Replies to post #65 on Grifco Inc (GFCI)

[Bobwins]

As you state, the stock is undervalued because there is no record of performance to back up the claims. They don't have a track record.They have completed one of the mergers and the Jet Motor came out of collaboration between the owner of Coiled Tubing and Grifco. They have announced several products that sound promising but haven't shipped them yet.

I have done some DD that suggests to me that the products are real and with oil services hot now, I think they could achieve some of their lofty goals.

We should find out fairly soon if they can complete the announced mergers and ship the products. After that, we still have to wait until October for the audited stmts and SEC filing. Not pounding the table. I like the sector, products and opportunity. Not sure about mgmt.

Bobwins

[trailrunner]

"Several of the major oil and gas companies, as well as large independents, have lined up to utilize this 'one of a kind' tool, knowing that a single Jet Motor will typically increase oil and gas production 15-25% per well, while saving money on workover costs," stated Jim Dial, President and CEO of Grifco International. "We anticipate that the rental units will be used continuously and repetitively by clients, shifting from well to well, for the life of the tool. The fifty Jet Motor units will generate approximately $2 million per month in rental fees with 75% utilization."

If the above statement has any truth, then this GFCI should have a potential market value of few hundred million dollars vs. current 12 mil. Investing in stocks in general and pennies in particular is speculating. No one can offer you a sure thing, it's all about balancing risk and reward. In GFCI's case, I say risk is high but reward is higher.

[trailrunner]

I was scared when i bought my shares in March, for I had not bought .pk shares before. And I was afraid they were "fly by night" and may "take my money to Mexico" (in a different way). But now I felt more confortable, especially after their investor's teleconference 3 weeks ago. Insider shares are restricted, so releasing false info to pump n dump should not be in the cards. So, I just take their words at face value and say a prayer and hope to make a bundle down the road.

[back2basics]

GFCI: Lentiman, you asked Bobwins some questions about why Grifco should be trusted. I don't expect you to trust me. The reason it is not @ $3.00 now is self evident. It is a pinky with no verifiable earnings. IMO

I'll tell why I'm in GFCI up to my ears. I have a relative with 40 years in drilling, production and oil field equipment manufacturing. He has sold 2 pending patents of his for downhole turbine pumps.

This relative has held the Jet Motor in his hands. As well as the Ko-Vac pump , a specialty fishing tool, and some very small drill bits that he assumes are to ream ahead of the jet motor. The JM is a very high pressure tool, 10K - 15K psi. Blow back off scale in highly corroded coil tubing causes lots of torque. If you notice in the PR that they refer to the JM as a drill bit. That is most likely a modification developed from the 25 field tests in Mexico, which Schlumberger ran.

I also know that Grifco has 4 CNC (Computer Neumeric Controlled) turning / milling machines. These are +- $100K per copy machines. They didn't buy these so they could issue fluff PRs about them.

I also know that Global has a much larger shop in Houma, LA than does Grifco in Scott. I know that global's facility is on a railroad siding.

My relative has questions about management. His biggest question is, " why in the hell isn't this a much bigger company?" Personally, I think they are suffering major growing pains.

My relative said, " I don't know what's up with management, but with the specialty coil tubing tools they are putting out, I don't see how they van miss."

PS. I also know that the shop has been sending tools to Mexico to stock two new rental shops.

I hope this helps. Do your own DD.