EcoloCap Solutions Inc. (fka ECOS)

[was Honey Badger]

Distribution Concerns

Time for my monthly long diatribe on ECOS ..

I haven't had much time to read or post, so the Board may have already discussed the comment from the CEO Blog: "We plan to bypass the distributer, and sell to the large farms directly."

Are others concerned about that statement? I have asked IR to address in more detail, but have not heard a response. Hoping IR sends out a tweet or email blast on distribution logistics, as well as the ambiguity around when the QC period will end.

My serious concern on distribution is this. In the past Blog of 2/6 "Answers", it is stated "We do not want or have the ability to set-up a distribution infrastructure necessary to distribute fuel."

I call that most recent statement a 180 degree change in direction.

I imagine that the 2/6 comment was made because there are a lot of barriers to being a distributor in Korea. My best guess is that the 2/28 change in direction is a supply chain issue. It isn't as much the regulation barrier of water in fuel. I assume that D-20 is NOT very popular in the Korean Kerosene sales and distribution network, as it claims to cut Kerosene sales to chicken farms in half. If Kerosene retailers have their own distribution network, they probably not only don't want to distribute D-20, but may even go so far as NOT wanting D-20 on the market at all.

IMO, it all comes down to how D-20 is to be (or not to be) regulated in Korea. My wild guess is that if the Korean Kerosene industry doesn't embrace D-20 in their distribution network, we investors are in for rough times as the Kerosene industry may collectively use whatever political clout they have to keep D-20 out of the Korean market. Hope that I am dead wrong on this, but I am nervous when a plan changes from the stated "... we do not want, nor have the ability to set up a distribution infrastructure..." to "we plan to by-pass the distributer".

Reminds me of the plan to build a battery plant in the US, and then the recent Blog statement years after the fact that it was cost prohibited and would take $100M to do so.

On a daily basis I give more credence to the claims that this is a "string along investors" deal that benefits only those few at ECOS on a salary, and the toxic debtors.

I'd like to hear more about this plan for distribution, and why ECOS apparently and suddenly (within a month) has acquired the desire and the ability. On a positive note, maybe ECOS can contract a third party to handle distribution and include distribution costs in their fees to farmers. On the downside, maybe they will need to buy / lease vehicles, transportation tanks, etc., for which it doesn't appear they have any ready capital. More toxic debt has been their only solution to capital problems. Toxic debt can't hardly drive the SP lower than it already is at, but the inability to put a distribution network in place could take this to bid zero and close the doors.

As a long time long, I hope I am wrong about this, and that the barriers to distributing D-20 are nil. Still, I see a potential for huge issues and further delays.

If you agree, pls write IR and request an answer as to what the distribution plan is. I wouldn't guess this is top secret - they already have said they have a plan, we just want to know if it is real. What is the plan's timeline? Do they truly have the ability now, or are they going to need to buy trucks and hire people? If so, do they have the capital?

As things stand, I doubt even the possibility of revenue reported in Q1 10K. If in Q2 10K, it will be ... probably Fall this year before revenue will be posted to the all important 10K. As you all know, 8K and PRs always have the out of being "forward looking statements".

Thoughts?

PLEASE NOTE: My post contains pure speculation and guesswork. I have used my thumb in the wind, a Ouija board, and magic 8-ball in may of my guesses. When necessary, I have utilzed "rock, paper, scissors" with my left and right hands concurrently, and often lose.

Keep in mind, I am dumb enough to have ridden this stock from pennies down to current levels. Based on my investing experience, this post may possibly be 100% wrong.

For humor and comic relief only: for long time ECIS investors -- Here is my predicted CEO Blog for around 3/28/14.

"The orifices have been reduced in diameter, an I am not just talking about many investor sphincters. We are currently screwing in as many orifices as we possibly can. We are continuing to plan to probably produce exactly 800 litres D-20 per day, and imagine that a some point in the future, as will be producing a kabillion liters a day, week, month and/or year, at a native American plant located at a secret location within Area 51. We have also plans to produce element 116 in the same plant, which we plan to sell to NASA for interplanetary and potential time travel purposes. We are in discussions with Kosovo and then Kuwait, as I don't recall having mentioned them before and they are next on my alphabetical list of countries after Korea. Kosovo is mainly interested in our time travel solution, as Kosovo has seen better times. (I digress, but then again, so does my business plan.) We plan to use retired NATO red-cross C-130's and drop D-20 to farmers via parachute. We will fly over farms and chicken farmers will raise a red flag, and waive when they need a D-20 drop. I got the idea when I wanted some more meat at a Rodizio Grill and hoisted the little flag at my table." Bitter? Party of one? Your table is ready!

Thx - HB