Here to make money and always win
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.
Want to bet that CVP and Fife's convertible debt hit the magic 6month conversion date and they flipped out of the stock. The timing of the maturity date and the volume one up nicely for the recent uptick in volume. If CVP and Fife are out it is the perfect timing for a pr. Betting on another delay.
That statement was part of his push to move forward fracking in the UK and increase coal mining in the UK.
The UK has shale reserves but politically the UK has resisted fracking. EU natural gas prices are about 200% of the US price and 300% of the middle east price. They have been importing more and more gas from Eastern Europe as the North Sea reserves are exhausted.
The coal mining industry has been stunted by environmental regulation (among other things) over the past 20 years.
D-20 is not an answer to their structural issue in energy.
In the interest of sharing for those of you starving for information.
Mr. Jeung (John) Kwak's office number is 847 756 4808. That is the phone number for the company he is the president of called Hanscom K. Hanscom K shares office space in Barrington, Illinois with Ecolocap. 1250 S. Grove Suite 308, Barrington, Illinois.
Mr. Egger lives on Thor Street in beautiful Davenport, Iowa.
I stand by my long held belief that the CEO is not a crook just incapable of running a public company. If you look at the manner in which the Company fails to provide material information to its public shareholders you can see that the CEO and those who advise him have never understood the 8-K and Reg FD filing rules. This doesn't make him a crook it just makes him incaable of running and operating a public company. Here are some simple expamples
- timely filing of information about the entering into material convertible loans (the most recent example is the lack of filed information related to the CVP loan);
- timely filing of information about share issuance in relation to the conversion of convertible loans (they only provide this information once a year rather than within a few business days of the conversion as required by the rules); and
- timely filing of material contracts (whatever contracts really exist regarding the Korea D-20 program).
For anyone who beleives that he is worth turning in go to the following link and have at it:
https://denebleo.sec.gov/TCRExternal/questionaire.xhtml
I on the other hand am just waiting until we get up to $.0003 one more time to sell out. The story has gone on way too long and I am afraid the closing chapter will not be that pretty.
Bes tof luck to all.
The reason they added this info is that it is a requirement of the SEC to file all material contracts of a registrant. With the market cap and balance sheet of ECOS every contract becomes material and needs to be filed. Since they hadn't done so in the past they did it in the 10-QA to attemt to achieve compliance. They stll need to file the convertible loan documents from the CVP and Fife deals with their 10-K.
There is no way this is going to reverse split in the next 6 months for two reasons.
First, if you read the last 10-QA carefully you would see that there is an overhang from convertible debt that can be converted into common shares. For example we all know that Chicago Ventures/FIFE investment is convertible debt (or as others call it toxic debt).
Second, the Company needs to generate some revenue and cash flow in order for the stock to sustain the impact of the reverse split.
There is a real risk if they R/S before they clear the overhang and/or generate revenues that the shares will revert back to or near the pre-split levels. They need a catalyst to hold the R/S value and there isn't one right now.
If MS can show some sustainable revenue I would think he could look at an R/S by summer 2014 (but not much before).
Vince every time the volume spikes my prognosis is that one of the toxic debt enders (Asher, Chicago Ventures, etc.) is converting their debt into equity and flipping out.
The toxic debt loans are structured to permit the loan to be converted into shares anywhere 30-90 days after the loan is issued. At current prices each $100k in loan principal takes 500m in shares at conversion. The interest is also likely paid in shares (at least that is the way we fund).
I understand that the Chicago Ventures transaction was a loan of between $100k, with the ability to lend up to $250k more. The first $100k may already be ripe for conversion. To clear that number of shares you need to push it through over a few days.
Sorry for the absence but have my real job to do. Been thinking about the increase in A/S for the last few weeks. I think the answer is pretty simple. ECOS has borrowed money from short term toxic debt holders. At the end of Q3 ECOS has $965,000 in debt outstanding. Any time any portion of that debt comes due, ECOS issues shares to the debt holder who sells them in the market.
at .0001 per share it takes 1bn shares to repay the debt exclusve of interest. If I were a betting man (which I must be to be in this stock), a lot of the dilution is caused by repayment of existing toxic loans. This happened in Q4 2011 and Q1 2012.
Anyone want to bet that the CVP investment is another convertible loan where CVP can get paid out by converting their loan to equity and selling their shares.
I have reason to beleive that will happen ... more to come
The SEC portal accepts any document that you put through the portal. It is the issuers responsibility to ensure they have complied with the disclosure rules. You could file your grandmother's choclate chip cookie recipe on an 8-K.
The problem with that the 8-K on the CVP transaction is that it doesn't comply with the SEC disclosure rules. ECOS is supposed to disclose the terms of a material transaction (which a maor investment would be). They should be providing the amount invested, the terms of the investment (debt versus equity) and other material agreements relating to the investment.
The ecodiesel technology is entirely different. It is a Diesel engine which injects propane or nat gas into the air stream. Esterhol is a different fuel composition.
Theorteically he could go out to late March/early April before he files the report. This doesn't absolve him from his failure to comply with the 8-K rules.
ECOS PR says ECOS receives major investment from CVP. If they actually closed the deal they needed to file an 8-K disclosing the terms. If the deal didn't close they would be obligated to issue an 8-K saying the deal didn't close. It is all that simple.
MS needs to file something not just blog. The SEC rules are as clear as can be on this point. Help us out MS.
Before you say what you said about CVP google the name Alan Klepfisz. John Fife invested in him and his streaming music business a number of years back. He then sued him and got a judgement for over a $1m when he didn't actually deliver.
Fife's fund investors are some Chicago big hitters like JB Pritzker and Pat Ryan and his outside counsel his a reputable firm that I have useddealt with many times over the years. I would assume that before a dime went in they did more than kick the tires here.
I attribute the confusion to the fact that MS is hardly a writer. I think he writes his blogs from his heart.
I want to clear up one point and suggest one day to get to the bottom of the prospects of this company (which I still think are real).
The 8-K rules of the SEC require that a company file an 8-K within four days of a filing event. The CVP contract , any issuance of shares, any customer contract and any acquisition by this company (due to its size) are all required filing events. The rules require the company provide details of the erms of the transaction not just say it had a transaction. This is where ECOS has not cmplied with the spirit or the letter of the SEC disclosure rules.
MS if you are reading this board provide the required details and let the shareholders actually understand what is happening,
I think a bit more transparency would help this stock and maybe bring it into compliance with US Securities laws. Here are some questions MS should answer
1)CVP made a major investment. What was the magnitude? Was it a loan? If equity involved how many shares?
2) how does ECOS intend to use and have they used the authorized shares. Have they committed to selling/issuing any to date?
3) does ecos have a deal with the owner of the esterhol trademark? If so on what terms. Share issuance involved. If no deal how do you use someone else's trade name.
MS could start here. Videos and blogs are nice but hard facts are better.
Let me share something with you. I think this is real. I had lunch with MS 2 years ago when he was looking for funding for the battery.
I think his problem is he has a lot of balls he bats into the air but never gets one to the finish line. Some of the ECOS ideas have merit none are ideas where they will corner the market. Most of them are not all that proprietary, like D-20 and emulsified fuels.
The company has potential MS is you are listening focus on one thing and get it to a sustainable revenue run rate. It was this lack of focus that caused us to not be interested 2 years ago in funding this company.
Not sure I would agree with your assessment.
There are a number of companies and Universities that have worked on emulsified fuels like D-20 for years. In Europe they have been trying to move this into commercial trucking and bus applications for years. There are four real players already commercial in this segment (some as long as 10 years). Read the following document http://www.arb.ca.gov/fuels/diesel/altdiesel/a_spataru.pdf
On biodiesel this is nothing all that new. Companies have been trying to push biodiesel for years. There are over 300 fueling locations in the US today that offer B-20 which is a 20% biodiesel blend. The biggest consumer is trucking. The biggest impediment to the growth has been the engine manufacturers and their warranties.
In the US the biggest market for biodiesel today has been governmental agencies and municipal service providers. They will likely remain the largest consumer.
On applications like trains biodiesel has been looked at for a while. Berkshire Hathaway has instead centered their efforts on LNG since they have both the largest rail company and substantial investments in gas related industries. In addition with all of the shale gas and nat gas pricing it is really more competitive to ceter around LNG instead of diesel.
Let me address each of your questions. I don't think the SEC would give MS a pass if he passed along misleading or wrong info on a blog. The SEC made it clear in their rulings since Netflix's use of their CEO blog that such use of a blog can constitute be subject to SEC enforcement if not made properly
second, 5bn shares is only $1.5m at today's price. If MS is serious about developing a market in Korea for D-20 he will need most of those shares to build out the infrastructure and the distribution channel. Having worked in and around the Korean market for over 30 years it is a very expensive distribution market to operate in (much akin to the Japanese system). For a foreign company such as ECOS to penetrate it will take real moey to build out a channel.
ECOS should be in a quiet period until earnings are released. They shouldn't bog or answer emails of investors providing non-public info until after earnings.
I spent a bit of my holiday time looking at the Korean poutlry market and throught I would share somethings I learned which might be helpful to ECOS investors.
Korea produces only 80-85% of its chicken requirements. The balanc eof its requirements come from the US, Brazil and Denmark. The bulk of imported chicken is imported to serve quick serve restaurant business (read KFC) and the regular restaurant business. This is expected to continue over the next 5 years.
US & Brazilian chicken have an imported cost which rund about 20% less than Korean chicken This gap will increase over the next five years as the tarriff reduction under the US Korea trade agreement kicks in.
Korea principal export markets for chicken are Hong Kong and Vietnam. The export production is less than 10% iof the total production and not expected to grow materially over the next five years.
2014 is epxected to see an increase in chicken consumption due to the World Cup Soccer tournament. The measuring point for this was the 2010 World Cup. The increase will be temporary (10-15%) and fall back in 2015.
Heating and power costs of Korean chicen producers run about 5% of their total production costs. That means use of D-20 is not driven by cost benefits to the chicken farmer as it is not material but needs to be yield related.
Korean poultry production is vetrtically integrated. The farms tend to be part of trade groups which include the slaughter houses and producers. Business model similar to Japan.
The Korean poultry market is regulated by the government in terms of production. When production of a variety of chicken puts pressure on price the government steps in to cut production and manage price.
Here is a link to a useful report.
http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Poultry%20and%20Products%20Annual_Seoul_Korea%20-%20Republic%20of_9-5-2013.pdf
In the spirit of full disclosure I really like ECOS and its technologies. I only wish they would focus on one technology one market and get some traction. I haven't seen that from MS. I had occassion over the past few years to have met MS and think he is a bright person. If I were building a company I would think of him as an R&D person not a CEO. I bought a position in ECOS over 18 months ago. I don't ever see this stock as a 100X return.
I actually looked at taking one of my VC clients into ECOS a couple of years ago. The share price sub penny, market cap, the complexity of the capital structure and the share count takes this off the screen of most investors. I really wish MS would consider a reverse split of 1,000 to 1 or 10,000 to 1 as it would allow ECOS to come on to the screens of many more potential investors.
Sorry for the long post but I wanted to share my research as I think this is agood concept just not a well run company.
My guess is that it has two purposes. They will shares into the mkt to raise financing. My other thought is that cup likely has a convert in their deal My only hope is ms focuses on one thing at a time and gets the Korea project up before doing anything else
I have been looking at the banter as to why the company would increase AS. To me this is actually pretty simple if you understand how things work in Korea and in the ag markets in particular.
If ECOS starts selling D-20 in January the nomral collection cycle in ag is somewhere between 150 days and 240 days. That means ECOS will need to funsd working capital not for 1 month but likely 5-8. They need to keep buying inputs and finacing Korean VAT on their purchases and wait to be reimbursed by the customer. The faster the market grows the more working capital you need to finance.
I would not be surprised that ECOS will need between $500-800k to finance working capital until they get to a steady state cash flow. Probably a good quesiton for MS.