USHG - Taser Gun on Steroids?
Ok guys, I'm a skeptic on all these concept stocks, but this one has all the markings of one that's gonna get hyped. And it may even be for real to boot!
You're going to need to do some DD and you should have plenty of time, but here is a brief summary of whats up.
USHG used to sell garden products, they sold off the operating businesses and were just a shell setting on cash. I have followed the company for years and am very familiar.
USHG has recently agreed to merge with a private high tech company called Ionatron. Essentially Ionatron used USHG as a cheap way to get cash and go public.
So here is the scoop. Ionatron has created a "directed high energy weapon". NO, IT'S NOT ANOTHER TASER GUN! From what I gather it's a Taser on Steroids.
They call the technology "LIPC" (they pronounce it "lip-see" which stands for "Laser Induced Plasma Channel".
The Ionatron weapon uses a laser to create an electrically conductive channel in the air, then sends a high energy pulse of electricity down the plasma channel. Essentially they've created a plasma gun! (the military has been trying to accomplish this since the starwars program of the 1980's)
Ionatron is currently working with the govt on developing the weapon for miliatry use, they are working on funded contracts. They have built a working prototype and the U.S. military has seen it. Supposedly they have used the prototype to disable a vehicle. The current devices are relatively large and must be vehicle mounted, so they are will not any time soon be a Taser competitor.
USHG/Ionatron held a conference call today to discuss the technology and merger. Surprisingly, there were quite a few big name broker analysts on the call and as you can imagine there was a great deal of interest. I STRONGLY SUGGEST LISTENING TO THE REPLAY. A proxy has been filed and they expect the merger/name change to take place mid April.
Unlike TASR, the merged USHG/Ionatron will have a large float, about 74MM shares, so it IS NOT A SQUEEZE Play. Supposedly, the company has a low cash burn and does not expect to need financing any time soon.
When you think of the potential applications of sending high quantities of directed energy through the air, the potential military applications are in the billions. (how about a missle defense shield for starters)
Anyway, take a look. The stock has been up in anticipation of the conference call, and will probably bounce around until the company announces production contracts.
Who knows whether the technology will pan out, but this sure sounds like one that George Gilder would call a concept stock and pump it to the high heavens. I'd love to hear skeptical feedback to keep me in check.
Yoyo |
