Cyclone Power Technologies, Inc. (fka CYPW)

[BuddyWhazhizname]

Hi Dickity,

First of all, let me say that I don't think this board is all that important. I see the stock hit 0.014 today, which is 40% more than when I made my first post, so it looks like the market doesn't think what's on this board is all that important either.

And I don't mean to create any heat (so to speak...). I firmly believe that efficient, small steam systems are going to be a big deal in the not to distant future. Dinosaur juice isn't going to get cheaper or more plentiful in our lifetimes.

When my dad was a teenager in the 1930s he worked on a threshing crew. A fellow with a steam tractor and threshing machine would go from farm to farm and thresh the wheat after harvest. Each farmer bound the wheat into shocks and when the threshing machine came they'd run it all through and separate the wheat from the straw.

Now here's the thing. They would run the straw into the firebox of the steam tractor. That provided the energy to run the threshing machine. Even with the horribly bad efficiencies of those old steam tractors. Today it's called "biomass". An efficient steam system would be able to do far more work with the same material, maybe 5 or 10 times as much.

Plants and trees are fantastic solar collectors. Capital and operating costs are low, and you can extract energy even when the sun isn't shining. You also don't need to send boatloads of money to people who really don't like us in order to get that energy.

The only missing link to this solution is having that efficient steam engine.

This idea has been in the back of my mind for a couple decades, and then I ran across Cyclone. I don't think the market for steam engines is worth billions, at least for a generation or two, but it is significant.

So, does Cyclone have the answer? That's what I'm trying to figure out. I guess this is officially called "due diligence". And this being a discussion forum for discussing investing in Cyclone, it seems as good a place as any to ask some questions.

I firmly believe that if the Mark 5 engine works as advertised, Cyclone will do very well. (OK, assuming it is managed competently as a business.) And so will the stockholders.

There. Now that I've made one half of the people on this board mad, let's see if I can do the same for the other half.

I'm not a financial whiz, but the 10K doesn't look very promising. It looks to me like they've maxed out all their credit sources and are printing stock to keep going. Can they keep this up for long? I wouldn't think so. Now I could be completely wrong on this, and it would be great if I am. If I'm not, they better get some cash flow fast. Really fast.

It looks like the only hope for that happening is to start selling the waste heat engine ASAP.

Right now Cyclone has first-mover advantage in the market. But once their engines show that there is a market for these things, that's going to go away very quickly. Their waste heat engine patent doesn't cover the OSU design so anyone will be able to build and sell similar engines.

You can see that Tom and I are gear-heads, first class. (Even though he is completely wrong about short run manufacturing.) Our automatic reaction to the WHE-DR design is to come up with improvements. Anyone with experience in machine design and manufacturing is going to look at it and think "I could make and sell one of those for a lot less money." And a lot of them probably will. Free Enterprise at work.

The WHE is going to be a commodity product. Once competition shows up it will be a low margin business. But, in the short term it will keep Cyclone alive so they can perfect and start selling Mark 5s. Those are protected by patent and offer high efficiency. That will make them a high margin product, and that's where Cyclone needs to be.

Let me be the first to admit I am Monday-morning-quarterbacking. I see this screaming need to get the WHE done and to market and then read press releases that Cyclone is hiring consultants on cold fusion and ISO9000 paperwork. It makes for a scream-at-the-TV moment.

OK, now the 64 dollar question is, does the Mark 5 work as advertised? If it does, this company can have a very lucrative future. If not, then not.

So here's an example. In 2011 (or maybe before) they announce to great fanfare that they are going to break the land speed record for steam cars using the Mark 5. Somebody builds a car and they promise the engine. After much delay the engine never arrives, and the partnership ends.

Cyclone then hires a race driver and issue more press releases. The create the "Performance" division. They get the rights to the design of the world's fastest car and have a professional race car builder build them one. Then more publicity about how their racer is hot-rodding the Mark 5 to really smash the speed record.

After missing Bonneville trials in 2011 due to the need to "fine tune the cutoff on the dyno" or some such, they announce they've leased the shuttle runway at Kennedy Space Center, and just need to schedule runs. 2012 rolls around and more announcements about going to Bonneville, more talk of KSC, and then running on a drag strip somewhere. All the time the engine is getting more and more powerful and showing ever better numbers on the dyno.

At the end of 2012 it all goes silent.

Just some mumbled explanation about development priorities or some such.

I'm scratching my head. Bonneville is a 5 mile run. The record is 148 mph. If they average 120 mph in a run, 2 miles per minute, the engine only needs to run for 2 and a half minutes. The KSC runway maybe a minute and a 1/4 mile dragstrip maybe 20 seconds. Doesn't seem like a lot of run time for an engine.

OK, maybe 100 hp isn't enough for the record. The record for 50 cc motorcycles is 131.5 mph. That's with a 3 cubic inch displacement engine. Let's say they get 5 hp per cubic inch. That's 15 hp. There isn't any technical reason why they couldn't break the steam car record handily with 100 hp. The full-scale version of this car has been timed at 461 mph. There's nothing wrong with its aerodynamic efficiency.

The car was built by a professional race car shop, and no one has ever suggested there was a problem with the car.

I don't know about anyone else, but this makes me really curious.

Although the 10K claims the car is sponsor supported, it's only got a few little sponsor stickers on the very back. (I'm wondering if they mean "Cyclone Performance Division" didn't pay anything for it because CYPW was the "sponsor"?) Huge money has gone into this car, along with hiring Mr. Hoyos, and it was the crown jewel at Cyclone for two years. And this investment for a company that was never flush with cash.

Then nothing.

Why?

If the reason for the car was to build public confidence in their technology, frankly it's not working very well.

If the Mark 5 works as advertised, Cyclone has a bright future and I'd like to invest. This is what I'm hoping to find out.

Anyone know what happened?

Buddy