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Re: rickkei post# 3509

Tuesday, 04/19/2011 2:08:57 AM

Tuesday, April 19, 2011 2:08:57 AM

Post# of 6560
Great article, but allow me to add a few concerns with this overall market and food shortage, that CPOW's CEO needs to consider and act upon.

First, Fuel Producers
That anticipated demand for soybeans by fuel producers may not be met by U.S. farmers, who told the government last month they intend to cut acres planted with the oilseed by 1 percent this year, the USDA said March 31. Chinese growers may plant 11 percent fewer acres, seeking greater profit from cotton and corn, the agriculture ministry said in a report March 16. Prices for both crops more than doubled in the past year." and "While higher prices may be hurting food companies and consumers, they’re bolstering income for growers."


The ones that need the oil the most may plant less to make additional profits for the growers / agriculture industry. Though they are talking corn, cotton, and soy, it will cross over to other seed crops. Thus raising the prices of the raw materials that companies like CPOW will have to pay, though they can pass on some costs to the consumer, for the most part the profit margin is cut. Also less product equals greater competition for the "oil / Fuel" producers. In other words, Shenher needs a commodities expert on his staff to be able to forecast and acquire goods on the futures market to maximize profitability and stabilization of raw material and manufacturing costs. I look forward to seeing how he handles this.

Secondly, and out of everyones control is the weather as the article states we cannot afford a hiccup. So again, Mr Shenher needs to stock pile as much as possible, if possible, and as soon as possible to avoid production delays in Montana, and possibly Alabama (if still on the table). Problem currently is funding, I know the 30 million is possibly available after the SEC approval but so many restrictions and limitations that it may be very difficult for the leadership to recover or sustain production from any natural disaster. I'm hoping for greater transparency in the future that will alleviate the markets concern, and thus gaining CPOW the respect it so desperately needs. I look forward to your thoughts.

Second:

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