ENGY - Enviro-Energy Corporation (ENGY)

[jmhollen]

General Information:

When this board was created back on 03/04/02, ENGY was actively engaged in building, testing, and improving an SBR anaerobic digester system in Tillamook, WA. Additionally, Mike Funk was a principle of the company and actively traveling to build synergies that would hopefully lead to expansion. Mr. Funk was also personally providing development funding that he shut off at the worse possible time, just as the latest improvement modifications to the SBR digesters at Tillamook were in the "..start-up.." phase.

Unfortunately, the USDA/NRCS support funding to help dairy and CAFO farmers purchase AD's for their manure management needs has never materialized. Subsequently, many state DNR or environmental protection agencies (..by any other names..) have not enforced some existing regulations - unless a situation was absolutely critical. This is primarily due to the financial burdens already imposed on cash-strapped farmers.

It is my understanding and judgment that little progress will be made in farm-based AD's until the USDA/NRCS EQIP portion of the current farm bill is finally funded. And then, there is still a problems with local politics. EQIP funding of manure management systems for CAFO's will have to compete with other "..bike path.." and "..babbling brook.." improvement issues deemed more important by local non-technical residents on the committees. If the CAFO farmer involved is not in the "..in crowd.." in his baileywick, receiving the EQIP funding may be highly unlikely - hence marketing AD's to those potential clients becomes very unattractive. Ergo: the small to moderately large CAFO famer market for SBR-type digesters is currently dead.

Apparently due to questionable stock distributions prior to the involvement of Tom Bowers, and the subsequent leaving or dismissal of previous principles, other major investors and/or investment bankers appear to be unwilling to fund completion of the Tillamook SBR AD, or to fund the repair of the company.

This situation has resulted, to the best of my understanding, in the non-payment of various equipment suppliers, consultants, officers, and employees - resulting in pending lawsuits or wage-hour claims currently filed or to-be-filed; published or not.

As one of these consultants appears to be the patent holder of the AADS process, retention of ENGY's license to construct AADS digesters may be a real problem. Without that license, ENGY is now dead in the water. IMHO. The only market for these high-perfomance and high first-cost digesters is with large meat packing and other major industrial process customers having digestable waste streams.

Colvico, an independent and successful arm of ENGY, is the only functioning entity involved. Cory Colvin seems very unlikely to allow any but the most meager of funds to move from Colvico to ENGY, just to keep ENGY alive as an entity.

An issue has been raised that my perspective on this company has changed from a possible BUY when they were making progress, to a HOLD at best if investors are still in. "...No kidding..."!!! "..WAIT AND SEE.." would be a good plan for the uninvolved at this juncture, IMHO.

If I were going to buy a Ferrari that was in good condition, it could be considered a good plan and/or investment today. If the dealer's kid subsequently took the car out on a date and "..wrecked it..", it's unlikely that my interest in buying that car would continue. Things change and 'stuff' happens; which is why one should never become emotionally involved in - or irratioanally attached to - mini-Microcap stocks.

Please DYODD x2 with ENGY. The original technology package was great, but the execution of it is now unlikley.

John