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Re: Estimated_Prophet post# 192119

Wednesday, 07/25/2012 6:18:59 PM

Wednesday, July 25, 2012 6:18:59 PM

Post# of 312016
Answers to some questions while I have a quick minute....

(1). Yes just one Chinese drum replaced with an American made drum. The American ones are built like tanks. Ask me how I know.

(2). Not sure if number three will be in the old or new building. The drums for all red can certainly fit in building one but, IMO, that may not be practical. Dunno.

(3). Every quarter will show accelerating revenues until they really blast off bringing in positive cash. Remember, Kevin is from NYSE: RKT, a company that does billions in sales. To him meaningful cash flow is more than just barely breaking even. This thing is developing into a monster. He didn't leave a fortune 500 company for anything less.

(4). Processor 2 is a monster here and now.

(5). They want to do a multi-state mass rollout. Financing may come in the form of debt, equity, or bo. Whatever is best for shareholder value. Remember -- mgmt bonuses are based 100% on stock price and their options are all at $1.50 per share. First NYSE: RKT site will be announced shortly. They said they were almost ready to announce it at the AGM but just weren't quite ready.

(6). Run tickets coming. Though not official yet, when asked at the Q&A they said that was something the execs have been "recently discussing" -- what would be there to "discuss" unless they were fully intending to do them? Run tickets with consistently accelerating production are coming IMO.

(7). Yes, processor two is functional. Is it running this second? No idea. This week? Without question.

(7). I'm going to repeat -- the entire presentation including forecasts was based on the 2,000 lb/hour limit which was mentioned continuously during the presentation. That limit has now doubled. To ignore the effect of something DOUBLING yet still using the same assumptions is ludicrous. They'll need HALF as much up time now as before to get cash flow positive.

Raw

Research & analysis on some of my favorite stocks is located on the sticky note on the SwingTrade board.

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