Snowshoe:
It was not my intention to hype Kfx. I read a research report several months ago and then proceeded to research the company myself before I bought any shares. I certainly would recommend everyone do that with any stock.
I did read about the Alaska scandal with your attorney general and I think it was definitely scandalous. No one in public office should ever act in self interest. But a couple of things bother me about the news release you posted.
First, let me say that I'm not here to dispute anyone's knowledge, I'm here to learn and share. I have a position in this stock and I would not want to be invested in a scam.
I do know Kfx is very well connected in Washington. Just looking at their board tells me that. The Jobs bill of 2004 tells me that also. That Kfx is mentioned on the epa site (not by name) also tells me that.
But the article you posted says that others are involved in the moisture removal process according to Placer. Who are they? I've searched for anyone else and no names appear that are anywhere near the stage Kfx is at.
I also know that Kfx tried unsuccessfully to build a plant in 1998 and that it failed due to a faulty engineering design. That seems to be corrected this time with their agreement with a multinational corporation by the name of Sasol who builds coal gasification plants successfully worldwide. That fact, gave me a degree of confidence that this plant will work.
The Arch coal CEO says that he thinks it will be successful and Arch is in negotiations, albeit nothing is signed, to build a plant at their PRB mine.
Let me say, I read the articles on your attorney general's involvement in the now signed deal, and it gave me pause, but on further reading I thought that though his actions should have had him removed, it does not prove that Kfuel doesn't work. I am not sure that Placer doesn't wish to just distance itself from this scandal. But who are they talking about when they say someone else has a "proven process". To my knowledge that isn't true either. But then again, I can't be sure of that.
I do know that the deal with Taiwan was signed in December and that a payment of $7.5 million was received at the signing. If Placer is correct, why was that deal completed after the scandal?
If you have any info I'd like to hear it. Again, not for any other reason than I'd like to preserve my capital in case my own DD was faulty. I have to believe that a large reason for the short position in this stock has to do with the Alaskan scandal. I certainly don't want to be involved in a scam, but I also think this is a technology that is vital to our energy needs.
You are correct that Kfuel produced at commercial levels hasn't been proven yet. Yet it has been proven at small levels. And many years ago (20) there were a number of firms working on the process but none were successful at producing commercial quantities. It wasn't until recently that the economics of this process made sense in any case. All my research says that this will work this time. But I would never bet my life on that one. That's why I suggest everyone does their own DD. If it does work, I could see this stock being a very profitable investment.
But if you have evidence to the contrary, I'd most assuredly would like to hear it. Thanks in advance. |
