I like this company. I've been holding some shares for a while just to keep an eye on it. I'm looking for the right time to jump in to buy more. It looks like maybe that time is getting close.
I think as they scale up their operations, the relative cost to make the gas will go down, and they'll eventually start to make a profit. Their revenues are already on track to probably at least double year over year. I see them taking over most of the acetylene market eventually. The cost of gas is insignificant to a big metal cutting operation where time is the bigger cost. If they can save metal workers in places like ship yards half of the time involved in cutting steel with this hotter-burning gas, people will be happy to pay a premium price for this gas. They probably have to sell it at a discount until they get everybody hooked on it. But once everyone makes the shift, it seems unlikely that anyone is going to go back to the slower burning acetylene. Acetylene has always had a lot of its own problems too. I remember about five years back a giant acetylene plant exploded (in Kentucky I think) and there was a huge shortage of acetylene across the country. Some welding gas supply places just said, "sorry we don't have any and we're not sure when we can get it". So people were forced into trying out other gases. I think the armed forces would love to have a much more reliable source of cutting fuel than relying on the old standard acetylene. Acetylene is also difficult to store. They have to dissolve the acetylene gas into liquid acetone in the cylinders to stabilize the unstable acetylene, and it also has to be stored at much lower pressures than other gases can be stored at. So I really like this company and plan to invest more into it when it looks like the time is right. Their patents are likely to be licensed for various other uses that they haven't even thought about yet. They also don't need to necessarily go into production themselves as they expand, because they can set up partnerships with other companies to produce, store, and distribute it for them through existing acetylene distribution channels. By getting other companies to partner with them, they don't have to tie up their own money so much into capital equipment, real estate, etc.
AI
