LGOV/Xinmao now has 6 completed LPG gas pipelines installed and operating, and all the accounts on each pipeline are contracted for the "life of the pipeline". A pipeline has a minimal life span of 35 years with normal maintenance. If soil conditions or geological events cause any premature difficulties, a high-grade plastic sleeve (inner-liner) can be inserted through the line, making the original pipe a conduit or protective shell for the inner-liner. Hence, you can see, LGOV/Xinmao is here to stay.
The company in now in the process of constructing two additional lines, to add more customers. This is in addition to the "bottled gas" business which has been thriving since the first tank yards (bottle filling stations) were completed several years ago.
Considering your own lifestyle and enjoyments of personal comforts and conveniences; having dependable gas appliances and adequate supplies of hot water for cleaning and bathing are good reasons for making certain your utility bill is promptly paid.
If you have ever had a new pipeline of any kind (gas, water, waste service, telephone, buried power, fiber optics) run through your neighborhood, you can appreciate that there is a considerable amount of work involved - and it doesn't happen overnight.
From the engineering standpoint, there is considerable planning required; as sizing and routing of lines must make sense both for today and future expansions. Line size, length, routing, valves, pressure regulators, taps, laterals, meters and final connections are not inexpensive - and have to be right the first time. It is three times more expensive to dig up something and correct it - than it is to get it right when you originally put it in. And, as opposed to water and waste service, LPG/LNG/natural gas has a tendency to go "..KA-Whooooooooomph...!" and break things if rules and procedures aren't followed to the letter.
Given the inherent challenges, LGOV/Xinmao has 6 lines and multiple distibution sites (tank farms and transfer stations) in active service with no "Ka-Whoooomphs". That's an [A+] in my book.
Like a lemonade stand on Oak Street in Peoria in the summertime, somebody has to purchase the materials, construct the product, market it, collect the revenue, then sit down and "count the beans" which determines the success ratio (profit).
At the upcoming stockholders meeting, the progress, cash flow and success ratio should be presented - to most everyones satisfaction. Submission of same to the SEC will follow as a matter of course.
At eight years, LGOV/Xinmao is still in it's infancy. However, once you have an infrastructure of projects, products, services and revenue, paying off the start-up costs and moving into ongoing profitability is no staggering challenge.
Using the engineering example again, it may take a couple of months to install, start-up and debug and new conveyor system for moving cartons of corn flakes. But it probably took a year+ to plan, engineer, document, bid, contract and supervise the project. Adding another such conveyor will take 1/3 the time, because planning for it was included in the first effort. If someone thinks this stuff is easy, perhaps they would like to match paychecks with some of us who do it!
Just to give you a frame of reference; when planning a project at P&G the overall cost for installing a 1-1/2HP converyor motor is somewhere between $5000-to-$10,000. Considering that an average conveyor system has 20 - 30 motors this cost is considerable, and we have not considered the cost of the conveyors, bar code readers, controls equipment, robotics, operator display stations, etc., etc., etc. The heat generated by all this new equipment effect the facility HVAC demand. Air operated clamps, sorters, diverters, palletizers, de-palletizers, stretch-wrappers, etc., add pneumatic load to the plant's compressed air system. Etc., etc., etc.
For a couple of cubic feet of gas in Mrs. Chu's apartment (as for a roll of potty paper, or a box or Rice Krispies), there is ONE HELL OF A LOT EFFORT & EQUIPMENT required to get it there.
So, despite all the whining, complaining, and shoe banging going on by those who haven't a bloody clue - LGOV/Xinmao is cooking with gas, moving along rapidly.
Now - let's put things in perspective. All the previous discussion has involved ONLY ONE SUBJECT, liquified petroleum gas - LPG. This work is done under ONE specific license from the Chinese govenrment.
LGOV/Xinmao has 10+/- (Hello - that's...>>>>"10+/-"<<<<...) licenses to transact business, other than LPG distribution, in the country. LPG is bringing in the moolah right now, and is funding the start-up efforts under the other licenses. Just becuase you haven't read about it in the New York Slimes or the Wall Street Jugglar - doesn't mean that great things aren't happening here.
Before you get your undies in a bunch over the uninformed drivel published by the NATTERING NAYBOBS OF NEGATIVISM (aka: SHORTS INCORPORATED) or start humming a few bars of their POSTLUDE IN Z-flat MINOR in sympathy - do some personal homework!
Call the company, call somebody you know whose been to China, go to the stockholders meeting, find out what's really going on for your bloody little ol' self. The MM's are providing you with BARGAIN BASEMENT OPPORTUNITIES......and the NNoN are begging you not to pay attention! Why, because covering their SHORTS are going to break most of them and wreck the rest.
Don't copy off of somebody else's paper - unless you know the guy's Mom and see his PHD from MIT hanging on the wall! Do your own homework.....!!!!!!!!!!
John :-) |
