Hero Technologies Inc (HENC)

[tchauncy]

Thanks for the kudo on KNDI. While I haven't been posting much here on KNDI, Since it is a listed stock, I have been very active on both the Yahoo KNDI board and Seeking Alpha. I have a considerably larger position in KNDI today then when I last posted here and was a buyer of that stock as recently as yesterday. I became involved in that stock when it first started trading Summer of 2007 and venture to say that there is no one short of Management that knows and has researched that stock more than I. IMO, in the next few years KNDI will be the equivalent of a triple digit stock. Even today at the current price, my friends and contacts own at least 80% of the float.

I mention the above not to tout KNDI on the HENC board, but only as a lead in to say that from a due diligence and research point of view, I feel every bit as confident in the potential of HENC with one caveat. Inherently, HENC is more speculative by nature of being an Oil and Gas exploration company that while having a tremendous amount of science on its side showing the massive potential of its properties, it still comes down to the old oil field adage of "only God knows and a drill bit can prove if the science is correct".

I have had the highest respect for the Management of KNDI who owns slightly over 60% of the stock, and a similar respect for Holloman Corp and the Management of HENC who also own over 60% of HENC. (which was not a freebie but in fact has cost over $15 million over he years to acquire) http://www.secform4.com/insider-trading/1324736.htm

While I have been involved in the market for 37 years to include being an Energy Investment Banker with Merrill Lynch, in the past owning my own brokerage firm, and have been an OTC Market Maker, my roots in the industry began as an Oil and Gas specialist here in Houston. In all my years I have never seen a better oil and gas speculation then HENC.

If you have been keeping up with the news that HENC has put out, you will know that due to a once in a hundred year weather phenomena caused flooding in the area of their spectacular, massive Cooper Basin concession in Australia nine months ago. The Cooper basin, while being basically outback desert for the last several million years, was once an inland sea. Ergo the "basin" name. This fluke of nature caused the "sea to come back" leaving areas of the formerly dry basin under as much as 30 feet of water. Since it is a basin, there is no place for the water to run off to, so it has to evaporate. While this certainly might be seen as bad luck for HENC, IMO, it could have been much worse as it has been for a number of small E&P explorers in the area that actually had already started production and development with bank borrowing, now only to see all cash flow stopped. There are no oil pipelines in the area, all production is "trucked out" by "tanker trains" which can't operate with flooded roads. No amount of money can fix this temporary problem, only patience which appears is still going to take a few more months.

A year ago the Cooper was the hottest on shore play in Australia with its common 1000 barrel a day plus discoveries. The flooding did not make the undiscovered oil go away. In the not too distant future, it is inevitable that this will again be the hottest play on the continent. By that time, HENC stock selling below .50 will be left to permanent history, IMO.

The selling right now, IMO, is either that of ignorant impatience or the beginning of early tax loss selling with anticipation of being able to buy back before things start to pick up in the area. While the volume has been light, I personally have added over 100k shares to my already 7 digit position in the stock. I believe that once a partner is announced the stock will start moving up rapidly and by the time a drilling rig is on location early next year, the stock will be closer to a dollar than .50.

If they hit on one of the first few wells, then the upside from that area is immeasurable (wildcat hits in the ares have had better than a 60% success rate). If the science is proven wrong and they strike out on the first few wells, even then the stock is not going to zero. With the latest announcement they will still have almost 3 million unexplored acres. From a risk reward point of view, this is clearly one of the most interesting speculations I have ever seen.

I mentioned above that I first invested in KNDI in 2007 and have been a fan ever since. I paid as high as the upper $6 level only to watch the stock drop all the way back to $.45 not much over a year ago. HENC potential at this level IMO, is the equivalent of buying KNDI below a dollar at that time.