Replies to post #13045 on Coates International Ltd. (fka COTE)

[bylosellhy]

Thanks for that explanation. Makes sense. One major key ingredient here is the out come of the A B test. If that is successful and meets all expectations in terms of emissions and durability it will get the needed attention from the industry and investors. Until then I refrain from predicting how the market will treat this stock. The other unknown is the China thing. What is Jack doing? Is China sold on the long term durability of these gen sets?

[Angkor]

It is because large-scale manufacturing agreements need to be in place, testing showing relevant comparisons need to be in place, ect... Coates can do smaller volume in part numbers of hundreds locally here in the US, but bigger volume would need big scale manufacturing, aka China.

There are way more orders than can be handled at the moment... which is a good thing! Interest has never been higher, tying up the needed contracts to push manufacturing ahead is close. Cummins may play a multi-faceted role too, considering they have the means, interest (and possibly motive) to be a consumer, manufacturer, and/or supplier.

They would likely procure several heads for some trial buys, run them and see how they perform over a period of several months of high mileage. If it means new marketing strategies and advantages for them in multiple fields of application, they would chose increasingly larger control.

[ozzz]

I THINK YOUR CONCERNS ARE GREAT POINTS..
I ALSO AGREE. AS USUAL TIME WILL TELL. AND PRESS RELEASES WILL BE NEEDED SOON TO BACK UP THE DEAL.. KEEPS US ALL ON OUR TOES...

I'M LOVING IT...

[Garyedward71]

What about the possibility, that it is an 8yr contract, that is based on a 50% per yr incremental increase in production over the 8yr term. As you have stated, the typical corporate agreements generally require a 30% letter of credit to initiate production. The COATES company will only be making the heads for the 150 watt GEN SETS, and just to simplify the projections lets assume that COATES will be charging $18,000 per CSRV head. So lets make some projections based on a 50% incremental increase per year over a 8 yr period:


(1) CSRV HEAD = $18,000

1st yr.

(100) CSRV HEADS = $1.8Mil.

$1,800,000 / $576,000 = 31.25% LETTER OF CREDIT


2nd year

(150) CSRV HEADS = $18,000 x 150 = $2.7Mil


3rd yr.

(240) CSRV HEADS = $18,000 x 240 = 4.32Mil


4th yr.

(360) CSRV HEADS = $18,000 x 360 = $6,48Mil.


5th yr.

(540) CSRV HEADS = $18,000 X 540 = $9.72Mil.


6th yr.

(800) CSRV HEADS = $18,000 X 800 = $14.58Mil.


7th yr.

(1200) CSRV HEADS= $18,000 X 1200 = $21.86Mil.


8th yr

(1800)CSRV HEADS = $18,000 X 1800 = $32.8Mil.



TOTAL CSRV HEADS = 5190 UNITS

TOTAL REVENUE TO COATES LTD. = $95,000,000