Re:<"5. One of the main hurtles that I do see is related to the real value of Biofuel and just where is it going to fit in the market. We are now on the verge of testing the market with the Biofuel being as an additive that, I think is for the purpose of increased miscibility in the production of OD-66. I don't see this as being the ultimate niche for Biofuel.">
I'll definitely agree with you there. It's fairly obvious that USSE is searching, going from a diesel replacement for power generation to a "green" motor oil to ethanol slag to an additive.
The big issue I originally had was that Mr. Rivera marketed his pyrolysis oil to shareholders as a diesel-equivalent. He made statements saying it was engineered as a replacement for diesel, superior with none of the drawbacks, gave a demonstration designed to communicate it was just like diesel or gasoline and made comparisons such as saying he could produce three times more biofuel from a bushel of soybeans than competitors. He tried hard to make shareholders believe that for all practical purposes, his pyrolysis oil was diesel which could be produced at $0.50/gallon.
For the 'searching' I can shed some light on the 'searching' environment...
I know that a million dollars from a VC for a startup company is a very good investment. VC's are subject to the market like everyone else and if it was more profitable, there would be more VC's. Generally VC's are competitive and fair--they may not want to be but the market forces them to be. VC's get a bad rep from entrepreneurs who invariable believe their product is worth close to the gross national product therefore anything they trade for equity is far too little.
To get a good investment from a VC, a startup company has to show a solid proof-of-concept. A company such as USSE with no proof-of-concept, which has an old process such as pyrolysis that they display as a science project but for which they can't seem to find any worthwhile use would not get funded by anyone with experience in the capital markets. USSE simply wouldn't get a dime. Angel investors are more likely to be more free with their investment money (and subsequently less likely to make a return) but generally they're more savvy as well.
However, by getting listed on the pink sheets, USSE has access to the least discerning of investors, the general public, where USSE doesn't need any proof-of-concept but still can not only command a $1,000,000 investment but achieve an absolutely ludicrous $180,000,000 market cap.
There are many, many companies out there which have cool science projects and which are looking for a commercial application. Most remain that way--cool and interesting little money pits. I think it's an absolute gift from above that someone is sitting on the current bid willing to offer sellers $0.041 for USSE shares and $0.057 for SSTP shares.
AI
