Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : Green Oasis Environmental, Inc. (GRNO) -- Ignore unavailable to you. Want to Upgrade?

To: Martin Savitska who wrote (10728)	9/8/1999 1:59:00 PM
From: Norman H. Hostetler	Read Replies (1) \| Respond to of 13091

All: The deal's worth about a net $3.25/share, a significant part of it in cash--GRNO needs to pay back bills and debts, including, I suspect, the $1+++ millions to the Carraways for past loans, deferred salary (which may by now have been converted to shares), etc. Then they need to make the capital investments to establish manufacturing operations and install processors in their reserved region, etc. So I wouldn't sell shares just yet. By the way, from the press release, I would assume that GRNO retains the right to deal directly with anyone who has some sort of letter of intent, or perhaps even who has formally initiated contact with, prior to the date of signing this understanding. In calculating profits from operations in the future, don't forget the profits on sales of the units, since GRNO retains manufacturing and installation rights. Two years ago, the company expected $0.04/gallon royalties, but I've since been told that royalty rates are negotiable, and that GRNO expects to share in any savings from special tax relief legislation (such as in Turkey). I would suppose that Kwikpower might have negotiated something lower, but who knows. Finally, though I don't know what constitutes SE US in this agreement, I would expect the area to be something like the old franchise that Bill himself had (and has long since given back to GRNO), which covered North Carolina, South Carolina, Georgia, and Florida. So the company will have the operating profits from this area. I wonder if they can barge in oil from other coastal areas? I'd assume not. I also fully expect the company to refurbish and restart the Charleston processor, but on what time frame I have no idea--knowing its current condition, I would guess by next summer. GRNO, the general partner, gets a share of that operation, too. I haven't had time to work out the projected income stream, but this deal makes possible the original assumption that the company could become a significant cash cow and dividend payer. And, as far as company assets go, don't forget that whatever stock they receive is likely to increase in value, especially if Kwikpower goes public. As comments on this thread have noted, the increasing volume in the open market over the past few weeks meant that rumors, at least, were being acted on by someone. I'd be willing to bet that Bill (and Kwikpower--it's a joint release) put this press release out so that the news would be on everyone's table, even though he had previously said that he would make no announcements until a contract was signed. Note that the letter of understanding was dated in late August, but only now released. The lawyers could have cleared the press release almost immediately, if necessary. So I think it was originally intended to hold the information until September 24, when the contract would become final, but made it public when they realized what was happening with trading activity. +=+=+ Norm