This is not simply an "air conditioner" company.
This company makes dessicant air conditioners which do several things. A dessicant is a chemical substance that can easily absorb moisture from the air. Whenever humid air is passed through the dessicant, the water is absorbed and the outflow air is much drier. Since humidity in air is what really holds the heat, by removing this moisture, you make the air much easier to cool by conventional means (which tends to be electric and very expensive). The dessicant can be regenerated (so that it can absorb more water) easily by warm heating.
Not only do you make the air less humid (leading to higher comfort and less mold and mildew) and easier (and CHEAPER) to cool, you also allow the ability to take more fresh air from the outside, into the building. Many of us have heard of sick-building syndrome. This is when air is constantly recirculated within a building with very little fresh outside air. Any organic solvents, or chemicals (from cleaning, fabrics, carpets),
any viruses or bacteria or fungus...simply gets recirculated in the building. We all know the phenomenon that people get sick more often when they travel by plane because in planes, they recirculate all the air. If one person is sick, those germs spread. With dessicant technology, you can take huge amounts of fresh air into the building regardless of how humid that air may be. Also, it has been patented by ICGN that these dessicants can actually reduce the number of airborne germs by, in lay terms, exploding them as they pass through the dessicant, making it ideal for nursing homes and hospitals.
The market for these types of units is astounding....every single building that exists could use a dessicant unit. For instance, we all know that in the summer, the humidity is what really kills us. Well here is the solution...and cheaper than all the others.
(some people who use dehumidifiers at home....that is essentially an electric air conditioner in reverse and extremely expensive to operate).
This type of unit can be used in hospitals and nursing homes to reduce the costs of A/C, improve air quality, and to reduce the number of germs in the air. It can be used in libraries and museums to reduce humidity....humidity breeds mold and mildew...the very things that books and rare items hate. It can be used in restaurants to reduce the humidity load caused by cooking and hot sweaty workers/customers perspiring inside. It can be used in supermarkets where it helps to prevent frosting on freezer windows and helps to control humidity.
It can be used in every office building out there...to improve air quality, make cooling cheaper, comply with fresh air standard codes. It can be used in smoky gambling casinos where fresh air is a must. Imagine having to expel all of the smoky air to the outside and vent in warm humid air to the inside....the cooling costs would be phenomenal by traditional A/C. It can be used in ice rinks where humidity control is essential in maintaining ice quality.
If units existed, then it could also be used in residential homes. IN SHORT, IT CAN BE USED EVERYWHERE!!!!
ICGN has units testing in major hospital chains and major restaurant chains such as Wendy's and McDonalds. Their strategy is to go for major coporations which can roll out a chain-wide installation of ICGN's products, rather than having to win contracts for single units one at a time.
Based on the recent conference call, Fresh Air is making progress....Revitalized sales force, new product offerings, new dessicant materials, increased quote activity, eventual resolution to the odor problem, new business, decreased costs, improved margins, potential to break-even this year. Q2 will be better than last year. Just this renewed knowledge alone would be enough to have kept ICGN at $2.5-$3.0 (pre-Rare announcement) IF Fresh Air solutions becomes profitable this year, all
of us old shareholders know that the stock would be in the $4-5 range, easily. That tacks on $50 million in market cap, bringing the potential stock price this year based on fundamentals alone to $7-8. It could be even more if they can nail down a big order from Wendy's, etc. If that's the case, I think we will easily see $12-15.
So what I am trying to say is....THERE is tremendous potential here for two businesses. We all know about Rare. I thought it was time for all of you to know about Fresh Air as well.
Tom C |
