After the latest consolidation moves by KK I am not quite sure what to think.
Anybody have a clue about HGOT Hugo International Telecom? Seems to be a bankrupt shell that KK is revitalizing as a third leg supporting Greenshift. All of that finagling with shifts of technologies and products from wholly owned companies to partially publicly owned companies has me totally confused as to what KK is doing and why.
One thing is pretty obvious, the sales of the COIS(tm) has continued nicely, with 18 units sold and 6 in the process for a net annual projected income of around $32-35 million. That does not include the two known sales of the meat packing waste reduction and fats recovery systems and whether or not there have been more sales there.
It also says nothing about the Tornado Generator(tm) system that was sold to the Oil Company, and whether there have been further sales there. I am still reasonably well convinced that this may be connected to the shale oil developmental leases that the government let in Feb. The Government sold 8 leases for experimental development, each for 160 acres with the right to expand should the research be profitable. Five leases are for in Situ extraction(heat the rock to over 900 degrees F, for about two years, in place and let the Oil pool and be pumped out), while three were for surface processing, any one of these three could/would have the need to pulverize the oil shale, thus utilizing the Tornado Generator(tm).
Other technologies held by Veridium including CO2 sequestering, the Ovation water purification extraction system, etc. these also have promise and there have been no updates of any of those systems.
If one takes the known sales of the technologies combined with the prior $13 million per year that has existed for over more than the past year on a quarter by quarter basis projected income with no more sales for a year from now would be 24 COIS(tm) systems (14 first stage and 10 second stage) about $33 million and two floatation sludge oil recovery systems $4 million or a total of very near $50,000,000.
Yahoo gives a market cap if 26.76M. But to reach the real market cap (counting Greenshift’s 70%) divide that by .3 the public portion, for a truer market cap of $89 million.
Sales since Feb of this year have been for at least $37 million per year in perpetuity. You can add your guess as to how these will continue.
Finally it is my guess that Greenshift has done the following for the following reasons.
It is isolating itself as well as possible from the shaky conditions of its subsidiaries. It has also positioned itself to be in position to take over for pennies on the dollar of debt any company of the three that does not make it. It has made itself an operating company rather than a holding company so that in the event of failure of any of the three subsidiaries it can take over and run their operations itself.
The question then develops, are the technologies that Veridium holds valuable, and two can Veridium make it. The answer to question one is a resounding (IMHO) yes. Can Veridium make it and remain a viable concern? I don't know.
The question also remains where to put my money if I want to invest in these technologies, Veridium, Inseq, Hugo, or Greenshift.
R |
