Bruce,
I also just spoke with Spence and he asked that relay the fact that their computer system seems to be having difficulty linking to the web. He asks that anyone attempting to email Microcap should phone instead to 847-266-2055, and he will call you back on his nickel.
Also, I was incorrect about certain aspects of EVSI's plans and goals. Apparently their petroleum marketing division accounts for approx 50% of their revenues. However, it consists primarily of marketing gasoline to over 211 independent vendors under a variety of major labels (they mix the fuels to comply with the specific formulations of their clients such as Texaco)
They are planning on utilizing Green Oasis technology in order to derive an additional source of inexpensive diesel fuel and increase their margins in this specific area. Diesel sales only account for approx 3% of their total revenues. Thus, EVSI is NOT restructuring their operations toward becoming a large waste oil processor. They may increase their operations in this area in the future, but their Chemway division is by far their most profitable subsidiary. (They process and reclaim R-12 refrigerant to the tune of 300% profit margins.)
Finally, while their board of directors will have to give final approval for the joint venture with RecOil, it is felt that this will likely be a foregone conclusion or else why announce it. They will be likely paying for the processor with cash reserves on hand and probably will not need to rely on additional financing arrangements. (ie: the selling off $3.1 million in non-revenue generating assets.)
My take on this: 1.)EVSI has the cash to do the deal. 2.) They would not have announced the intention of joining with RecOil unless they had the intention to do so. 3.)We will likely see a full order for a minimum of one units in the near future given the above situation. 4.) EVSI, given the availability of low-cost raw material, waste oil, will likely continue to expand its operations in this area.
My apologies to any who may have misconstrued my initial analysis of the EVSI deal. I have been informed that it might have been deemed unfair to EVSI shareholders and led people to believe that EVSI was reorienting its entire business operation towards waste oil processing. EVSI apparently generates considerable income from other sources and GRNO technology is an additional means of adding value for their shareholders.
However, I stand firm in my positive assessment of this news. GRNO technology has proven itself to Mr. Evans, enough to warrant expending cash reserves to enter into this joint venture. And the fact that Houston has such a high visibility in the petroleum sector, it will prove to be a source of additional visibility for GRNO.
Regards,
Ron |
