ECOS, keep this in mind and why this will be a long-term play.
Basically this is how the M-60 breaks down from a sale to reoccurring additive sales.
Each Unit Sale Price [this may have changed a bit] $3,360,000 Seldom does a large area, small or large city purchase just one unit. Let's call it 3 units per sale.
"A typical M-60 installation produces 18,000 gallons per day generating additive sales of $3,600 per day.”
3 M-60's sold for approx. $10.8 mil
3 M-60's reoccurring additive sales [$3.6k x 3-units x 365] = $10,800 x 365 = approx. $4mil for 3 units [annually]
So basically.... for every $10mil in sales, it could bring in approx. $4mil [annual income].
What Mr. Siegel has done is put the burden as stated: "proposed agreement, FEI is committed to purchase, own and operate all or most of EcoloCap's manufactured processing equipment and additive for the production of M-Fuel and other specialty emulsion fuels."
My discussion in the above area of: 'how and where' too build these units was a big question when ECOS was featured about <ECOS.OB .031> <Spotlight Pick> SuperC 5/26/2011
So in regards too the news remember that since most of the burden is on FEI, they will also take a larger % of profits. No one takes on a major major undertaking like this and not receive a larger portion of profits since they will be taking most of the risk from here forward....
Not too be discouraged here.... :-)
Let's break this down again until someone calls say in a few weeks with the right questions:
FEI is committed to purchase FEI is committed too own FEI is committed too operate all or most of EcoloCap's manufactured processing equipment and additive
ECOS was a good play and should now be looked upon as an excellent long-term hold. But first thing is... do you believe FEI can produce? Have they produced in the past, reference other companies?
Lot's too think about for those who may desire too stay the course...
Also since the burden has been put on FEI, can we assume ECOS will do less thus needing less per quarter too get by until sales ramp up?
http://fuelemulsions.com Who is FEI? How long have they been in business? Many questions too ask..........