into play and there is more activity with China. Hard to speculate on where we could go, but I don't think $10 per share is out of the realm if the right kind of business developments occur. I think this company has a legitimate shot at being the "Cisco" of the biofuels industry.
All JMO. I'm planning on being a holder for at least the next 18 months if things continue to develop positively.
GLTU,
Murocman
Plant is Done!...Dynamic Fuels Blog update 7/10/10:
http://dynamicfuelsllc.com/wp-news/2010/07/10/july-10-2010-update/
We should be movin on up this week and beyond!
GLTA,
Murocman
JJ,
If the partner is Covidien we may know sooner than that, as their quarter ends next week, and they should report their Q by the end of July based on history. I'm assuming the same rules would apply to them in that they would have to report a material agreement with POSC in their earnings. Just food for thought. Looking forward anything good you hear from the CEO today, although I much prefer them to keep their yaps shut, run the business and put out meaningful PRs rather than cryptic promises and dates they never meet! Oh well...life in BB/pinkyland.
GLTU,
Murocman
Have been following, and owned shares in this company (although I don't currently) for awhile. I believe the reason the price is so low is simply because none of their efforts to date have led to engine production and revenues being generated. Until that happens, I think you'll see the share price languish.
GLTA,
Murocman
Looking for $10 by the end of this year and have a $30, 18-24 month target if the story plays out in a positive manner here & and in China. I have a full boat as well and contemplating adding some more. I think this company will be the first-to-market gold standard for biofuels.
GLTA,
Murocman
Found this while doing some DD on the upcoming earnings report:
http://www.slideshare.net/Neostem/neostem-investor-power-point-march-2010
GLTA,
Murocman
Blackhawk Exploration News Release for Tomorrow:
Black Hawk Explorations Wholly Owned Subsidiary Announces Successfull Clayton Valley Lithium Exploration Drill Program
Fox Island, WA., March 23, 2010 -- Black Hawk Exploration, Inc. (BHWX OTC BB;) announced announced today additional drilling results of it’s wholly owned subsidiary, Blue Lithium Energy. On-site geologist E.L.(Buster) Hunsaker had notified the Company that the drilling company, Boart Longyear, had reached its target depth (TD) as of Thursday, March 18 at 1:38 PM.
Bed Rock was reached at 520 feet, almost exactly the mid range of our targets. Mr. Hunsaker had estimated our drill range to be between 300 to 800 feet. Saline brines were detected at 80 feet and water sampling was initiated at 100 feet on 20 foot intervals. Cutting samples were taken at 10 foot intervals for testing. A few minor problems were encountered as drilling encountered clay bounded aquifers and multiple gravel layers. These Clayton Valley challenges were solved by the professional crew from Boart Longyear and 22 individual water samples were successfully taken as well as 54 specific gravel and bedrock samples which will be reviewed separately upon completion of our testing at ALS Laboratory Group's Mineral Division in Nevada.
Blue Lithium Energy encountered elevated salinity values starting 80 feet which continued to total depth of 540 feet. Through empirical comparative data researched by management, this is consistent with our understanding of potentially lithium rich commercial mineralization. Assaying for specific lithium values will begin this week and we anticipate being able to report initial results within 15 to 30 days.
About ALS Laboratory Group's Mineral Division:
ALS Laboratory Group's Mineral Division: ALS Chemex, is a leading provider of assaying and analytical testing services for mining and mineral exploration companies. Specializing in the analysis of a variety of sample types (soil, sediment, rock cuttings, core), ALS Chemex offers a comprehensive range of packages designed to suit the needs of the industry. Its laboratories span the world's most active mining regions and with over forty locations on six continents, ALS Chemex's services are accessible by even the most remote projects.
ALS Chemex prides itself on providing its clients the highest level of service and quality and achieves this through its dedicated client services staff, quality control department, and commitment to having ISO 9001:2000 certification at all locations.
About Black Hawk Exploration, Inc.:
Black Hawk is a diversified metals and energy exploration company with its current focus on lithium exploration through its wholly owned subsidiary Blue Lithium Energy and Gold discovery through its wholly owned Golden Black Hawk, Dun Glen holdings. Black Hawk is committed to an aggressive program of value added property acquisition, project generation, asset diversity and building Shareholder value. “….with the favorable winter conditions, both the Clayton Valley lithium exploration and our Dun Glen gold projects are ahead of our 2010 management growth plans for Black Hawk Exploration. A definitive sampling and exploration program for Dun Glen will be announced by the end of April and will commence shortly thereafter. The startup of the exploration program marks another key milestone for the Company.” stated Kevin M Murphy, CEO and Director of Black Hawk.
Mr. Murphy provides an open commentary on the Black Hawk Exploration website ( www.BlackHawkExploration.com ) under CEO-BLOG
Contact: Kevin M. Murphy - CEO / Black Hawk Exploration
CEO@BlackHawkExploration.com
News Release for 23 March:
Black Hawk Explorations Wholly Owned Subsidiary Announces Successfull Clayton Valley Lithium Exploration Drill Program
Fox Island, WA., March 23, 2010 -- Black Hawk Exploration, Inc. (BHWX OTC BB;) announced announced today additional drilling results of it’s wholly owned subsidiary, Blue Lithium Energy. On-site geologist E.L.(Buster) Hunsaker had notified the Company that the drilling company, Boart Longyear, had reached its target depth (TD) as of Thursday, March 18 at 1:38 PM.
Bed Rock was reached at 520 feet, almost exactly the mid range of our targets. Mr. Hunsaker had estimated our drill range to be between 300 to 800 feet. Saline brines were detected at 80 feet and water sampling was initiated at 100 feet on 20 foot intervals. Cutting samples were taken at 10 foot intervals for testing. A few minor problems were encountered as drilling encountered clay bounded aquifers and multiple gravel layers. These Clayton Valley challenges were solved by the professional crew from Boart Longyear and 22 individual water samples were successfully taken as well as 54 specific gravel and bedrock samples which will be reviewed separately upon completion of our testing at ALS Laboratory Group's Mineral Division in Nevada.
Blue Lithium Energy encountered elevated salinity values starting 80 feet which continued to total depth of 540 feet. Through empirical comparative data researched by management, this is consistent with our understanding of potentially lithium rich commercial mineralization. Assaying for specific lithium values will begin this week and we anticipate being able to report initial results within 15 to 30 days.
About ALS Laboratory Group's Mineral Division:
ALS Laboratory Group's Mineral Division: ALS Chemex, is a leading provider of assaying and analytical testing services for mining and mineral exploration companies. Specializing in the analysis of a variety of sample types (soil, sediment, rock cuttings, core), ALS Chemex offers a comprehensive range of packages designed to suit the needs of the industry. Its laboratories span the world's most active mining regions and with over forty locations on six continents, ALS Chemex's services are accessible by even the most remote projects.
ALS Chemex prides itself on providing its clients the highest level of service and quality and achieves this through its dedicated client services staff, quality control department, and commitment to having ISO 9001:2000 certification at all locations.
About Black Hawk Exploration, Inc.:
Black Hawk is a diversified metals and energy exploration company with its current focus on lithium exploration through its wholly owned subsidiary Blue Lithium Energy and Gold discovery through its wholly owned Golden Black Hawk, Dun Glen holdings. Black Hawk is committed to an aggressive program of value added property acquisition, project generation, asset diversity and building Shareholder value. “….with the favorable winter conditions, both the Clayton Valley lithium exploration and our Dun Glen gold projects are ahead of our 2010 management growth plans for Black Hawk Exploration. A definitive sampling and exploration program for Dun Glen will be announced by the end of April and will commence shortly thereafter. The startup of the exploration program marks another key milestone for the Company.” stated Kevin M Murphy, CEO and Director of Black Hawk.
Mr. Murphy provides an open commentary on the Black Hawk Exploration website ( www.BlackHawkExploration.com ) under CEO-BLOG
Contact: Kevin M. Murphy - CEO / Black Hawk Exploration
CEO@BlackHawkExploration.com
CEO Blog Update from Today:
Black Hawk Exploration Today
March 22nd,2010 CEO Blog Update
I hope you've all read the Friday Press Release, if not here's the Headline as well as Tuesday the 23rd's.....
Black Hawk Exploration's Wholly Owned Subsidiary Successfully Reaches Target Drill Depth
Here is the HEADLINE for Tuesday March 23rd (tomorrows)Press Release - Black Hawk Exploration’s Wholly Owned Subsidiary Announces a Successful Clayton Valley Lithium Brine Exploration Drill Program.
See News for full version of 23rd's early release.
Now I'll leave this up for awhile as well...
I'll share a bit of insight into the 'Drill Week' at Clayton Valley. On Friday the 10th, Boart Longyear mobilized its crew at the sight we had prepared and fired up the rigs to start our search for Lithium. The drills cut through the layers of sediment and alternate clay stratas like butter. We hit salt water at 65 feet and started to take gravel samples for future analysis every 20 feet once we broke our 100 foot mark. Liquid samples were also taken seperately for shipment to the labs upon reaching total depth of our drilling. At 420 feet we hit our first road block when the 40 feet of casing at the top of the hole seperated. the water pressure was excellent and we flowed at 80 ppm. The casing seperation required us to shut down the drill, remove the 420 feet of drill rod and reseal the casing. Thank goodness we had the crack crew from Longyear because this is where most wells are lost. A decision was made to extend the casing to 60 feet and pour a 14 bag mud collar(a special concrete) to act as a dam and restore well pressure. 14 bags didn't work so another 15 bag mix was poured downhole. Not enough, and we were out of mud and the sun was setting. Longyear contacted another BL crew in the area and by sunrise another load of mud magically appeared. Another set went down the hole and we were back in business sampling every 20 feet. At 480 feet we ran into another road block and the drill bit packed up. Once again we pulled all the drill rod (480 FT)and unplugged the drill bit rollers and bearings. We pulled gravel samples and E.L. (Buster)Hunsaker advised us we were approaching bedrock...our target. We could have stopped there as we had more then enough data, but the 'Boart Boys' and Busters comment was 'let's do it'. 40 feet later we had hit bottom, our final samples retrieved and the hole was called TD(Total Depth).
The Press Releases never tells it all.
Here is a link to insider/institutional activity.
Murocman
http://www.mffais.com/nt
Interesting in light of the PR that was released today about reaching target drill depth. I think I read somewhere that once the target drilling was completed that the samples would be sent for analysis, and that would take 10-14 days.
Will be interesting to see what, if anything come out Monday, or if the release today was it?
Either way, I think this company has a very exciting future ahead. You don't see very many CEOs buying the amount of stock this one did. It indicates to me that he has A LOT of confidence in the success of this company. I hope to share in that success as a shareholder.
GLTA,
Murocman
What Ericsson would be buying from Nortel:
Joint Venture
LG-Nortel Co. Ltd., a joint venture of LG Electronics Inc. (Korea) and Nortel Networks Corporation (Canada) was established on November 3, 2005 to specialize in developing and marketing telecommunications equipment and network solutions. With Nortel's heritage of building world-class networks and LG's innovation in communication devices, LG-Nortel is well positioned to deliver on its vision of 'providing the best communication products to enrich the human experience' and is poised to deliver differentiated value to customers by providing products which enable them to freely communicate anytime and anywhere.
Since the announcement in January 2006 of a MOU (Memorandum of Understanding) concerning the joint venture, Nortel and LGE have already successfully collaborated to win significant contracts in South Korea. LG and Nortel have been selected to deploy HSDPA/WCDMA networks for KTF and SKT, paving the way for the joint venture to become a major 3G supplier in one of the most advanced telecommunications markets in the world.
The company's sales and marketing departments are located in the GS Tower building in Kangnam-gu, Seoul and its R&D center is in Anyang, Geonggi province. The total number of company employees is approximately 1,400.
For more information on LG-Nortel, visit www.LG-NORTEL.com*
Ericsson Reportedly Buys LG Stake
By Mark Evans | Published: March 18, 2010
Ericsson is reportedly buying Nortel’s 50% + 1 stake in the Nortel-LG joint venture – a move that, if accurate, meant that LG didn’t exercise its right of first refusal. The deal was reported by the Seoul Economic Daily’s Web site today.
Whether the deal has been consummated is unclear as LG said nothing has been decided about Nortel’s stake in the joint venture. “No schedule or partner has been decided for the moment,” LG spokesman Kim Gyeong told Bloomberg.
Think of it as a reverse stock split. It would be a capital-neutral transaaction and you'd have a certain amount of time to exchange your certificates (notes) for new ones.
Bottom-line no immediate windfall.
Murocman
Depends on the drug and how far along the company is in their discussions. I would think given the potential market for Silenor, it probably wouldn't take long for somebody to come knocking if they haven't already.
I'd expect a deal to get done within 30 days of approval if they are serious about wanting to get this on the market in the second half of 2010.
GLTU,
Murocman
Will be interesting to see how this trades going into approval. Given the previous track record with the FDA, I wouldn't be surprised to see it go mostly sideways.
I also wouldn't be surprised to see the PR come on Thursday or Friday given this is a re-submission.
Assuming it gets approved, I'm thinking $6-10 is probably a reasonable target out of the shoot. If a partnering deal follows immediately I think we could see $15-20 in short order. If not, price will probably pull back to the $5-6 range.
I think I read where the worldwide insomnia drug market is somewhere around $6.4B and the U.S. is 75% of the market. If Silenor could get 10% of the market with the right partner, a reasonable market cap would be around $500M (which is where I get the $20 target).
All MHO but I'm in for the ride, as I think this gets approved, and the biggest move doesn't come until the partnering deal is announced.
GLTA,
Murocman
News looks good! Let's see how the market likes it?
Murocman
Best Bio-Energy Play Out There Right Now!
The company's 10K goes a long way towards establishing this company as the best bio-energy play out there IMO! Some reasons for my claim:
1. They are making a profit WITHOUT having an operating plant. This means they are generating operating income through licensing fees and engineering services. Bottomline...others think their technology is valuable and are willing to pay for it!
2. They are ON THE CUSP of having an operating plant, which will only add to their revenue stream, and enhance their balance sheet even more. This company will be the first significant bio-fuel producer in the country, and will be a disruptive force in the industry. So many of the other companies out there are still many years away from generating commercially viable energy on any kind of significant scale. We're ready to go right now!
3. Their technology is one of the few that does not put any pressure whatsoever on the food supply. They use a waste product and turn it into something very valuable. One of the best business models you can find is to turn one mans trash into many men's treasure.
4. Flexible technology. The same process can be used with multiple feedstocks (animal fat, natural gas, coal, algae (eventually). This means it has a significant chance o be employed in multiple places and adapted to what fuel is abundant (i.e. coal in China, natural gas in the Middle East, etc.)
5. Support from the Govt (here and abroad): Whether or not you agree with the politics & wisdom, governments are pretty much falling all over themselves to try and incentivize green energy production. This will enable the company to get its technology fielded and improved to the point that it can stand on its own in the commercial energy landscape. (I personally think this company will do just fine without a nickel of subsidies in the long run, but having them is a nice boost to the bottom line in the near-term).
5a. CHINA. Their demographics dwarf those of the U.S. If they decided to really to deploy Syntroluem's technology via SINOPEC using coal and natural gas as a feedstock, they will make Geismar look like some kind of small-scale demo plant. The licensing fees will be huge, and will go straight to the bottom line...making this company incredibly profitable!
I'm sure I could come up with more plusses, but the above represents some of the most significant reasons I think this will be a very successful company and lucrative investment in the next few years. I would not at all be surprised to see the share price approach $30 within 18 months if things continue to develop according to plan for the company.
For these reasons, I think Syntroleum represents an incredible compelling investment at two dollars & change, and will be accumulating all I can beyond what I already own in the coming days and weeks.
GLTA,
Murocman
This company seems to have a good product and is growing very quickly, but the stock lacks liquidity, and thus will not attract much, if any institutional money until the share structure changes IMO. Watching for now. GLTA who are invested.
Murocman
Highest volume since 8 Sep 09.
Looks like something definitely is up. May be an interesting and profitable ride here over the next few weeks.