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Re: silkmaster post# 36703

Friday, 01/13/2012 1:14:59 PM

Friday, January 13, 2012 1:14:59 PM

Post# of 278654
I would very much agree.

My interpretation of that is that the product resulting from the ramping up of the Monster Silk worm population is the "sales that did not take place". That would have been a chopped or swirled strand product for reinforcement derived from the holed cocoons from the breeding process (in which you have to allow the worms to cut their own way out, damaging the cocoons in the process) that was being considered by a company in the "security and structural reinforcement" area.

I suspect that there was some requirement for that purpose that made it not worth the diversion of time and resources it would have required. My guess would be some processing of the cocoons (washing,etc.) that KBLB wouldn't need to do for other sales (just send them the whole cocoons and let them do the rest themselves,which is what KBLB is probably aiming for.

Because that would have been a low volume of sales and required meeting special conditions, if the other sales were close it would make more sense to abandon that small market (for now, at least) and just get to the larger and more profitable markets sooner.

It's my understanding that that market (for the holed cocoons resulting from breeding) was meant more as a source of "bridge" financing to get to the "real" markets. But it the "real" market was a lot closer than previously anticipated and that "bridge" market took more time and efforts to satisfy than expected, it would make more financial sense to ignore it (at least for awhile) and just concentrate on getting to the larger and more profitable market sooner.

THis is,of course, largely speculation, but sometimes that's about all you can do. The CC should clear a lot of this up.
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