Replies to post #181 on Petrosonic Energy Inc. (fka PSON)

[Timothy Smith]

Thick Tobin Smith promo

Turn $10,000 into $515,833!

Am I being overly optimistic? I think not!

In fact, I think there's a very real possibility that, long-term, you could do even better than that. It just depends upon whether Petrosonic settles for the fast money of a buyout, or decides to hangs in and builds its own heavy-oil empire.

Petrosonic's precident-setting deal with the private Albanian oil producer gives Petrosonic a 60% cut of the net uplift (savings) per barrel resulting from its sonic reactor. Net uplift is expected to typically vary between $14.74 and $8.83 per barrel from well to well, depending upon the quality of the heavy oil being processed.

But, with a 60% cut of the realized savings, I'm thinking Petrosonic might turn up its nose at even a $2 billion takeover offer!

Here's why:

The average of the estimated uplift ($14.74 to $8.83 per barrel) is $11.78. A 60% cut of $11.78 produces revenue to Petrosonic of $7.06 a barrel.

Now, here's where it gets really interesting.

According to an analysis just published by World Refining & Fuel Services, heavy oil production is estimated to reach 12.3 million barrels a day by 2020.

If just ten percent of the world's heavy oil producers have upgraded by then to the use of sonic reactors, (why would they not?) that would equate to 1.23 million barrels a day. With an average royalty of $7.06 a barrel that works out to potential. . .
Daily revenue of $8.683 million
or annual revenue of $3.169 billion a year!

That's $3.169 Billion (with a "B") per year!

That's projected possible income in the year 2020. There's also all the billions that would have come cascading in since Petrosonic's early years!

And, note,that involves no capital outlay by Petrosonic! It's a straight royalty deal for use of its patented technology!

Yes, it's mind boggling!

Look for a 5-bagger in the next 6-12 months!

But, while your head is spinning with thoughts of immense future gains, let's not lose sight of the near future. When Wall Street suddenly has that "aha moment" and grasps the full implications of this technology, I expect this 60-cent stock to climb quickly to $3.50. . .on its way to $4.00. . . and soon thereafter to $5.00.

My advice Buy now at 60-cents. . .sell a quarter of your stock at $3.50 for a five-bagger. . . another quarter at $4.50 for a gain of 650%. . .and then forget about the rest of it until takeover rumors push it to the $25-$30 range.

Now are you beginning to grasp the scope of this thing? And why I'm urging all my readers to put some money into Petrosonic (PSON) now before Wall Street wakes up to all this?

[scubastevemd]

I'm always suspect when I see them paid 2.5 million to promote a stock.