One shareholders take on USSE
In response to PaperProfit, Eelfland, Rebellad, Murphy and other unnamed bashers.
I have done a huge amount of DD on this company. This is the way I perceive things.
This company is the true “find”. Most pinkies make all sorts of claims, which will never be substantiated. I believe this one just might be different. As usual, in pinkie land, 99 out of 100 ‘companies’ are bogus. They are scams, pump and dumps, and are designed to fleece novice shareholders out of their money. This one is possibly the exception.
I say possible for a couple reasons:
Technology - It seems to have a viable product. You can dispel it all you want and try to probe as thoroughly as possible, but frankly, the technology is here.
The evidence (as you seem to want so badly) may not be provided to you. I call this smart business. I imagine PP that you are a ‘plant’ by 1 of three parties. It could be big oil . It could be a short selling firm. It may also be a competing company. This wouldn’t be such a dumb move on their part. If I was them and I just realized that this ‘little’ company was about to take away my bread and butter, I would plant someone here also. Their thinking would be ‘might as well stomp this company into the ground before someone actually takes notice and starts working with them.’
This leads me to another point. Thanks to your question PP about “any good uses for it”, I was pondering the different business relationships that USSE has and had to ask myself, “Why Pratt and Whitney?”. “What is their ‘play’ here?” The answers became obvious, very quickly. They are a huge defense contractor, as well as provide much of the technology that goes out of defense and into mainstream America. If I were them (me thinking, ‘like’ them) what is my play. Let’s see, if this newly developed fuel is going to be all that, we had better ‘find out more’. I am pretty sure that they also have done their DD. They would never invest their time, if it were not a viable product. What does this mean for them? Let me take a stab at it.
If they already produce turbines for airplanes ; government and private, and they can make, or already have a more fuel efficient turbine out in production, they take this new fuel and put it in, bam, even more efficient (by x amount %). That is huge. When I made mention in the past about seeing this fuel at all major airports, that’s what I was alluding to. This is a reality, and it was probably thought of , prior to me realizing it (but you made me connect the dots). As Pratt and Whitney rolls out these new turbines, USSE provides the fuel. It also makes P&W phenomenally more profitable (in book orders) because they can now offer unimaginable cost saving to the airlines and the government.
In turn, the old airplanes need to be retired because they are so grossly inefficient and guess who they will be buying turbines that power these airplanes from?
You got it, Pratt and Whitney. *See PR below for example
Now that is ‘covered’, let’s say Northwest Airlines or any other airline needs these more fuel efficient planes.
Who will provide financing for them?
GE, is my best guess! Which is why, I assume, David Crow was brought on. How easy is it to have Crow, call his old buddies at GE and ‘inform’ them of this huge new “play”. Not hard I would imagine. GE makes their money on financing of the new planes, which must be bought. Every airline will switch, they have to, just to compete for market share.
As a side note, GE didn’t ‘start off’ as a finance company originally. They made great refrigerators, but they made their ‘real’ money, in the financing of them.
This leads me into ‘the next play’, TurnKey. What a smart play that really is. They already know that this fuel does what it says it does. They can go out with one of their MobilePacs and setup for any disaster, like Katrina. But that is not their only play here. Let’s expand it further. SPC the spin-off of USSE can now, go out to anybody who is getting ready to build any type of manufacturing plant ‘type’ operation and offer the ‘plant’, a self contained power station. Independent to the restraints of the local power company and whom usually have ‘backup’ power installed ,whenever they do build out new ‘plants’. This could mean little to no down time, cheaper energy costs, scalability and ‘always on’ availability. As an example, let’s say Intel Corporation needs to ‘set up’ a new facility for their latest line of production. In comes SPC with a designed, tested and warrantee Mobilepac unit ( that P&W just happens to make for them, and Turnkey bought from them, thus filling supply and demand needs, at once) and can offer Intel a way to save substantial amounts of money when they go with SPC. If I am the decision maker at Intel, I would certainly have to listen (about a 30-35% cost saving) because that money can now go straight to my bottom line (more money for shareholders).
Now this is my take on USSE/SPC/ONYI
ONYI, what is the significance here? While, yes, the production of ethanol is good, that is not where our real cake is. The real cake is the testing of this new conceptual plan to run any type of manufacturing facility with tremendous cost reductions (the 30-35%). Bring in SPC for electricity, and set up the working production facility (while reducing costs) . ONYI to me is more of a “franchise” concept. While we (as shareholders) will make money on the business model (i.e.; the selling of the “franchise right’ to different territories, the selling of the materials for production, the setup of this whole ‘plant’ concept etc) this is not where the true money is. Don’t get me wrong, it will be very profitable, just not as profitable as in other areas. The beauty play here would actually be in “who owns” the land underneath these plants and the royalty to use the concept. As an example, McDonalds Corporation, while you may think is in the hamburger business, is actually in the “real estate business.’ They own some very choice and valuable land. How about the royalty payments that they also receive? It can and will make them more money than they could ever make selling hamburgers. The current and future values of these choice locations as well as the royalties are the beauty. They will have consistent cash flowing through their operations via lease agreements and royalty payments with “franchisees”.
This is where some more value for ONYI is. Yeah, we’ll get you financed (GE or P&W) to build your new ethanol plant (ONYI) that use electricity (SPC) that buys the turbine from (Pratt and Whitney) that runs on this special new fuel (USSE).
Lets talk a minute on USSE.
The value for USSE just happens to be the slickest ‘thing’ that comes out of this Rivera process. The newly created and developed, biogas. Did you happen to know that a lot of these other “big plant” operations need some type of gas (natural or propane). USSE can now provide to them our excess from the Natchez plant. But that is good money, let’s think about great money.
How about we ‘commoditize’ this new gas. The huge money is going to be in ‘owning’ the exchange, which is now created from the revolutionary gas. Futures’ markets are going to need to now “trade’ this, much like Oil, Sugar, Soy and Electricity. DO YOU GET IT NOW?
That is the master stokes, the pièce de résistance, the gold nugget.
This is the beauty of this whole thing. Whomever thought (unless it hasn’t been thought of yet, but I personally doubt it) of this is frankly, a genius.
I may be getting ahead of myself here. But one does have to ‘imagine’, just as I have.
*Pratt & Whitney Receives Two 20-Year Service Agreements from Northwest Airlines
EAST HARTFORD, Conn., January 25, 2007 – Northwest Airlines (NWA) has awarded Pratt & Whitney two, 20-year Global Service Partners service agreements to maintain Northwest’s fleet of PW2000 and PW4168A engines. The service agreements are the largest ever awarded to Pratt & Whitney, a United Technologies Corp. (NYSE: UTX) company. Financial terms were not disclosed.
“During a review of our maintenance cost model, we found that having a single-source maintenance provider for our PW2000 and PW4000 engines would significantly reduce our engine maintenance costs,” said Andrew Roberts, Northwest Airlines executive vice president of operations. “Pratt & Whitney Global Service Partners presented the most comprehensive solution for our engine maintenance needs while meeting our cost reduction targets. We look forward to continuing our long-standing partnership with Pratt & Whitney.”
The Pratt & Whitney Global Service Partners service agreements for Northwest’s fleet of PW2000-powered 757s and PW4168-powered A330s, include: engine overhaul, part repair, materials management, on-wing engine diagnostics, lease engine support, environmentally-friendly EcoPower® on-wing water washes, as well as engine upgrades that add fuel efficiency and durability while lowering maintenance cost.
“We appreciate Northwest Airlines’ continued confidence in the quality and competitiveness of our products and services," said Steve Finger, Pratt & Whitney president. “Pratt & Whitney’s relationship with NWA began in 1926 when we powered their first aircraft. Our 80-year partnership with Northwest illustrates our continued commitment to delivering engine solutions that contribute to the success of our customers.”
“We are delighted that Northwest Airlines, a recognized market leader, has chosen Pratt & Whitney Global Service Partners to deliver world-class engine services,” said Jim Keenan, senior vice president and general manager, Pratt & Whitney Global Service Partners. “This long-term maintenance partnership strengthens Pratt & Whitney’s position as a unique OEMROTM engine services provider.” OEMROTM represents Pratt & Whitney’s commitment to unmatched capability and excellence as both an Original Equipment Manufacturer (OEM) and maintenance, repair, and overhaul (MRO) provider.
Northwest Airlines is one of the world’s largest airlines with hubs at Detroit, Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and approximately 1,400 daily departures. Northwest is a member of SkyTeam, an airline alliance that offers customers one of the world’s most extensive global networks. Northwest and its travel partners serve more than 900 cities in excess of 160 countries on six continents.
Pratt & Whitney Global Service Partners is a total service provider for CFM56®, V2500® and Pratt & Whitney engines. In addition to offering traditional engine overhaul and repair services, customers count on Pratt & Whitney Global Service Partners to improve engine performance and increase asset value through a broad portfolio of services including line maintenance services, engine monitoring and diagnostics, environmentally-friendly on-wing water washes, lease engines, custom engine service programs and new and repaired parts.
Pratt & Whitney is a world leader in the design, manufacture and service of aircraft engines, space propulsion systems and industrial gas turbines. United Technologies, based in Hartford, Conn., is a diversified company providing high technology products and services to the global aerospace and building industries.
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