Gulf Alternative Energy Corp. (GAEC)

[zekel]

Maybe William Carmichael truly has more time to dedicate to his new post as interim CEO of GFET as it was announced today that he resigned from OXFD (3-1/2 weeks ago) - it is unclear what will happen with his +/-8 million shares he captured (thru Galleria Securities) on that venture - maybe will spend more time with JT out at the ranch: www.jtcloud.com ??

My Comments/Opinions on the GFET shareholder letter:

"We are currently in the process of recruiting additional talent to our management team and Board of Directors" - more chiefs and no indians to do the work of actually making money....with little money in the bank, I anticipate more shares to be issued to the new management and BOD's to pay for their salary.

"...we believe that our technology, after we have finished testing and development, will play an important role in the advancement of efficient cellulosic ethanol plants in the U.S. and around the world..." - agreed - ya gotta start somewhere - untested, unproven, and never marketed - great concept but still far off in my opinion. After they prove out the technology, there will be a need to ramp up ($$) production, engineering, and marketing. Source of income is unknown at this time (except for issuing more shares).

"...because of the bulkiness of most biomass, transportation costs are high" - agreed, however, it is unclear where GFET plans to actually install this pre-processor - do you put it at the ethanol plant (and still incur the high transportation cost), or do you put it at a field location (and incur the cost of multiple pre-processor facility at each field location)?

"...attempted to engage in the international trading of ethanol, it attempted to acquire a couple of different facilities which it was unable to close and it even attempted to build an ethanol plant in China, Texas but abandoned that effort after meeting with resistance from the community." - other than Carly Long placing an ad in the international B2B website, I don't believe the Company ever attempted to engage in trading ethanol in a meaningful way at any of these locations and to push the blame on a community resistance is disingenous.

"In December, we entered into an agreement to jointly develop a technology that had been proposed by Meridian Biorefining but found they could not deliver to our specifications" - as was pointed out by those in the know at Meridian and AETE, the story line is very different than not just meeting specifications - it is reported by others to be an issue of Carmichael attempting to steal 6 million shares.

ref.: posted by "Tippingpnt" (reported to be the lead investigator with AETE):
http://investorshub.advfn.com/boards...ge_id=29526247

"Pink Sheets companies, however, do not share the same rigorous disclosure requirements of SEC reporting companies so investors may have less information on which to make their investment decisions" - agreed. We will likely never know the reason why the bulk of 34.1 million shares were issued to company insiders and friends at par value (Useltons, Gilchrist, Carmichael, Mordekhay, and Cloud) nor will we ever see the full financial conflict of interest payment made to Chet Gutowsky for his "independent" analyst white paper he allegedly wrote.

"Pink Sheets stocks are often subject to traders who try to make money by shorting these stocks. Their method generally includes posting negative comments and, often, misinformation on blogs and message boards in order to create a negative view of a particular company while they are selling short into the stock" - this of course, does not apply to me as I have never owned this stock (long, short, or otherwise - directly or indirectly). I have also repeatedly challenged others to refute my assertions about the company and no one has provided a contrarian position.

Ironically, the misinformation to date has come directly from the company, especially its website and press releases. On a positive note, the Company continues to clean up its website and as of today has taken down most of the erroneous and false information that claimed to be a marketer/producer of ethanol (guess they actually read my blogs!).

Remaining errors/omissions/misstatements from their website:
http://www.gulfethanolcorp.com/gulf_...nvironment.htm
"Gulf Ethanol primarily sources ethanol from sugary crops, such as sugarcane" - GFET has no facilities to source to.

"Gulf Ethanol is actively monitoring these developments and encourages its suppliers to employ the most efficient methods of producing ethanol" - GFET has no suppliers for their non-existent facilities.

http://www.gulfethanolcorp.com/index.html
"Gulf Ethanol Corp. guarantees a high quality product to its customers. All of our fuel-ethanol meets or exceeds ASTM designation D4806 specifications and our continued efforts aimed at quality assurance include regular product testing in addition to world class customer service and reliability." - GFET has no product. ASTM D4806 is the incorrect standard for E85 fuels.