Best Bio-Energy Play Out There Right Now!
The company's 10K goes a long way towards establishing this company as the best bio-energy play out there IMO! Some reasons for my claim:
1. They are making a profit WITHOUT having an operating plant. This means they are generating operating income through licensing fees and engineering services. Bottomline...others think their technology is valuable and are willing to pay for it!
2. They are ON THE CUSP of having an operating plant, which will only add to their revenue stream, and enhance their balance sheet even more. This company will be the first significant bio-fuel producer in the country, and will be a disruptive force in the industry. So many of the other companies out there are still many years away from generating commercially viable energy on any kind of significant scale. We're ready to go right now!
3. Their technology is one of the few that does not put any pressure whatsoever on the food supply. They use a waste product and turn it into something very valuable. One of the best business models you can find is to turn one mans trash into many men's treasure.
4. Flexible technology. The same process can be used with multiple feedstocks (animal fat, natural gas, coal, algae (eventually). This means it has a significant chance o be employed in multiple places and adapted to what fuel is abundant (i.e. coal in China, natural gas in the Middle East, etc.)
5. Support from the Govt (here and abroad): Whether or not you agree with the politics & wisdom, governments are pretty much falling all over themselves to try and incentivize green energy production. This will enable the company to get its technology fielded and improved to the point that it can stand on its own in the commercial energy landscape. (I personally think this company will do just fine without a nickel of subsidies in the long run, but having them is a nice boost to the bottom line in the near-term).
5a. CHINA. Their demographics dwarf those of the U.S. If they decided to really to deploy Syntroluem's technology via SINOPEC using coal and natural gas as a feedstock, they will make Geismar look like some kind of small-scale demo plant. The licensing fees will be huge, and will go straight to the bottom line...making this company incredibly profitable!
I'm sure I could come up with more plusses, but the above represents some of the most significant reasons I think this will be a very successful company and lucrative investment in the next few years. I would not at all be surprised to see the share price approach $30 within 18 months if things continue to develop according to plan for the company.
For these reasons, I think Syntroleum represents an incredible compelling investment at two dollars & change, and will be accumulating all I can beyond what I already own in the coming days and weeks.
GLTA,
Murocman
