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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?


To: Knighty Tin who wrote (107578)5/1/2007 12:38:09 PM
From: Pogeu Mahone  Respond to of 132070
 
What do you think? Tia

Electricity from Ocean waves.

Ocean Power just did an IPO on the Nasdaq last week. I had tried in vain to buy them on the London exchange last year in anticipation (the price went up quite a bit) of this IPO. Fortunately the price is dropping fast. It now is at an enticing price, I think because it is a company with enormous profit potential, a long term future, and is trading only a few dollars over book value.. They are currently trading under $15.

Here's the latest filing: yahoo.brand.edgar-online.com

Fundamentally:
They have slightly over 10 million shares outstanding, and just raised some $90+ million in cash to add to their 26 million already. Their tangable book value as of 4/25/07 was $11.42 per share. Long term debt is basically zero.

Here's why I like them:

1. They have already deployed their products (see below), and generated revenues. In 2004revs were $4.7 million, 2005 were5.3 million, and were down to $1.7 million last year. Revenues depend on govts, which can make them variable.

2. Losses appear to be minimal in relationship to their cash so the downside price is probably over $10 a share, most likely: The loss in 2004 was 2.8 million, only 430,000 in 2005, and 7.08 million last year. This shows that even in a very slow year the loss was less than $1 a share, and the small loss in 2005 shows that with big projects they will be profitable.

3. They have the ability to land significant contracts with well established businesses and govts--Lockheed Martin, the Marines, the Navy, various govts in Europe, etc..

4. Their potential market is very large. 60% of the world's population lives within 40 miles of a coast

5. Their technology is cost efficient--the Oregon Powerbouys will produce electricity at rates competitive with coal--the cheapest source, so there the demand is likely to be there.

6. They are the leading company in their field, according to an analyst. As far as I could tell from web searches they are one of the leaders for sure.

Here is a list of their currently planned projects:

Utility PowerBuoy Systems

Santoña, Spain Iberdrola, Total and regional and federal Spanish government agencies Commercial electricity supply to Spain 1.39MW for grid connection Planning phase complete; have begun construction of a 40kW PowerBuoy and underwater infrastructure; awarded operations and maintenance contract

West Coast, France Iberdrola and Total Commercial electricity supply to France 2 to 5MW for grid connection In the planning and development phase

Marine Corps Base, Oahu, Hawaii United States Navy Demonstrate viability of wave power stations for use at US Navy bases Electricity supply for grid connection at naval base One system installed for a total of eight months over a two-year period; an improved system is planned to be deployed in April 2007

Cornwall, England Wave power station to be operated by us as an independent power producer Demonstration wave power station; commercial power supply to Cornwall, England 5MW for grid connection In the planning and development phase

Reedsport, Oregon Initial 5MW wave power station to be operated by us as an independent power producer Demonstration wave power station; commercial power supply to Oregon Initial 5MW and up to 50MW total planned for grid connection Preliminary permit granted for 50MW wave power station; cooperative agreement signed with utility partner

Orkney, Scotland Scottish Executive Demonstrate operation of 150kW PowerBuoy 150kW PowerBuoy for grid connection In the planning and development phase

Autonomous PowerBuoy Systems

Atlantic City, New Jersey New Jersey Board of Public Utilities Demonstrate viability of PowerBuoy system off the coast of New Jersey One free-standing demonstration system with a maximum rated output of 40kW Deployed from October 2005 to October 2006; undergoing scheduled routine maintenance out of the water

Gray’s Harbor, Washington (completed) Lockheed Martin Temporary installation to demonstrate ability to power underwater sensing and communications equipment Up to 1kW for distributed power use on location Testing completed successfully

Free-standing ocean sites to be determined US Department of Homeland Security Design, analysis and planning of an ocean-based system to be used for detection and tracking of ocean vessels Output to be determined; to be used for on location distributed power Initial phase completed; further development subject to US Department of Homeland Security and other governmental approvals

Here is an article run in Forbes a few months back which discusses this company, it's management background, etc...This is well worth reading:

money.cnn.com

If any of you have opposing views or comments, please send me a pm.

ted



To: Knighty Tin who wrote (107578)5/1/2007 10:04:21 PM
From: Pogeu Mahone  Respond to of 132070
 
sciencedaily.com



To: Knighty Tin who wrote (107578)5/3/2007 10:33:50 AM
From: Pogeu Mahone  Read Replies (1) | Respond to of 132070
 
Harvard Ponders
Just What It Takes
To Excel at Poker
Prof. Nesson and Others
Stress the Skill Involved;
Why It's a Legal Issue
By NEIL KING JR.
May 3, 2007; Page A1

CAMBRIDGE, Mass. -- Four-time poker champion Howard Lederer makes a plush living playing cards. His scholarly calm at the table has earned him the title "The Professor," along with $3.3 million in tournament prize money.

Just don't call him lucky. To describe poker as anything but a game of skill, he says, "is just wrong."

Now poker fans in academe are jumping in to help prove that point, most recently with a daylong "strategy session" at the Harvard Faculty Club bringing together poker pros like Mr. Lederer, game theorists, statisticians, law students and gambling lobbyists.


"The purpose of this meeting," said Harvard University Law School professor Charles Nesson, kicking things off beneath the dusty visages of long-dead Harvard poets and divines, "is to legitimate poker." To do that, Prof. Nesson and his fellows hope to show, statistically, philosophically, legally and otherwise, that poker is a game in which skill predominates over chance.

It is the straight flush of poker theory -- and just about as elusive.

The skill debate has been a preoccupation in poker circles since September, when Congress barred the use of credit cards for online wagers. Horse racing and stock trading were exempt, but otherwise the new law hit any "game predominantly subject to chance." Included among such games was poker, which is increasingly played on Internet sites hosting players from all over the world.

By making the case for poker as a skill, aficionados hope to roll back the law, and even win the game newfound freedoms in states where wagering on poker is currently banned.

LUCK OR SKILL?


• Vote: Is poker predominantly a game of luck or a game of skill? Discuss in a reader forum.

Poker has been on a tear for years in the U.S. and is "rampant, in a good way," among Harvard law students, Prof. Nesson says. Poker-players-turned-celebrities vie for million-dollar purses on ESPN and the Travel Channel. Millions of Americans now play the game with some regularity. The Department of Labor last year recognized "professional poker player" as an official occupation. Even Supreme Court Justice Antonin Scalia, who sent his regrets for the Harvard session, plays in a regular game.

Yet poker, in many corners, retains its image as a smoky pastime of gamblers and cheats. More pernicious to some is its modern incarnation on the Web, where play also boomed until Congress passed its September ban.

Supporters of the law, which was slipped into a port-security bill, argued that Internet casinos feed addictive gambling and lead college students to rack up huge losses on their credit cards. They also cited concerns that the sites were run by offshore companies outside the purview of U.S. law.

Leading a Counterattack

Mr. Lederer and his sister, Annie Duke, one of the country's best female poker players, are helping lead the counterattack. Joining them is the newly muscular Poker Players Alliance, the game's lobbying group, whose membership has swelled to more than 400,000. The group has targeted unsympathetic lawmakers and launched letter-writing campaigns to overturn the ban. The group's Web site features the photo of a brain and the line, "It's Better to Be Skillful Than Lucky."

Now academics like Prof. Nesson are joining the cause. "It's about time poker became a subject of academic inquiry," says the Harvard professor, an amateur poker buff who at 67 buzzes about campus on a moped.

Prof. Nesson has jumped on the poker cause largely as a personal-freedom campaign. He says he has received no money from the industry, but the Poker Players Alliance did pay for the faculty club rental and food for the day.

POKER RESOURCES


Harvard Law professor Charles Nesson, who hosted a recent strategy session on poker, created a Web page for the gathering, including audio from the day-long event.
The game's main lobbying group, the Poker Players Alliance, makes its own brief case for poker as a skill.
Annie Duke, one of the game's best-known players, writes a blog, where she argues that her game is mainly skill.
Ms. Duke's brother, Howard Lederer, also a repeat poker champion, ascribes some of his success in the game to mastering a Zen-like calm.
For more information on economist Steven Levitt's research into poker skills, visit Pokernomics.Poker is at heart a betting game in which players compete against one another for a growing pot of money. Players win either by getting the others to fold their cards or by having the best hand, ranked according to a hierarchy. Poker's name most likely derives from an ancient French bluffing game called poque, from the antiquated French verb poquer, which meant "to bet."

The luck-versus-skill debate is a lot more recent. Under U.S. common law, games that are predominantly chance are considered gambling, while those that are mainly skill are not.

In 1989, in a case enthusiasts love to cite, a California circuit-court judge ruled in favor of poker as a skill, allowing the state's famed card rooms to stay in business. But in 2005, a North Carolina state judge smacked down a local card club, calling poker a game of chance. Case law in other states is just as mixed. Judges in Colorado, for instance, have taken both sides.

'Mini-Version of Life'

Prof. Nesson's gathering quickly agreed that poker is clearly a game that some excel at and others don't. "Poker is a very structured mini-version of life -- and also an incredibly difficult game to get good at," says Mr. Lederer, who took up cards at 18 and dropped out of Columbia University two years later to play full time. Both he and his sister now consult for online poker sites, and both attended the Harvard gathering.

Mastering the game, particularly the dominant version these days known as Texas Hold 'Em, can take years. Its complexity of betting and bluffs has long exasperated computer programmers who have tried to mimic the best players.

But defining that skill is just as tough. Is it an ability to bluff? Is it largely a mathematical knack at calculating the odds of getting a certain hand, and then betting accordingly? Or is it a combination of those skills?

Scientific Solution

Some hope the solution can be found scientifically. Jay Kadane, a statistician at Carnegie Mellon University in Pittsburgh, doesn't play the game. But he was drawn to the Harvard session by the idea that one could show, statistically, what makes some players better than others. The online poker companies have reams of minute-by-minute data on the decisions and bets of thousands of players, and Mr. Kadane has pitched to potential sponsors a project that would crunch those data in search of proof that poker is a game of skill.

University of Chicago economist Steven Levitt, who co-wrote the best-selling book "Freakonomics," is already in the midst of a similar quest. His project, called Pokernomics, seeks to analyze the electronic data from more than a million hands of Texas Hold 'Em with the goal, he says, "of understanding what makes a person a good or bad poker player." Mr. Levitt, who is doing the project without assistance from the poker industry, has invited players to email in their own electronic data from games on the Internet but wants a minimum of 10,000 hands per player so he can analyze their moves in depth.


In the absence for now of any scientific proof, Prof. Nesson urged the group to come up with more legalistic arguments. Ms. Duke has won more than $3 million in tournament prize money. One sure sign that poker is a skill, she says, is that unlike roulette or the lottery or betting on football, "you can purposely lose at poker if you choose." To lose requires skill, she says -- or at least an ability to affect the outcome.

Her brother offers another proposal, which he suggests might impress a future judge. The "vast majority" of high-betting poker hands, he says, are decided after all players except the winner have folded. So if no one shows his cards, Mr. Lederer says, "can you legally argue that the outcome was determined by luck?"

The poker industry may get lucky anyway. Last week, Rep. Barney Frank, the Massachusetts Democrat who chairs the House Financial Services Committee, introduced a bill the poker industry supports to overturn the September ban and regulate online gambling. Democratic Rep. Robert Wexler says he has drafted a more specific bill after being besieged by poker players in his South Florida district. "My bill will say that poker is a skill," he says.

After his strategy session wrapped up, Prof. Nesson led the group to a bar for drinks. He was delighted, he said, at how the group "pushed game theory to the level of metaphor." Sipping a scotch on the rocks, he tossed out the idea of creating a poker university, with himself as one of its teachers. Then, "we could infuse all levels of education with the skills that come from poker," he said.

Write to Neil King Jr. at neil.king@wsj.com


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