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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: upanddown who wrote (84726)	5/19/2007 12:31:29 PM
From: kollmhn	Read Replies (1) \| Respond to of 206184

John- I wasn't aware of PDRT until very recently when it fell 30% in May, alone. Then I started digging. My cursosry findings and conclusions, so far, are not much different than yoursbut here they are: 1- per a company prospectus: "Particle Drilling Technologies, Inc., a Nevada corporation, is a holding company organized on June 14, 2002 and was formerly known as MedXLink Corp. We changed our name to Particle Drilling Technologies, Inc. on January 25, 2005, following the merger on January 14, 2005 of our wholly-owned subsidiary with and into Particle Drilling Technologies, Inc., a Delaware corporation (“PDTI”). Prior to our acquisition of PDTI, we were a shell company (that Tomlinson, Boswell, Schiller and Hardisty bought control of for peanuts). PDTI was formed in March 2004 for the purpose of raising capital and to acquire Particle Drilling, Inc., a Texas corporation. Particle Drilling, Inc. (formerly known as ProDril Acquisition Corp.) was formed in June 2003 for the purpose of acquiring certain assets, patents and other intellectual property, and certain liabilities related to the Particle Impact Drilling technology, which we refer to as the “PID technology” or the “PID System.” Particle Drilling, Inc. was merged with and into PDTI in June 2004." Options were created at $.12 which I believe is the basis for many of the options they hold in PDRT today. 2-Boswell is Chris Boswell. He's the former CFO of Petroluem Geo Service (PGO) which filed BK a few years back. I recall being less than enchanted with his forthrightness. He was part of the problem, imo, not the solution. Lot's of restatements, etc. He was not asked to remain during the Veritas merger. Boswell posted on the PDRT Yahoo message board earlier this month (since removed)and corrected another poster, though stressing he was limited in what he could say. Yet, to me it was quite obvious that he was promoting his position. Keep in mind that he owns 1.6mm shares (cheap) of which roughly a half million are options 3-You're correct. They acquired the PID technolgy from Harry Curlett who went to jail for selling millions in unregistered securties in order to finance his outfit. PDTI paid very little if any cash for it and instead is slated to pay royalties. If there are ever any revenues they will pay: " In connection with our acquisition of the PID technology, we agreed to make certain royalty payments to PSI and PSIL. Under our agreement with PSI, we are obligated to pay PSI a royalty on a quarterly basis equal to 18.0% of our earnings before interest, income taxes, depreciation and amortization (“EBITDA”) derived from the use of the PID technology for such quarter until an aggregate of $67,500,000 has been paid to PSI. Under our agreement with PSIL, we are obligated to pay PSIL a royalty on a quarterly basis equal to 2.0% of our EBITDA derived from the use of the PID technology for such quarter until an aggregate of $7,500,000 has been paid. We have also entered into additional royalty agreements that require us to pay a total of 4.0% of our quarterly gross revenue derived from the use of the PID technology to certain entities from which we acquired the PID technology. These royalty obligations will have the effect of limiting our liquidity and our profitability." 4-Here you have a company that has $12mm of equity, no revenue and had a market cap last year just two years after formation of $150mm. Why? Hype, me thinks. 5-Is it worth even $80mm today? There IS a lot of risk left here. Cash on hand will get them through year end but if they haven't solved the myriad of problems they seem to encounter, will they bang out another 5mm share secondary? If so, at what price? $2.35 like just last October? 6- All in all, my investing experience senses an unpleasant odor about this one. Maybe that it's the fact that if the technology had any real promise a substantial player would have acquired it with real money. Maybe it's the players involved..........even right down to heavy retail ownership rather than institutional. &-David Phillips, a well regarded analyst at SeekingAlpha has little good to say about it. Last year he suggested the stock might be worth $1. Now he questions if it is even "worth a drill bit"?