gnolf is the play
current trading price, .98
My one-year price target: $50 (fifty dollars. yes, you read me right).
My reasoning...
Genoil has exclusive (as of today PATENTED) revolutionary crude oil clean-up technology that the world's MAJOR oil producers are circling like great white sharks around bloody tunas right now, including China's biggest producer and Lukoil in Europe.
Genoil receives the barrels of oil that the world's producers generate and through their technology -- a key component of which is ADDING hydrogen -- they are able to make 110 percent of it usable light synthetic oil.
Is 110 percent a cliche in this case? NO! The adding of hydrogen and total cleaning of every ounce of oil -- even the darkest "PITCH" oil that previous technology required refineries to simply throw away, plus the added hydrogen means Genoil actually gives back to the oil producers MORE VOLUME OF USABLE OIL THAN WHAT Genoil initially received.
Genoil's CEO told this to the world in an online interview recently. He also said bids and interest are coming in faster for their company from all points on the globe right now than they can say "let's make a deal." A deal is inevitable. More than one deal is likely. (Genoil also stated that the testing with Lukoil, which sent them barrels to put through Genoil's processing techgnology last month was a complete success)
What is the revenue structure of the technology? Get this: $20 per barrel. Genoil's CEO said the Lukoil deal when and if it happens will generate a MINIMUM OF 50,000 BARRELS PER DAY TO BE PROCESSED, and could yield a per day procesing amount of up to 250 THOUSAND BARRELS. Now check my math and while you do note two very important additional factors: 1) outstanding shares = about 195 million. and 2) there is huge interest and a memorandum of understanding to build a giant genoil processing plant in China right now and my numbers below are JUST FOR THE LUKOIL DEAL... do it with me... $20 per barrel times 50,000 barrels per day equals $1 million revenue per day, times 365 days in the year = revenue of a minimum 365 million. In the online interview, GEnoil's CEO said the profit margin on the 20 bucks a barrel is very high -- LET'S FOR ARGUMENT SAKE SAY GENOIL POCKETS HALF THE $365 MILLION AS NET INCOME FOR THE YEAR -- 180 milllion per share net income, that is nearly one dollar per share net income and at a PE of JUST 5 YIELDs a price per share of $5. Ok, now consider China... consider too that Genoil may do business with Lukoil to the tune of 250 thousand barrels per day.... let's say a year from now these deals are signed (and why shouldn't they be? Everybody wins in these deals--Lukoil, China, Genoil, and whatever other oil producers jump aboard because GNOLF's processing 100 percent of the crude, including of the pitch, and throwing nothing away, plus they're adding hydrogen in an environmentaly-friendly way -- another of GNOLF's major sales points by the way is the green-friendly aspect) and the fact they come out with MORE volume of product than what they started with! )If, as the Genoil CEO alluded to, they up the Lukoil deal to closer to 250,000 barrels per day -- then say the China deal kicks in, more autmobile usage in China every day, right??? IT IS NOT OUT OF THE QUESTION THAT WITHIN A year or two THIS COMPANY COULD BE PROCESSING 500,000 BARRELS OF OIL per day!
Now here's the math that is keeping me awake night's and has since I went all-in last week at .72 cents per share:
-- 500K times $20 = $10,000,000 per day (TEN MILLION)
-- 10 million bucks times 365 days per year = $3,650,000,000 (three billion, six hundred fifty million).
Let's say half of that is net income = $1.8 BILLION,
-- $1.8 billion divided by the no. of outstanding GNOLF shares, or 195 million = $9.20 per share net income! Times a price to earnings ratio of 5 = $46 per share. Times a PE ratio of 10 = $92 per share, and so on...
Is GNOLF a good risk-to-reward buy at a buck here?
Look at the chart right now and YOU TELL ME!
Mark this post, baby!
Signed,
johnnyc2006,
(the guy who posted SUWN as the buy on RB on Dec. 28, 2005 at .23).
