SunHydrogen Inc (HYSR)

[Imperial Whazoo]

What has happened here is that a tiny company has partnered with a well known university to file a patent application for a bit of technological progress that has a market that is larger than the immediate business plan of the tiny company.

Here is the wording of the news:

the developer of a breakthrough technology to produce renewable hydrogen using sunlight and any source of water, today announced that it has jointly filed a patent application with the University of California, Santa Barbara (“UCSB”) for the “protection and stability of electroactive units used for production of fuels and chemicals.” This invention could dramatically reduce the cost of fuel cells, an important source clean energy.

Now, as far as I can tell, thats good news.

But here's the kicker:

They have realized that there is a market for this thing.

Here's the quote relating the realization that there is a more robust market for this technology that their own internal product development needs:

“We recently developed an efficient and low cost protective polymer coating that allows for good electrical conductivity as well as preventing photocorrosion. This was a significant achievement for solar to hydrogen production. However, our continued research has revealed that this coating may offer broad benefits in many electrocatalysis applications, such as fuel cells. ”

Basic economics rules rhe roost in my book and it matters that they have a polymer they can sell to other companies.

So as far as I can tell, at the present timeline in my DD cycle, this is a real product with a real market.

So, maybe the involvement of pump-n-dump newsletters is a death knell, but maybe not.

In any event, it looks like it is not going to crater right now. And even if there is pullback, if there is a real patent filing and a real use for the polymer beyond their immediate internal needs, how is a pullback not a buying opportunity?

JMHO

Imperial Whazoo