Replies to post #12930 on QS Energy Inc (QSEP)

[Chompiee]

Just curious. What would the stock go to if bought out now? I know this likely won't happen but I'm intrigued.

[alkalinesolution1]

Dissent

While this is a possible scenario - I really have no clue, have not done business at that level, so have no basis for a judgement - there are so many other possibilities that seem more likely. Like simply figuring out the next step and the engineering for a slightly more expanded installation. That would seem a simpler second step. But indeed, the buyout consideration is a possibility. It's just that TransCanada is a huge company so they cannot be seen to do anything wacky or risky. They had a fiduciary duty to shareholders.

Gregg is also not the one who makes the decision on whether to sell STWA. and I believe it was never part of the plan. It's the shareholders. There are like 100m shares or so held in the hands of very wealthy people that probably expect $50/share in five or six years time. They will block any sale at the kind of prices TransCanada could possibly justify (I'm guessing). And also, TransCanada doesn't have a business in doing oilfield services, which is effectively what STWA is promising. So i don't get the business fit. It would be a new line of business. They are an asset manager. There's no possible way that there would be a situation where the AOT is only limited to one company's pipeline - it would be silly. So I doubt the buyout thesis for all those reasons, and the fact that there are more likely ones.

Finally: STWA management has for a long time (as far as I know) discounted the idea of setting up the company for a buyout. Eventually that may be something they can't control, but the way it's going, they're not moving in that direction. They are actually trying to buy other companies and integrate them into STWA. Simply installing and maintaining the AOTs requires an infrastructure that STWA does not have. That's a huge job. It was handled by Bechtel and other contractors this time and STWA was not even allowed to TOUCH the TransCanada installation. So if STWA wants to take that portion of business - someone has to make that dime - then they will expand and take over one or two other smaller firms that are already profitable and use those resources as the STWA installation business. This shows a bigger game plan and conception for STWA. They are building a machine that will be able to quickly deploy and service a suite of AOTs on other assets.

I'm pleased with all this. I just hope we see the money soon, because I have stuff to do. Seriously. I want to sell some shares at 5 bucks and do stuff.

[moorea9]

If the AOT works very well and is commercially viable, then for TC the issue goes far beyond what to do with this AOT or even how to outfit one pipeline. It may not be a buyout, but a kind of joint venture.

And this question must be dealt NOW, and not after another test, because then KM will be in the race IMHO.

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moorea9 Friday, 05/30/14 04:16:11 PM
Re: None
Post # of 12362

TC has been involved in the development of the AOT2 with X engineers for Y months. Yet, many people here doubt that this device cannot be installed on another company without some kind of involvement of TC which might be spelled in the NDA (unless you think that each company will have its own version of the AOT). The NDAs might also not be bilateral NDAs but multilateral one, with STWA as the provider and TC as a stakeholder. And also, for all this to be actionned into contracts, all NDAs must wait for the unique pilot results, which will scale the profitability of the device, and then its pricing... Just my opinion.