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Blog Videos
The new JHRivera Blog is partially working. The Team Redwood Video is new. Or at least I had not seen it before. However it most likely is a couple of months ago. It is about 45 minutes long, at a dinner Presentation (to potential investors, I assume). The Patent Attorney gives a 2 minute talk, Kelmer Smith does a narrative video presentation with number crunching. The audio is hard to hear in spots, the visual fuzzy mostly. They do briefly go inside the Natchez plant for a tour and demonstration.
http://www.jhrivera.com/
http://www.jhrivera.com/Redwood.wmv
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USSE BioFuel Lab Analysis
Summit Environmental Technologies, Inc. Biofuels Laboratory Report
Scientific analysis of properties and qualities of the liquid biofuel USSEC produces.
http://www.maximuscommunications.com/set_report.pdf
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UVCL Tax Loss CarryForwards
This is from UVCL April 2006 10K:
" No provision for income taxes has been recorded due to net operating loss carryforwards totaling approximately $1,569,000 that will be offset against future taxable income. Theses net operations loss carryforwards begin to expire in the year 2021."
I am not a CPA but they could possibly have a cash value of:
$1,569,000 * .33 = $517,770
A clean, usable shell has an intrinsic value on it's own merit. It is not hard to argue that UVCL should have a Market Cap of $1.5 million to $2 million. As of this morning the Market Cap is $630,000.
Predictably, the stock overreacted on the down side, with the Pure Romance Merger Termination. As investors get over the shock, and new investors find this opportunity, the share price should return to it's fair value.
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UVCL Tax Loss CarryForwards
This is from UVCL April 2006 10K:
" No provision for income taxes has been recorded due to net operating loss carryforwards totaling approximately $1,569,000 that will be offset against future taxable income. Theses net operations loss carryforwards begin to expire in the year 2021."
I am not a CPA but they could possibly have a cash value of:
$1,569,000 * .33 = $517,770
A clean, usable shell has an intrinsic value on it's own merit. It is not hard to argue that UVCL should have a Market Cap of $1.5 million to $2 million. As of this morning the Market Cap is $630,000.
Predictably, the stock overreacted on the down side, with the Pure Romance Merger Termination. As investors get over the shock, and new investors find this opportunity, the share price should return to it's fair value.
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PLRO Red Flags
Your post reveals nothing new. You want to know why the stock is going down, I will give you several reasons.
PLRO issued a PR November 20 announcing the introduction of their rail curve grease. The 10K was just released with no mention of sales or Revenues for the grease from Nov20 - Dec 31.
PLRO said the Merger was delayed because SEC wanted more Financials. Hogwash. The 10K comes out and is mostly about North Tech, which is totally useless to PLRO. A total waste.
PLRO has Common Stock, Preferred Stock (convertible at 5-1), and Warrants. They state Authorized Shares is 400 Million Common and 100 Million Preferred. The fully diluted number is 900 Million (100 Million Preferred is Convertible to 500 Million Common Shares).
Outstanding shares IF they ever figure out how to complete a merger is about 102 Million shares.
PLRO admits MORE rounds of dilution are coming.
PLRO is Listed on 2 Exchanges in Germany. Exchanges that are well known for Naked Shorting. PLRO says this is not a problem.
The Merger should have been completed in November when the company went public. 5 months and 2 delays, merger is still not complete. I hate to tell you folks but Merger will not be done by April 15, the Merger Termination date. The new Shareholder vote is Thursday April 12. The 15th is Sunday. You better hope they file ANOTHER 8K with an Extension for the Merger. One thing is for sure, you do not want to own this stock IF it reverts back to North Tech. North Tech never made any money and was probably valued under a dime, or even sub-penny.
Several weeks ago SEC halted bunch of stock due to excessive spamming. Many people here claim that they bought PLRO due to glossy brochures they did not request.
A Silent Period is bunch of garbage. PLRO did a PR about the March 1 Meeting, they had a Fiduciary Responsibility to inform Shareholders of the results of that meeting, and they neglected to do so.
Now, they are going to Reincorporate into Delaware Platinum Research Organization?????? Unbelievable. What a mess.
http://www.investorshub.com/boards/read_msg.asp?message_id=18273793
They have been unable to complete a simple Reverse Merger in 5 months, this should give you some idea of how capable they are to run a business.
I have learned when things get complicated, beware. They are usually complicated, because they do not want you to know what is actually happening. The PLRO PRER14A is 194 Pages!! Incredible. Go ahead try and read it.
There are 2 kinds of companies. One is investor friendly, the other is not investor friendly. PLRO has left their investors twisting in the wind. That is not the kind of company you want to invest in.
These are all red flags, and there are more. I am not wasting any more of my time.
I used to be a big supporter of PLRO. Now when I see PLRO I get sick to my stomach. What they are doing to their investors should be criminal, if it is not. Many have lost money because of their ineptness, whether intentional or not.
April 15, the Contribution Agreement Termination Date is coming quick. Going to be interesting.
IMHO.
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OT: Force Proctection Inc. (FRPT)
Company just went to NASDAQ a month or so ago. I think within a year or two, you could have bought for under $1.00, now over $17.
http://finance.yahoo.com/q?s=frpt&x=0&y=0
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Working Capital
As we all know, the one stumbling block for TTCM is adequate working capital. They have the technology, the product, the signed contract backlog ($117M). Adequate working capital is the only thing preventing them from busting out from a $10M Revenue company to a $40 or even $50M Revenue company.
We also know that TTCM China Founder Mr. Wang JiQun was Appointed as Vice Chairman of Greater TianJin BoHai Holding Company Group, Ltd. We also know that Greater TianJin BoHai Industry Investment Fund was actually started in January 2007. The stated purpose of the Fund is: The Bohai Industry Investment Fund will mainly finance innovative manufacturing enterprises and transportation and energy projects in Binhai New Area and the areas around the Bohai Bay, which covers Beijing, Tianjin, Shandong and Liaoning provinces and other nearby areas.
As we suspected, the ability to obtain Funding is China is very difficult. I believe it was stated that the number of American companies that obtained such direct Financing was about 80%, companies in China was about 4%. TTCM needs about $5M to $10M to work through their backlog. The Investment Fund was launched with six billion yuan (770 million U.S. dollars).
One of the factors that favors TTCM is the Founder Wang JiQun - Greater TianJin BoHai Holding Company Group connection. Another is TTCM located in TianJin. Lastly and perhaps most important, is that TTCM supplies infrastructure critical to the development and even survival of China. You will find that what PRC wants, PRC gets. We have seen the Chinese Government commitment to developing water infrastructure in the Blueprint of their 11th 5-Year PLan.
The odds look pretty good that the BoHai Industry Investment Fund might be a practical source for the working capital that TTCM needs to propel the company to new heights. That would produce much excitement and prosperity for TTCM.
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Seeking Financing
trader rogue
I have only been here a few weeks, but the shortage of working capital has been mentioned for a long time, at least several years. The 2005 Revenues were less than 2004, the reason given was that Revenues were restricted due to shortage of working capital.
Yes, the working capital shortage is the prime issue for TTCM. It would seem that if they can get the funding, they could start doing $40m, or $50M or even $60M Revenue years and position the company for explosive growth.
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BioFuel Is Being Produced
From RagingBull:
By: zardiw
24 Mar 2007, 05:13 PM EDT
Msg. 5742 of 5798
(This msg. is a reply to 5725 by ezzmoney1.)
Jump to msg. #
They are already PRODUCING. Biofuel is being produced. It is also being independently tested in many ways, in preparation for use in turbines, diesel engines, and gasoline engines.
Reactors can be assembled in a rapid fashion, since they are modular in design.........z
http://ragingbull.quote.com/mboard/boards.cgi?board=USSE&read=5742
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Bush, Auto Execs to Talk Flex-Fuel Cars
Sunday March 25, 9:27 pm ET
By Ken Thomas, Associated Press Writer
Bush to Discuss His Support for Flex-Fuel Vehicles in Meeting With U.S. Auto Executives
WASHINGTON (AP) -- President Bush is getting at look at U.S. automakers' latest advances in alternative fuel vehicles as the companies press the case that ethanol and biodiesel blends can help reduce the nation's reliance on foreign oil.
Bush scheduled a White House meeting Monday with General Motors Corp. chairman and chief executive Rick Wagoner, Ford Motor Co. chief executive Alan Mulally and DaimlerChrysler AG's Chrysler Group chief executive Tom LaSorda.
The focus is on Bush's support for flexible-fuel vehicles, which are capable of using gasoline and ethanol blends, and his administration's plan to cut gas consumption by 20 percent in 10 years.
The three auto leaders have pledged to double their production of flexible fuel vehicles to about 2 million a year by 2010.
Automakers intended to stress that they could make half of their cars and trucks capable of running on alternative fuels by 2012 if there is enough availability and distribution of E85, an ethanol blend of 85 percent ethanol and 15 percent gasoline.
"If the production and distribution of ethanol can match the volumes that we've committed to building, there's an opportunity to significantly reduce gasoline consumption within our grasp," GM spokesman Greg Martin said.
Industry officials note that only 1,100 of the nation's 170,000 fueling stations offer E85 and have argued that the distribution system is critical to getting more vehicles running on alternatives.
Bush planned to inspect some flex-fuel vehicles on the South Lawn following the meeting: GM's flex-fuel Chevrolet Impala running on E85; Ford's Edge HySeries, a concept plug-in hydrogen fuel cell; and DaimlerChrysler's Jeep Grand Cherokee diesel filled with B5, a biodiesel blend.
The president toured a GM plant in Kansas City, Kan., and a Ford plant in Claycomo, Mo., last week, promoting the benefits of hybrid vehicles and other alternatives. Bush has sought higher fuel efficiency standards for cars, but auto industry officials said they did not expect to raise their concerns about the proposal.
Wagoner, Mulally and LaSorda told a House committee this month that raising fuel economy standards by 4 percent a year, under a White House plan, would be expensive and challenging.
Automakers have been resistant to swift fuel economy increases imposed by Congress, but have backed higher standards if they are put in place following a review by the Transportation Department.
"The most important thing is to continue to bring on alternative fuels and to continue to make the vehicles more efficient," Mulally told reporters in Washington this month. "But legislating the number on just fuel mileage is not going to get the benefit that we want."
http://biz.yahoo.com/ap/070325/bush_automakers.html?.v=2
USSE BioFuel Analysis
Summit Environmental Technologies, Inc. Biofuels Laboratory Report
Scientific analysis of properties and qualities of the liquid biofuel USSEC produces.
http://www.maximuscommunications.com/set_report.pdf
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More Bohai Industry Investment Fund
China's first industry investment fund launched in Tianjin
Wednesday,January 03,2007 Posted: 16:05 BJT(0805 GMT) th
China's first industry investment fund of six billion yuan (770 million U.S. dollars) was inaugurated in Tianjin, a north China economic center, on Saturday.
The Bohai Industry Investment Fund will reach 20 billion yuan within 15 years and provide easy access to funding for small businesses and firms in the modern, manufacturing and high-technology fields.
The first phase of six billion yuan was jointly funded by six domestic financial institutions and companies, including the National Council for Social Security Fund of China, BOC International (China) Limited, TEDA International Holding Co., Ltd., the Postal Savings Bank of China, China Life Insurance Company and Tianjin-based Jinneng Investment Share-holding Co., Ltd..
They invested one billion yuan each.
The Bohai Industry Investment Fund will initially finance mainly innovative manufacturing enterprises and transportation and energy projects in the Binhai New Area of Tianjin and other areas around the Bohai Bay, including Beijing, Tianjin, Shandong and Liaoning provinces.
The Binhai New Area is a national pilot reform base listed in the country's development plan for 2006 and 2010. The government is endeavoring to turn the area into its third economic base after Shenzhen and Shanghai's Pudong.
Economists and experts said the establishment of the Bohai fund indicated China was stepping up the development of industrial investment funds and exploring new channels for direct fund raising.
Currently, the proportion of direct financing stands at less than 10 percent and is done through a few channels including the stock market, issuance of corporate bonds and short-term fund-raising bonds.
Many enterprises have to scramble for bank loans.
With money raised indirectly, enterprises would suffer a high ratio of liabilities, heavy financial burdens, low innovation capabilities and weak capabilities to hedge risks, said Dai Xianglong, city mayor of Tianjin.
The Bohai fund was a low-cost but efficient channel for fund-raising for firms that face difficulties in obtaining bank loans, experts said.
Industry investment funds would also diversify investment channels for Chinese citizens whose combined bank savings totaled 1.4 trillion yuan and who could only invest in the stock market and buy state treasury bonds, said Meng Hao, head of the International Financial Research Center under the Tianjin University of Finance and Economics.
More industry investment funds were expected to be launched, said Dai, adding they would drive the drafting of Chinese law in this field.
Other industrial funds, including energy industry investment funds, have applied for licenses.
Dai said the Bohai Industry Investment Fund would be included in the scheme of comprehensive reforms in the Binhai New Area and would be further developed.
The Bohai Industry Investment Fund Management Company, with a registered capital of 200 million yuan, was also inaugurated on Saturday to oversee the use of the Bohai fund.
The National Development and Reform Commission gave the go-ahead to the establishment of the fund in December last year.
http://th2.mofcom.gov.cn/aarticle/chinanews/200701/20070104208928.html
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Bohai Industry Investment Fund
China’s first industry investment fund launched in Tianjin
enorth.com.cn 2007-01-05 17:26
(Enorth.com.cn)The Bohai Industry Investment Fund, which involves a limit of 6 billion yuan (US$770 million) in the first phase, was inaugurated in Tianjin, a north China economic center, on Saturday. It is China's first industry investment fund.
The Bohai Industry Investment Fund Management Company was also inaugurated on Saturday under the approval of the State Council, China’s cabinet, the National Development and Reform Commission (NDRC) and the Ministry of Commerce.
A symposium on industry investment fund was held before the inauguration. Mayor of Tianjin Dai Xianglong, Vice Mayor Huang Xingguo, Director of the Administrative Committee of the Binhai New Area Pi Qiansheng, Vice Mayor Cui Jindu, Chairman of the National Council for Social Security Fund Xiang Huaicheng, Deputy governor of the People‘s Bank of China Wu Xiaoling, President of Bank of China Co Ltd Li Lihui, Chairman of Bank of Communications Co Ltd Jiang Chaoliang and Secretary General of the NDRC Han Yongwen attended the symposium. Relevant departments and experts in the financial sector also attended the conference and discussed over the establishment of the industry investment fund and its future prospects.
As early as in May, the port city of Tianjin finally won the central government's approval for its development zone dubbed "Pudong of North China" by international investors. In a statement released by the State Council, Binhai New Area was officially designated an experimental zone for comprehensive reform, with a short-term emphasis on financial and allied services. The government allows Binhai to pilot key reforms related to financial services and the capital market, and to be more open to international business development. Experimental schemes may also cover areas of venture capital, foreign exchange administration and offshore banking. The launch of the Bohai Industry Investment Fund is a move to promote comprehensive reforms in Binhai New Area.
A new means of equity investment
The State Council and the NDRC gave a go-ahead to the establishment of the Bohai Industry Investment Fund in December, 2005. Tianjin has drawn on the experiences of foreign countries in this regard and created a new equity investment model and channel. The establishment of the fund is of great significance in deepening financial reforms and promoting economic development of the country. Firstly, its equity investment as well as management and custodian mode accord with international practices, creating favorable conditions for the formulation and release of management methods of the industry investment fund. Secondly, its trial run will be conducive to deepening financial reforms, enlarging equity investment and ameliorating the structure of capital use to improve the efficiency in capital use of the whole society. Thirdly, industry investment fund which will be used to finance well-operated enterprises will help readjust economic structure, transfer economic growth mode and support innovations in technologies and organizations of enterprises.
Investment portfolios
The Bohai Industry Investment Fund will reach and be capped at 20 billion yuan within 15 years. The first phase of 6 billion yuan were jointly invested by leading domestic financial institutions and companies including the National Council for Social Security Fund of China, China Development Bank, Postal Savings Bank of China, Tianjin-based Jinneng Investment Share-holding Co Ltd, BOC International (China) Limited, China Life Insurance (Group) Company, China Life Insurance Company Limited and the Bohai Industry Investment Fund Management Company. General assembly of mutual fund holders is the top authoritative institution, which makes decisions on major issues like the selection of an asset management company and bank to serve as custodian and trustee. The Bohai Industry Investment Fund will mainly finance innovative manufacturing enterprises and transportation and energy projects in Binhai New Area and the areas around the Bohai Bay, which covers Beijing, Tianjin, Shandong and Liaoning provinces and other nearby areas.
Fund management company
The Bohai Industry Investment Fund will be managed by the Bohai Industry Investment Fund Management Company. With a registered capital of 200 million yuan, the Bohai Industry Investment Fund Management Company was established by all investors of the Bohai fund, among which BOC International (China) Limited and Tianjin TEDA Investment Holdings Co are main shareholders. The fund management company was registered in Binhai New Area. President of Bank of China Co Ltd Li Lihui serves as chairman and Ou Wei, a Hong Kong resident appointed by BOC International (China) Limited serves as president. The company will set up a modern enterprise system with an effective risk control system, high quality management team and motivation system to pursue good investment returns for investors and build itself into a noted industry investment fund management company in China.
BoCom as custodian
The Bohai Industry Investment Fund has selected Bank of Communications (BoCom) to serve as custodian. BoCom is one of China’s commercial banks which can provide the investment fund custodian business. To effectively arrange the fund assets and control of its operation, BoCom has set up a special supervisory mechanism and capital settlement and payment system in accordance with characteristics of industry investment funds. The arrangement of fund custodian is part and parcel of the operation of the industry investment fund which is of great importance in ensuring independence of its assets, realization of power balance and prevention of investment risks and safety of its assets.
First of its kind
The Bohai Industry Investment Fund is China's first industry investment fund, which involves a great amount of money (exceeding US$1 billion). The fund which will be entirely market operated is the country’s first industry investment fund for institutional investors.
http://english.enorth.com.cn/system/2007/01/05/001509956.shtml
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World Water Crisis
A map showing and detailing some of the world's water flashpoints. Also a short article with an overview of the world water crisis. One out five people, already do not have access to safe drinking water, that is a crisis.
http://news.bbc.co.uk/hi/english/static/in_depth/world/2000/world_water_crisis/default.stm
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USSE BioFuel Analysis
Summit Environmental Technologies, Inc. Biofuels Laboratory Report.
Scientific analysis of properties and qualities of the liquid biofuel USSEC produces.
http://www.maximuscommunications.com/set_report.pdf
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TTCM Valuation
Anyone want to speculate what will happen to the share price if TTCM China gets financing on favorable terms?
I will take a shot at that. With sufficient working capital, TTCM could still do $30 M Revenue in 2007. The $117 M contract backlog is there. Using conservative numbers:
Net Profit Margin = .07
Fully diluted shares = 65 million
PE Multiple = 12
$30 M Revenue:
$30 M * .07 = $2.1 M Net Profit
$2.1 M / 65 M shares = $0.032 Earnings Per Share
$0.032 * 12 = $0.38
$0.38 Share Price by end of 2007
p.s.
The share price would probably be higher, because investors could foresee 2008 and 2009 Revenue of $40 M to $50 M. Sufficient Working Capital is all that this company is lacking, and would position TTCM for outstanding future growth.
TTCM Fact Sheet
Due to the Pink sheet status, I use the word "Fact", loosely, but to the best of our knowledge, here is what we now know about TTCM.
Positives:
1.) TTCM China has proprietary technology that is in high demand in a rapidly growing field
2.) Makes the highest quality pipe in the industry. (with patents)
3.) Has a competitive advantage over other companies.
4.) Supplies 30% of the industry and is emerging as the industry leader in plastic piping.
5.) Demand for plastic piping is currently almost unlimited.
6.) TTCM can sell all the plastic pipe they can make and install.
7.) Fully Automated 100,000 Sq. Foot Manufacturing facility.
8.) Ability to manufacture pipes locally.
9.) Pipes range from 4 foot to 12 foot in diameter.
10.) ISO 9002 Certified Approved.
11.) 300 employees.
12.) Chairman and Founder Mr. Wang JiQun Appointed as Vice Chairman of Greater TianJin BoHai Holding Company Group, Ltd..
13.) Authorized Shares is 100 M.
14.) Outstanding Shares about 65 M.
15.) Insiders own about 50 M.
16.) Float about 15 M.
17.) Improving Balance Sheet.
18.) 2006 reduced short term debt $2.5 M
19.) Little short term debt.
20.) No long term debt.
21.) No convertibles or toxic financing.
22.) More than $32 Million in Assets.
23.) Shareholder Equity in excess of $10 Million.
24.) Credit Rating - AAA
25.) Company has been profitable for the last 3 years
26.) Previous best year was Revenue of $9.7 M.
27.) Current Signed Contract Backlog of approximately $117 M.
28.) 2007 could be a breakthrough year for TTCM.
29.) Market Cap is under $2 M.
Negatives:
1.) Pink Sheet Stock, but BB Listing is a goal.
2.) Working Capital Shortage.
3.) Website not updated in 2 years?
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Natural Gas OPEC Forming
Tuesday, March 20, 2007
Dear Green Chip Review Reader:
Mark your calendars for Monday, April 9. Highlight it with a big X. Or better yet, write R.I.P. in it.
That's when Green Chip Review will officially eulogize the end of "cheap gas."
You see, on that day, something we've been telling you about for months will finally come true:
The leaders of Russia, Iran, Qatar, Algeria and Venezuela will meet in Doha, Qatar to form a "Natural Gas OPEC."
Yes, you're reading that correctly. The OPEC for gas will be formed.
According to the Russian news source Kommersant . . .
"Kommersant has learned that last week some of the world's leading natural gas exporters reached a final agreement on the creation of a so-called 'gas OPEC.' The consortium of gas-rich countries, which at the moment includes Russia, Iran, Qatar, Venezuela, and Algeria, is due to be formally organized in the Qatari capital of Doha on April 9. The appearance of such a powerful player in the energy arena will undoubtedly meet with an extremely negative reaction from the United States and the European Union." --March 19, 2007
My friends, it's over. Finito. Caput. These guys will control 70% of the world's natural gas supply . . . and they won't think twice about jacking up the price.
And if you think I'm exaggerating, think again.
In a newly-minted memorandum , the Army's assistant chief of staff for installation management is more worried about natural gas than oil, saying . . .
"Current Army assumption is that natural gas may cease to be a viable fuel for the Army within the next 25 years based on price volatility and affordable supply availability."
Regards,
Brian Hicks
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PLRO IR
Look back on this message board. I used to be the biggest PLRO supporter. I spent some time researching PLRO and giving them exposure. Market Direct was aware of me, and quickly answered any questions that I had. This all changed after the alleged March 1 Shareholder Meeting. Was there a March 1 Meeting? Was the vote yes? Was the vote no? Nobody knows and they are not saying.
I contacted PLRO IR over a couple dozen times, using several different numbers and Email addresses. I left messages on the answering machine of Ms. Pineda (technically current CEO and CEO of Noth Tech) I tried numbers that were supposed to go directly to Mr. Jaeger (PLRO CEO). Their IR answers the phone in a polite way, but then nothing happens. They admit that they do not know anything. I started getting very emphatic, I even threatened to contact the SEC, because investors can not get any kind of response. They merely take my name and phone number, and will call. It never happens.
I had 2 questions that needed to be addressed. The multiple Listings on German Exchanges, where they can naked short stocks to death, and the possibility of the Merger not happening, and the stock reverting back to North Tech, which was probably valued under $0.10. In my opinion, no PR about the results of the March 1 Meeting, is a lack of Fiduciary Responsibility by PLRO. Due to their unresponsiveness, I sold all my PLRO at a significant loss, and I place the blame on PLRO and I am not happy about that. It should never have happened.
I urge all investors to keep all their records of trying to correspond with this company. The SEC has had a recent crackdown on companies that spam their stock.
IMHO
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Financials Observations
Looking over the 2006 Numbers, there are 2 observations, glaringly apparent.
1.) Revenues only increased 10% from a Revenue limited 2005. Due to the recurring theme of working capital shortage.
2.) Even with similar Revenue, Net Profits reduced substantially. However, we must remember that during 2006 TTCM reduced their Short Term Debt by $2.5M.
Once again, it appears TTCM was limited due to a working capital shortage. This is the frustrating part with this company. They have the product, they now have signed contracts with a backlog of at least $117M. One thing is for sure, a 2007 with below 10M Revenue, will not get the job done. $117M/$10M would take 11.7 years to get rid of their backlog (with no new contracts). At that rate, TTCM would eventually lose some of those contracts, due to cancellation. I still maintain that they need several $40M Revenue years to complete their backlog (117/40 = 2.9 years) in a timely fashion. $40M is achievable with adequate financing.
Today's PR does say "We are currently looking into several financing options to enable us to realize the revenue in 2007". When a company is new or does not have any signed contracts, a lack of working capital makes sense. However, TTCM now has a considerable backlog of contracts, it should be much easier to obtain the funds needed. I suspect that venture capital is just not readily available in China. We need to remember that it has just been a few years since China opened up their economy, and banks and investors just do not have the venture capital, and free market experience comparable to the U.S.. I would imagine that the U.S is their best bet to raise funding, I hope Mr. Choe is pursuing that avenue. Further evidence of the need for foreign funding is being listed on an American Exchange.
Overall, pretty decent numbers. Probably better than we should have expected. Revenue would have increased greater than the 10% if they had the working capital. Net Profit went down, but they greatly reduced short term debt, and improved the balance sheet.
TTCM has their ducks in a row. Now, if they can just get the working capital, this can easily be a $0.50 stock.
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New Pics Are Coming
According to other Message Boards, work is taking place on the other 3 reactors, and Diversified is moving to Natchez. Here is a post from Investorsvillage, the poster seems fairly reliable:
Msg: 156 of 164 3/20/2007
I have found out Diversified is currently building there plant in Natchez as we write, it was confirmed today. Last week all their equipment headed south to Natchez. Diversified & U.S. Sustainable Energy will be producing the cheapest ethanol ever made, by using the technology of USSEC.
There has been a photographer at Natchez taking pictures, soon we will have updated photos.
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The Raw Numbers: Amended
Sorry folks, but this is so significant, that it just had to be amended. It is amended in 2 places. The numbers are all the same, just had to mention that in 2006, TTCM reduced Short Term Debt by $2.5 M. This completely changes the face and perspective of 2006 TTCM Financials. Much more positive than previously thought.
Here are the 2006 Financials released today:
2006
Revenue $7.5 M
Net Profit $134,549
(During 2006 TTCM Reduced Short Term Debt $2.5 M)
Historical Financials for Comparison:
2004
Revenue $9.7 M
Net Profit $497,530
2005
Revenue $6.9 M
Net Profit $578,598
(The Company's revenues decreased in 2005 due to a working capital shortage).
========================================================
Another perspective
2004 Revenue $9.7M
2005 Revenue $6.9M
2006 Revenue $7.5M
2004 Net Profit $497,530
2005 Net Profit $578,598
2006 Net Profit $134,549
(During 2006, TTCM Reduced Short Term Debt $2.5 M)
http://biz.yahoo.com/iw/061121/0186970.html
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The Raw Numbers
Here are the 2006 Financials released today:
2006
Revenue $7.5 M
Net Profit $134,549
Historical Financials for Comparison:
2004
Revenue $9.7 M
Net Profit $497,530
2005
Revenue $6.9 M
Net Profit $578,598
(The Company's revenues decreased in 2005 due to a working capital shortage).
========================================================
Another perspective
2004 Revenue $9.7M
2005 Revenue $6.9M
2006 Revenue $7.5M
2004 Net Profit $497,530
2005 Net Profit $578,598
2006 Net Profit $134,549
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CEO's Own Words
an old investor
This is probably the most pertinent paragraph from JR's Blog:
"While we have looked at alternative methods to merge the companies together, ultimately we risked potential delays or caveats that could have caused shareholders to see their free trading shares in U.S. Sustainable become converted to restricted stock. In no scenario was this acceptable or approvable by USSEC or myself, and our valued shareholders and supporting investors will always come first within our strategic direction.".
http://www.jhrivera.com/
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Correct Answer
an old investor
At present this board is controlled by persons with little capacity for DD and rationality. Rather than common sense, they seek instant gratification.
The CEO of USSE answers your question in his personal Blog:
http://www.jhrivera.com/
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Vidalia Demo
It already has, just open your eyes.
http://www.ussec.us/research-20.html
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2006 Financials
TTCM China Announces Full Year 2006 Results
Tuesday March 20, 11:00 am ET
TIANJIN, China--(BUSINESS WIRE)--TTCM China, Inc. (Pink Sheets:TTCH - News), a leading producer and supplier of glass-reinforced fiber plastic pipes, today announced 2006 earnings results. Revenue for the year ending December 31, 2006 was $7.5 million versus revenue of $6.9 million for the year ending December 31, 2005. Net profit after taxes for full year 2006 was $134,549 versus net profit of $578,598 in 2005.
Despite strong demands for the company's products as evidenced by a growing backlog, the Company's revenue growth in 2006 was approximately 10% primarily due to a working capital shortage. TTCM China is currently trying to negotiate with several parties to obtain new lines of equity. If and when the cash infusion is completed, TTCH China expects to begin filling the outstanding orders.
Mr. Jiqun Wang, Founder and Chairman of TTCM China, said, "We are pleased by the demand for TTCM China's products and are focused on fulfilling orders in 2007 and beyond. We are currently looking into several financing options to enable us to realize the revenue in 2007."
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USSE Blog
http://www.jhrivera.com/
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Was Not Fulda
Sorry to shatter your illusions, but it was not Fulda who dropped this deal. Pure Romance had a change of heart. I know this for a fact, because Mr. Cicchinelli, Patty Brisben's son and the Executive Vice President personally returned my phone call, several days after the termination was announced publicy. He basically just said "that the timing was not right".
Read post # 736 for more details.
Hopefully, Mr. Fulda has another deal lined up soon. In the menatime, UVCL is on Fire Sale.
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Pipe Manufacturing Locally
I was reviewing some of the PR's and found another piece of interesting information that could have huge implications. From the Janaury 17 GuangXi Province Project PR:
"Manufacturing equipment has been shipped for local manufacturing from Tianjin and manufacturing site lease agreement is in progress".
I am very pleased to see this, as this could have far-reaching benefits. It sure does sound like TTCM has leased a manufacturing plant in the GuangXi Province area, they have shipped some of their manufacturing equipment there, and is locally producing the piping needed for the project. This and several other recently signed contracts are located in Southern China. I am no expert in Chinese geography, but I know that Tianjin is a suburb of Beijing, and believe it in North East China. China is a huge and vast country. Production of piping locally, should reduce logistical limitations and not add any unreasonable expenses and thus reduces company costs.
I was not really aware that TTCM had this ability. The viable option to lease manufacturing facilities locally as needed, makes TTCM a much more flexible and expandable company. This also reduces and/or eliminates many logistical problems. It also verifies their plan of International expansion. They have PR'd about inevitable expansion in the International market space, TTCM has established business relationships with customers in Singapore, Kuwait, Iraq, Afghanistan, and South Africa, and developed fruitful technical exchanges and business connections with them. They have also discussed Operations with The United States. Due to this flexibility of local manufacturing, we can now see how this International expansion is entirely viable and realistic. TTCM has the ability to produce it's piping locally, so location is not a limiting factor to their Expansion.
This should also enable TTCM to easily increase their capacity and comfortably handle and accommodate in a timely fashion, any size of contract backlog. Again, TTCM has the ability to handle and complete in a timely fashion, any size backlog. 2 manufacturing plants operating, quickly and efficiently increases their capacity. Potentially, TTCM could even possibly enter into multiple leasing agreements, end up with 3, or 4, or even 5 manufacturing plant agreements!, whatever they deem necessary. This is very good and exciting news, location is not a limiting factor to the future expansion and success of TTCM.
In the future we should be seeing $40M, $50M or even $60M, or higher Revenue producing years for TTCM.
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TTCM China Announces Founder Mr. Wang JiQun Appointed as Vice Chairman of Greater TianJin BoHai Holding Company Group, Ltd. to Develop Key Regions in China
Wednesday December 6, 9:18 am ET
MOUNTAIN VIEW, CA--(MARKET WIRE)--Dec 6, 2006 -- TTCM China, Inc. (Other OTC:TTCH.PK - News), a leading producer and supplier of glass-reinforced fiber plastic pipes for water supply, sewer systems and flood control, today announced that the company's Chairman and Founder, Wang JiQun, has been appointed as the Vice Chairman of the Board of the Greater TianJin BoHai Holding Company Group, Ltd., one of the largest privately owned development companies in China responsible for overseeing the construction and development of privately owned enterprises in three key major regions: TianJin and TangShan cities of HeBei Province (population 68+ million), the QingDao City region of Shandong Province (population 91+ million), and the DaLien City region of LiaoNing Province (population 40+ million). With the participation of the central government, TianJin BoHai Holding Company Group is making great contributions to the development of key regions in China. It is expected that TTCM China will be an integral part of these development projects.
Mr. Wang JiQun, Founder and Chairman of TTCM China, said, "This is indeed a great honor and privilege to be recognized by the central government and appointed as the Vice Chairman of the Board of Greater TianJin BoHai Group Holding Company, Ltd., to develop these key regions of the country. We recognize that with a combined population of more than 200 million, there is great demand in these regions for further development and improvement. TTCM China, Inc. will be an integral part of future development projects. Because our pipes are more lightweight and cost efficient, they are suitable for large-scale projects such as those required in these areas, and based on our ability to provide suitable cost-effective solutions, expect to see growing momentum in 2007 and into 2008 to meet the tremendous demand for clean water delivery and flood control systems in China."
http://biz.yahoo.com/iw/061206/0191631.html
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Most Significant PR
The Dec. 6 PR , announcing that Chairman and Founder, Wang JiQun, has been appointed as the Vice Chairman of the Board of the Greater TianJin BoHai Holding Company Group, Ltd., has to be the most significant and important news ever for TTCM. Now the TTCM Chairman is on the Board of Directors of one of the largest private companies in China that is working with the Chinese Government to develop infrastructure in China. It is stated in the PR that TTCM will be a integral part of future development projects.
It has been posted and well documented here, of the water infrastructure crisis in China. It was also documented here that through it's 11th 5-year plan and beyond, PRC will address the crisis with development projects.
We have seen evidence of this already, as since this PR, in just one quarter, TTCM announced signed contracts of $54 Million (not counting the $15.4M Hami Prefecture). Their current contract backlog is about $117M. Thanks in large part to this new relationship with Greater TianJin BoHai Holding Company Group, Ltd., and the Chinese Government, it is not hard to project future contracts of between $75M and $150M per year for TTCM. 2007 is a Breakthrough year for TTCM.
It is so important, that following this post is a post of the actual PR.
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Re: Lubricity Of The BioFuel
You have no clue how long such tests would take. You might conclude otherwise, but quit trying to put words into the mouths of longs that have done DD. That tactic is getting old.
When the time is right, I am sure they will perform such tests. Other priorities are being done.
The evidence is in the Vidalia Demo, watch it and learn, or keep your head in the sand, your choice.
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Lubricity Of The BioFuel
"USSEC's Biofuel numbers are excellent, the BTU's are very close to diesel, but the cetane rating is better which produces cooler running temperatures".
The cooler running temperatures of USSE BioFuel is an impressive and useful attribute. Another quality that I never hear mentioned, is the Lubricity of the BioFuel.
In the Vidalia BioFuel Demo, while demonstrating BioFuel in a 2 Stroke engine, JR Says "this 2 stroke engine is designed to run on a gasoline and oil mixture, we did NOT put any oil in this engine, it is running on the Lubricity of the BioFuel alone". (In the Demo, this is the first engine tested, the 2 stroke red scooter).
So, an engine was tested with JR juice and no oil whatsoever. The implications of this could be huge. At this moment the U.S. Congress is debating whether or not to increase automotive fuel economy standards. It is a little known fact that the main additive in engine oil, ZDDP (used for 50 years) performs it's lubrication "magic" by increasing friction. Naturally, the side effect of this increase in friction is reduced fuel economy.
Tests need to be done. However, it is very possible that the USSE Biofuel actually reduces engine running temperature and increases fuel economy. Amazing stuff.
Vidalia Demo:
http://www.ussec.us/research-20.html
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Lower Or Higher?
"does any one think this is going lower or will it soon pop??"
No one really knows what the price will do soon. Stocks are not always efficiently priced. However, a well worn truth is that in the short term, a stock can be temporarily overvalued or undervalued, but long term, stocks tend to reach their true and fair value.
So what is the picture? The best year for TTCM amounted to $10M Revenue. They currently have a contract backlog of about $117M. To finish their backlog in a timely manner, they need to start doing $40M or $50M annual Revenue. A reasonable number for 2007 is $30M Reveune (triple their current best year) with more Revenue increases in the future.
Where do you see the share price going?
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Current Water Infrastructure
Here are more current (March 2007) articles on China's water infrastructure crisis. The water shortage might not be solved for decades, if ever.
No Water, Relocate Beijing?:
http://www.chinadaily.com.cn/china/2007-03/12/content_824955.htm
Water being trucked to villages in parched SW China:
http://www.chinadaily.com.cn/china/2007-03/16/content_829894.htm
Clean water for 300 million rural people in 10 years:
http://www.chinadaily.com.cn/china/2007-03/10/content_824626.htm
Unsafe water tops environment fear :
http://www.chinadaily.com.cn/china/2007-03/13/content_826009.htm
Drought deprives Chinese of drinking water :
http://www.chinadaily.com.cn/china/2007-03/04/content_818986.htm
Securing water a key priority for Gansu :
http://www.chinadaily.com.cn/china/2007-03/09/content_823315.htm
China's Yellow River running low:
http://www.chinadaily.com.cn/china/2007-03/12/content_825308.htm
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New JRivera Blog
http://www.jhrivera.com/
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WallSt.net-USSE Interview
U.S. Sustainable Energy
WallSt.net Audio
Robert Davis
Chief Executive Officer
http://www.wallst.net/audio/audio.asp?id=3149
(Currently the featured company, if not then go to Interviews)
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China Water Infrastructure
Below are several links about China's Water Infrastructure. There are many more such links, the list goes on and on, but this small list gives one insight to the water situation in China. Some are dated back to 2003, but a problem this huge takes many years to address. This should help investors understand that there is almost an unlimited demand for the products and services of TTCM.
Water-saving More Urgent Than Ever:
http://www.china.org.cn/english/2005/May/127853.htm
Water Supply and Demand Imbalance Sharpens in China:
http://www.china.org.cn/english/2003/Sep/76069.htm
Higher Prices on Tap for Urban Water Supply:
http://www.china.org.cn/english/environment/72777.htm
Beijing Water Supply Enough for 10 Months Only:
http://www.china.org.cn/english/environment/74769.htm
Beijing Faces Long Term Water Shortage:
http://www.china.org.cn/english/2003/Aug/73647.htm
China's 'Mother River' Thirsty for Revitalization:
http://www.china.org.cn/english/environment/62537.htm
Yellow River Faces Water Shortage:
http://www.china.org.cn/english/2003/Feb/55488.htm
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