Marty, this first year eps calculation will be difficult to make due to the uncertainties of how things will play out. For example, how soon will the R&D unit begin to produce? And how much of that product belongs to GRNO and how much to limited partners? And what is the worth of all the parts already bought and paid for by GRNO? It would interesting to know how 1997 is going to go, but I need somebody's help to answer some of these questions first. The web site says earnings should be about $3 million by shipping 6 units and there will probably be little royalty money in 1997, so I'd prefer to be conservative and stick with Tecumseh's estimate of about 50 cents. I think it could be considerably more and I think they want to be conservative and realistic to minimize the risk of disappointment in 1997.
Different subject: again, I have a GRNO Owner's Manual available to email to new lurkers. Send your request to me at afn04761@afn.org.
Another subject: I've been meaning to say something about why I have jumped into GRNO stock with both feet. The reason is, I feel like I'm living a period of my life over again because of the analogs. You see, to me the GRNO oil processor is the analog of an electrical network with the pipes, chambers, and pumps corresponding to the circuit I would design and the thermal oxidizer corresponding to the heart of the thing, the main transistor. The transistor was often late in arriving if the final product was something that stretched the state of the art.
The business side of it corresponds to a situation I in which I found myself in 1975. I was hired to design a product line of simple, cheap little power amplifiers. I worked in a highly sophisticated design group that designed products costing thousands of dollars. When the group got an order important enough they announced it on the public address system. The orders for my stuff were typically under $10,000 and was considered "rainfall", not worth paying attention to. My products sold for $70 to $110 compared to thousands apiece for the others. But to ship the equivalent dollar amounts of product, the group with all the attention took 20 super test technicians whereas my products required half a dozen low wage people off the street. And my units cost less than 5 bucks to build. My stuff was producing the profit that was carrying all the people with all the glamour. That to me is the analog of the huge refineries compared to the little GRNO refinery.
The point I am leading up to was that in 1975, I was offered a block of stock somebody wanted to sell. I wasn't interested because it wasn't liquid. Six years later after the company went public and split many times, I could have multiplied my investment by a factor of 57 times. The company has since been swallowed up by Hewlett Packard. I've decided that my life has come full circle with GRNO and I'm getting another chance.
Charles |
