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Hi Tom - the mm's have their "go to guys" which "swarm in" whenever inventory is too high and stock needs to be pushed into the market. It's painful to watch an organization die, but this is what that process looks like in the OTC markets. Sadly, I've seen it before.
Knowing Harry a little bit, my guess is that since July 2007 (when the CTTJ shell flipped to CYPW) he has learned next to nothing. I'll further bet that his sense of paranoia has been enhanced.
BTW another Florida name to note: Mark Renfro. He initially "scoped out" Harry Schoell in the 2005-2006 time frame and then brought in Jim DiPrima and Robin Moody. The rest is history. All of those guys are in their mid-late 60s, and I think Moody is about 70 now.
Agreed. I knew the previous owners of the shell and they were clear on how they "staked out" CYPW for over a year before they made their move. Their goal - fully realized years ago - was to flip the shell, crank out the hype, ride the wave and then move on. Well, they did just that and Jim C. DiPrima and Robin D. Moody have long since moved on to many other scams.
@Tom Swift - ever notice that when a price movement is required, a bunch of non-regulars show up and start posting wildly about "potential" and "act now before it's too late" stuff? This is getting worse than an Indian "click farm" :o)
Thanks for the humor break :o) Some of these poor misguided folks need to let their mom use the computer, I think...
Trading volume/price equates to <$12k. Sorry, sports fans, but no one's gonna retire on that.
Hi Tom - agreed! I think that Nelson pulled one over on Schoell. Nelson is getting a new public shell + financing and will have fresh stock to sell. Harry gets to keep his patents hanging on the wall and some unspecified piece of WHE-GEN, which will be hard for him to monetize (rule 144/145 issues).
15 million shares at $0.0013 is a mere $19,500. Sorry folks, but that's chump change. I am glad that I sold 1,200,000 shares when it at $0.25. I could see the long slow, sad decline coming. A number of other savvy posters predicted this years ago as well.
Warning: WHE-GEN stock is NOT CYPW stock! Don't confuse the two. Nelson is likely going to find another shell into which WHE-GEN can be folded and thus quickly go public. MergerNetwork.com contains a bunch of shells for sale at various terms and conditions.
Exactly. Chris Nelson realized how much he could make unfettered by the existing capital structure of CYPW. So, he proposes this split, validating the original business model in Harry's mind and playing to Harry's considerable ego. As an ex-securities attorney, Nelson has all of the needed contacts for future funding and another flip, unencumbered by the "rank and file" shareholders, who are holding nothing of any real value. He's got a plan while Harry is very likely highly confused.
An old story, played out yet again with different actors and stage props.
Hi Buddy - Agreed. I have had dealing with Chris Neslon as well as Harry Schoell years ago. At one time he was reputable but now that he has had a taste of the easy money that comes from an IPO like this one, he's hooked.
Thus this "WHE-GEN" play.
He'll get everything registered, do some new announcements (the PRs for which which may already be in his pocket) and ride the wave. IPOs are back in vogue and a nice registered "clean" one attracts a lot more interest and "action" than the run-of-the-mill "stinky pinky".
We've seen this play before. Unfortunately, there's enough financial idiots out there who will get hooked, skinned and eaten on this process.
It'll also be fun to watch what CYPW itself does. In other words, did Chris Nelson fake Harry out as well because Harry is sticking to his guns on the tech? Or, did Chris propose this split and promise Harry some dollars for his patents (validating Harry's model in Harry's mind) and will use that as more PR to unload new stock on an unsuspecting market? To Chris, that money to Harry is simply the cost of the clean shell and a new shot at more stock sales for nothing of real value.
Either way, Chris is very slimy.
Having spoken with Harry, I concur with your assessment. He is (or was) convinced of his own genius and his lack of formal engineering training has surfaced as CYPW's value has declined.
We nickname these kind of folks "basement bombers" because of their usual "duct tape & coathangers" mode of operation. In this case, as you eloquently stated, Harry was absolutely convinced of his idea's worth and the purveyors of the CTTJ shell knew that and preyed upon his ego to do the RM and they profited very well back in 2007-2008 timeframe. Harry was "scoped out" for over a year before these guys made their move.
The "ringleaders" were Jim DiPrima (Omaha NE), Robin Moody (somewhere in Ohio,. formerly Dublin, OH) and a handful of others, possibly including Mark Renfro (somewhere in FLA), who made the initial contact with Harry Schoell. DiPrima is continuing pink sheet scams, including the Hamlet Group (with Moody http://www.rtechno.com/team.html), "Rising India Inc." (http://www.otcmarkets.com/stock/RSII/profile) and a few others along the way.
Like I said, I've seen this game play out many times before. In this case, Harry was an unwitting dupe, blinded by his ego and was ripe for the picking...
Hi Tom -
Knowing some of the "players in the game" pre-CYPW days (before July 2007) the current state of affairs reminds me of the micro/mini-cap "biotech IPOs" that were big around 10 years ago: The "ringleader" would gather unsuspecting bio-tech people and existing tiny companies that claimed questionable technologies. He (or she) would assemble them into a larger company with promises of many things, including (and especially) enormous stock value. The main purpose, of course, was to insert this "biomass" (all puns fully intended) into a shell and then flip it ASAP, reaping good rewards for the "ringleader" and anyone else "in on it".
The key item was that the technologies claimed by the tiny companies never panned out. The associated claims - and the resumes of the selected individual "biotech people" - were merely used to establish enough "street cred" to enable the flip and motivate buyers of the security. Everyone else was an unsuspecting "mule": quite active in the drama but not knowing the real script (e.g., CYPW's many advisors, directors, specialists that have come and gone over the years).
So, once the value was extracted by the ringleader (and cronies) after the flip, what was left decayed in value as the reality slowly sunk into the market that the alleged "biotech breakthroughs" were not real.
My take on CYPW: initially, the insiders may have really thought that the tech would work. Now, the reality is setting in that it's not commercially viable and various financial and organizational moves are being made to extract whatever value can be extracted and avoid giving cause for shareholder lawsuits.
I've seen this before in many guises...
A brutal but accurate assessment :o)
CYPW's letter does not provide any expectations for product sales or market acceptance. If the WHE does not sell and no royalties are produced, from where will CYPW derive its income? That's a VERY serious hole CYPW's letter to shareholders.
That CYPW announcement was amusing, especially Chris Nelson's new position. Yeesh. More games. Glad I dumped the bulk of my shares when this was at $0.20. Had I not been contractually limited, I would have dumped all of 'em then.
Under the rosiest scenario, let's consider that $150,000 payment as 100% profit (which it is not). That assumption would make the earnings per share about $0.0005. Given that scenario, CYPW is currently trading at a P/E of 9.0, which is reasonable. Hence, there is no reason at all to expect (or even hope for) upward pressure on the stock price.
CYPW started dying a couple of years ago, when the convertible notes starting being sold in higher volumes.
Maybe CYPW will explain how that will re-capitalize CYPW without excessive dilution. Maybe CYPW will also explain what their plan is to deliver marketable products - I don't care if they are solar-powered can openers - just something that works and will sell.
It's all over but the funeral. Someone will take the shell, squeeze all of the common shareholders down to 10-12%, do a reverse split to jack up the price and wrap it around something else. That'll get milked for a while just like CYPW. It happened 10 years ago with NCST, SDAI, CTTJ and finally CYPW. Nothing new here.
Answer to your question: we are way past the turning point. It's over. Sell what you can which you can.
Harry's busy packing, destination unknown.
Both questions are good. Please ask as many detailed, specific questions as you can. We are all suffering from a lack of believable data.
The folks holding the convertible notes are bailing for whatever they an get. Don't blame 'em. Watch for another shell flip or other major move to fabricate interest. This shell has been passed around more times than a bottle of cheap whiskey at a frat party. I knew the original holders of it more than 10 years ago. Nothing's changed.
Any predictions as to CYPW's lifetime remaining?
$0.20 would be better :o) Fortunately, I sold about $250k worth between 0.33 and 0.21 quite some time ago. Still hold on to some.
Having dealt with this stock in the $0.20 - $0.34 range in large volumes, it's kinda hard to get excited about a 1-cent move. Sorry.
Subpenny is always the beginning of the end.
Agreed. They are probably scrambling to find a new company that they can fold the shell into. It's a relatively clean shell, fully reporting so it has value. They can dilute all common shareholders using class B voting shares and essentially do what they'd like with it. Clean OTCQB shells fetch between $500k - $1M these days (c.f. merger network).
Any explanation for the precipitous decline?
James D. Crank used to be part of CYPW's "cadre of consultants". He left CYPW some time ago, correct?
It appears so. It's May 20, 2014 and none of the "forward looking" projections (production-wise nor financial-wise) have been met. I wonder what Chris Nelson's next step it? Sell/flip the shell into a new, productive company? That would be a last resort and possibly hard to do with all of the shares already issued. The new acquirers would naturally do a reverse split to reduce the share count and increase the price.
Nasty - but he deserved it
Thanks for the info. Phoenix is playing it safe, as well they should. Why buy something that does not meet the required operational criteria?
Hi Buddy - An effective summary of the history leading up to the current state of affairs. The facts are what they are and they do not paint a rosy picture going forward.
CYPW could learn a lot from Echogen: pick one specific application and tune the design to that. Get it sold and commercially accepted. Then, you can expand the design space to include related applications as market demand indicates. Harry's effort at attacking the entire low-end market has been met with frustration and total failure.
I contacted Echogen to see exactly what they offer. They are into larger systems and have one unit built and operating. They are working on a smaller unit. Both of them are for a lot larger applications than CYPW.
I like their focus, though, and CYPW could definitely learn from that. Here's their letter that they sent to me:
Thank you for your interest in Echogen Power Systems. I am not familiar with Cyclone Power Technologies, so I cannot address that part of your question. Howevecid:image002.jpg@01CE03AF.E0A34680r I have included some general information about our system’s advantages below that I hope you find helpful.
Echogen has developed an 8 MW nominal heat engine, the EPS100, which uses supercritical CO2 as the working fluid. The typical application for this engine is waste heat recovery from the exhaust of a GE LM2500 gas turbine, specifically 68 kg/s of gas at 532 degrees C. You can see this information in the EPS100 brochure I’ve attached, which also describes some of the advantages of our system. CO2 is environmentally benign, non-toxic, and has favorable heat and mass transport properties which allow for an energy dense, compact thermodynamic system. Echogen is also developing a 1.5 MW heat engine, the EPS30, with an expected commercial availability of 2016. We are interested in hearing from customers looking for smaller heat recovery applications within that time frame.
Please don’t hesitate to contact me via email or at the number below if you have any other questions about our system. We look forward to working with you.
Best,
Laura Nicholson
Applications Engineer
Office: 234.542.8025
Mobile: 908.601.4578
E-mail: lnicholson@echogen.com
Web: echogen.com
Still waiting for a product & market comparison of CYPW to Echogen. Anyone have any expertise here? That would help clarify CYPW's advantages, if any.
Anyone heard of Echogen? They're in Ohio, possibly also making use of Ohio State University's expertise. They have a waste heat recovery process and engine. Here's a link to what they do: http://www.echogen.com/our-solution/system-overview/
Here's a link to their EPS100 engine description: http://www.echogen.com/our-solution/product-series/eps100/
It's different than CYPW's approach, of course, but it appears that they can actually deliver a system. More investigation is certainly warranted.
"If Chris Nelson was on one of those tv pump stock shows..."
He most certainly was. He worked really hard at not looking at the his interviewer who was wearing far too much makeup. It was a strange combination of sadness and creepiness.
CYPW has always been cash-strapped because they can't sell a product that they don;t have. They have an aroma of a product. So, stock sales are the only mechanism for raising capital. This has been going on since July 2007. The guys who made money here (Jim DiPrima, Robin Moody and the "21 special shareholders" holding notes) are long gone with their winnings.
Hi Terry -
"...Is not Phoenix a customer or at least a prospective customer?"
An installed, fully functioning, paid-for "CYPW engine" is not in the marketplace as of today. If someone has verifiable evidence to the contrary, I would love to see it.
I truly hope CYPW finally succeeds. That's why I'm hanging onto some of my shares. Right now, prudence demands that the "success celebration" be put on hold and the champagne be kept on ice
Hello Terry -
"Both CYPW and Phoenix Power seem to think Cyclone does indeed have a production-ready engine."
Doubtless.
The problem is that their opinion matters little. It's the customers' opinion that matters. If and when CYPW actually sells and installs a working engine at a customer facility - and the customer fully verifies that everything is working properly, they are happy and CYPW has been paid - THEN there will be good reason to "pop the cork" on the champagne.
I am here because I own a lot of CYPW stock. Sold a few million shares when the share count was lower and the price a lot higher (25 cents) but still have some left. As of 4/29/14, they do not have a working product that is production-ready and hence suitable for sale and successful operation. If you have any evidence to the contrary, please present it.
By their own admission, they are working towards that goal. That's all very nice but they have utterly destroyed the capital structure in doing so. Chris Nelson's recent interview on one of those cheesy "money shows" was sad. That's a real low point in CYPW's 7-year history as a publicly-traded company.