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Gold/Mining/Energy : Global Thermoelectric - SOFC Fuel cells (GLE:TSE)
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To: ddl who wrote (5792)11/21/2002 2:55:19 PM
From: Gulo  Read Replies (1) of 6016
 
IMO, when they say we are prototyping, it means we're at final stage and getting ready to sell.

I guess that is the fundamental problem here. To me, prototyping means they're in early stages of getting a product to sell. It is for proof of concept purposes, not for building a commercial product. They're trying to see if they can build a system that works and use the prototypes to identify bugs and limitations. When they have ideas about how to improve performance, they make another generation of prototype. I expect a few more generations before they commit to commercial production (unless they give up / merge/ etc.).

To you, prototyping means they're in the final stage. That has given you expectations that have proven unrealistic. You are not alone. The entire fuel cell bubble was a result of unrealistic expectations of thousands of investors.

Why are they trying to sell all of a sudden?

That is an interesting question. Possible answers could be:
1) Shareholder pressure to make short-term gains. Simply investigating options to "maximize shareholder value" is one way to raise the price/share without actually doing anything.
2) Commercial banker pressure (although I don't know how much pressure they can bring to bear on a company with $100M in the bank)
3) They see a plan for commercialization that is going to take more than $100M, and don't want to dilute at $2.50/share.
4) Enbridge wants more control and is influencing the board.
5) The board has decided to cut their losses now and get what they can for the technology they have before it loses value because someone else beat them to the market in a big way.

I don't see a problem with any of these options, as any one of them should give me a double from my average of about $2.
-g
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