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Re: King_George_Va post# 6805

Monday, 01/02/2006 2:27:48 PM

Monday, January 02, 2006 2:27:48 PM

Post# of 36784
What I think is most important is that CTKH has dramatically improved it's production capabilities in the last few years. If demand hasn't increased as fast, it will catch up, meanwhile CTKH can retain some of it's earnings rather then spending on expansion for awhile. They could also look at adding capabilities, I'm sure Fayiz still wants the capabilities that adding Valley Design would have given them.

There is little doubt in my mind that if the Cetek Process is as good as we've been told it is, eventually the ovens and rights to use the process will either be sold to others, or the company will partner with someone who can afford to establish production plants in other parts of the world. Such a partnership could result in an upfront payment to CTKH that could be in the tens to hundreds of millions.

In some ways this is like Biotech where a small company develops a drug that's showing promise in early trials. To fund the more costly later trials the drug is normally partnered with one of the giant Pharma's or larger Biotech's which gains control of the drug, but pays enough to keep the company operating, and will pay the company royalties if the drug's approved.

Gary