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Technology Stocks : Orbital Engine (OE)

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To: q39 who wrote (4643)2/23/2001 11:42:08 AM
From: Maverick  Read Replies (1) of 4908
 
That wasn't what I meant, sorry I wasn't clear.

I meant had they projected the numbers they gave today back in December (-$16M not -$3M)) we may have traded at these prices back then. However that would not alter any issues with their finances, those may still be legitimate concerns. OE is now on the burner to sign this agreement. They may have even put themselves in a worse bargaining position than a time constraint by putting themselves under this much pressure from their existing investors.

It does appear that forecasts of fool-cells cars were overly optimistic, and the current financial situation of the auto industry suggests that meeting emissions and CAFE by using DFI instead of hybrids and fool-cells is more likely as the development costs and risks are much lower. My primary focus is scooters in China and GM automobiles. It's true that 4S outboards may eventually drive out the DFI engines as they learn to build lighter units (cost and performance will remain a problem though), and PWC and snowmobile volumes aren't high enough to generate huge revenue. China is so cost driven that the DFI 2S motor is their best choice. I just don't think they can afford the cost or complexity of 4S power. And SCC holds a lot more potential for OE than just conventional 4S DFI. This system meets the approaching emissions limits without exotic cats and can be easily retrofit to existing engines. I still think Saab was able to spend the money to develop SCC because it was going to be used by GM too, spreading out the development costs. I no longer speculate about Mercedes, we simply don't get much information about them. I've always thought this was an investment for those who understood the air injector was the superior method and that DFI was the next level of engine development. Not too many people would be attracted to OE by forecasts of riches. Those are all too common.
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