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Re: SuperC post# 1653

Sunday, 03/25/2012 3:24:42 PM

Sunday, March 25, 2012 3:24:42 PM

Post# of 68548
Thanks SuperC for your words of caution. Maybe dampen down a little bit of "irrational exuberance" that could be happening here.

When I first read the PR for this deal it seemed like a buy out but after reading it many times over I think FEI is going to be an exclusive seller of ECOS's equipment and additive. The important part is "FEI is committed to purchase, own and operate all or most of EcoloCap’s manufactured processing equipment and additive for the production of M-Fuel and other specialty emulsion fuels" It sounds to me ECOS is going to be responsible for manufacturing the equipment and additive then supplying it to FEI with their mark up I would assume. I would hope on 1 April we would have more clarification.

The long term has huge potential when you consider the world uses about 25 million barrels a day of diesel and heavy fuels. This is 1 billion gallons a day. Ships burn heavy fuels and I believe the NPU's can be used there. There are about 50,000 ships worldwide. You broke down the revenue numbers per NPU.
If they capture just a small part of this market the revenue and earnings can be huge. The short term run up will be because of the potential and people positioning themselves for the long term potential. Some "rational exuberance" maybe in order.

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