PCT Ltd (PCTL)

[skitahoe]

There is something wrong with the numbers, you don't pay $7000 a month to lease a device that costs $50,000. Perhaps $500,000 if they're paying $7000 a month, and if the device does cost $50,000, then they've got to be paying for much more than just the unit.

Could it be that they're paying ACE, or whoever has the contract to do all the sanitizing at the hospital, that would make sense, but it would also mean that ACE would keep most of the money monthly.

$100,000 cars can be leased for under $1000 a month, of course several thousands are paid up front. I'm uncertain where the $7000 figure comes from, but I've seen that since I first invested late last year, I don't know that it's correct. Perhaps more importantly, I don't know if it represents just the unit, of 24/7 support for sanitizing the hospital as needed. Frankly $84,000 a year would be a steal for 24/7 sanitizing services, so that doesn't make sense either. It would really be important to learn what's being paid, and what's included. I don't believe the salt and any other chemicals involved are that expensive, but they may be contractually included.

I have little knowledge of all that's inside the units, I would suspect that as the volume goes up dramatically the cost per unit to manufacture it will come down substantially. If there is competition we could see reducing prices, and still could be very profitable. I do believe that eventually most of the healthcare, and many other industries required to sanitize will use HOCL to do it.

As I learned here, their are small home units available on Amazon, I expect to get one of these in the next few weeks. I do believe that PCTL, and perhaps others, will introduce units intended for smaller businesses, where the capacity of the Anahilizer isn't needed, but a high quality certified fluid is needed in lower quantity. Gyms, restaurants, etc might be perfect examples where such a unit is needed vs. routinely ordering gallon quantities of HOCL.

I do believe we need to learn more about what we have. I still believe we're in the right business at the right time, and I believe we'll be earning well over $4 million a year, but it may take some time to understand just what we have.

Gary