ConectiSys Corp. (CONC)

[praxis60]

I see what you're saying, OTC, but I still think that licensing is possible. Most licensing contracts that I've seen specify a number up front - not pay as you go. So, say the license is for 10,000 units. Then, 10,000 units are paid for up front and when the user gets to that point, they purchase another license. To me that keeps a licensing deal in the realm of possible (acknowledging that possible and probable are two different things.)

Also, what about intellectual property rights? I know the company never patented in this country but, if memory serves me correctly, it was patented in Europe.(?) If so, that in itself is a reason to license rather than invest the money in R&D. Not to mention the time frames involved - my understanding is that all of the stimulus monies (whether it be the US stimulus plan, China's, etc.) are meant to be spent within this year and the next. With that in mind, a 2 year R&D window is pushing it.

Also, the last time I read the fine print on the US stimulus package, funds were not to be spent on R&D (and I'll admit that could have changed since I last perused it some time ago) but I would assume that every other country has similar parameters and limits on their stimulus packages which would make the need for this technology immediate.

All just my opinion, of course - and that may be colored by my desire to see this thing succeed - but I think a savvy manager might be able to pull something out of the fire. Whether I think Spigno is up to the task is another story.