Replies to post #25221 on Cyclone Power Technologies, Inc. (fka CYPW)

[BuddyWhazhizname]

CYPW is a pure gamble and not an investment.

There could be money to be made by betting, but the house edge is stacked heavily against it.

Cyclone has been operating the last two years through the proceeds of convertible notes which have led to the authorized being moved from 300 million to 2 billion shares, and the steady drop in stock price.

The lower the price goes, the greater the number of shares each note converts into, and the greater the dilution.

Cyclone hasn't updated their financials since Q3, so we're almost 8 months behind in knowing where they stand.

Given their history of issuing PRs for the least significant accomplishments (for instance, "Cyclone Power Technologies Receives Purchase Order for $135,000 to Provide a Hydrocarbon Extractor System" which has never been mentioned again) and the fact that they've been very quiet means it's a safe bet they've had zero revenue since the last financial report.

The last member of their "leadership team" left in March.

Their technology is a lovely dream, but has been handicapped from the start by Harry Schoell's ego. Harry styles himself as an "ingenious inventor". Apparently ingenious inventors don't need to test their inventions to find out if they actually work or not before selling stock. Look at the patent drawings and you'll see that every nut and bolt had already been decided on in 2005.

He didn't start to build the engine until 2009, after having raised millions from investors and selling two engines. Cyclone issued a glowing PR in December 2009, but when you read it carefully, it says they only ran part of the engine, and don't say if it produced any power.

More years and many more millions were spent trying to get the engine in the patent to work. Finally as the money ran out Harry gave up on his patented design and started over. Last September they posted a video of part of a Mark 5 engine converted to rotary valve admission. (The video link is dead now.) In February there was a video of a 'running' engine that shows most of the patented features have been removed.

Listen carefully to the engine ticking over and you'll notice the speed goes up and down like a yoyo. The engine also isn't powering anything.

And they obviously haven't met the 50 hours without a breakdown requirement or the two engines would have shipped to Combilift and Cyclone collected the $300K for them.

So, after burning through more than $20 million over 10 years they don't have an engine that is anywhere near marketable. The engineering staff is now down to just Harry Schoell, who has no post-secondary education and is limited to designing things by strict trial-and-error. The patents cover inventions that have never been made to work. Let's not even go into all of the different markets they've alienated by promising engines and not delivering.

That's their technical situation.

As far as buying stock goes, it would be a better deal if they were just an empty shell. At least then the stock wouldn't be under constant dilution.

Four or five times in the last year the stock has been pumped on this board. Other than a spike for a couple days in December it hasn't done much. That's the challenge with betting on a stock that's being diluted.