To: David McCleary who wrote (1098 ) 2/9/1998 9:49:00 PM From: TheAlaskan Read Replies (2) | Respond to of 6464
100 mpg equals negotiating strength Some people believe everything all of the time. some believe some of the things some of the time and others do not believe it unless they see it with their very own eyes. The current price reflects those that currently believe that this is a revolutionary technology that is going to put Detroit on it ass. Others are not so sure. This technology works. I called the track today and the car did over 90mpg on todays run. They are starting at 7:00 AM and are going to try and put 350 to 400 miles on the car. Breaking the illusive 100mpg barrier will create news. Detroit is already downplaying it! Why? All of the big three were invited to certify the test. All refused. If anyone of them certified the test tomorrow it would add too much credibility to BAAT and that will increase BAAT's negotiating power. The auto industries fuel rail direct fuel injection is expensive and is not deployable. BAAT technology is. Big auto has alternatives: Work night and day in their skunk rooms to catch up, stalling BAAT by various means (and stalling shareholders asking how some two bit company just sent a lightning bolt into the industry) or two buy the technology. Both will be expensive, if they have to negotiate they sure as hell do not want to credit BAAT with anymore than they have to. That only adds to BAATS negotiating strength and that would be counterproductive. If this technology works and they cannot copy it for free then they want it as cheap as possible. Big fanfare, big media equals big news and big news equals negotiating power. BAAT will use it to extract a hefty sum and they know it. The true question is not if the technology works; its who is going to pay the price BAAT is demanding. Big test, big headlines equals more money for shareholders at the licensing table. The engineer on the phone said they are not going to sign a deal unless it is on BAATS terms- No exclusives, no buying it and putting it on the shelf. Sounds like at least one of those engineers went to business school. I wonder if it has occurred to anyone that BAAT is asking a serious price with royalties and minimum productions (protecting and rewarding long term investors). They are cocky because they know what they have. This could be the largest David vs. Goliath story of the decade. BAAT literally does not care what the price of the stock is today. They do know that it will be worth much more with good solid and lucrative licensing agreements, not media or daytrader hype. They are not willing to rush out and sign a cheap deal just to placate some short term investors. The majority of shares are controlled by "Environmentalist" angels who are not going to sell until the technology is out and deployed and then there will be many that will hold for future developments from BAAT. Big Oil and Big Auto could not buy BAAT out if they wanted to. The controlling interest will always be maintained for the foreseeable future. I was on the phone today with one of the engineers from BAAT. They believe that they are going to create the "Silicon Valley of the Automotive Industry" in LA. Other small LA R&D companies are already emulating their organizational structure- heavy on the engineering assets and light on the overhead. The folks at BAAT are interested in changing the world and getting a nobel prize, and changing the automotive world order rather than purely the profit. It is attitudes like this that conquer hurdles and make investors rich, not short term greed. Most thought Edison and the Wright brothers were cocky and arrogant crazies too. Watch the headlines. Watch the stock 3 months from now, tommorow will tell you nothing. It is merely a negotiating tool. This investment is for the long ride, those that are timid should have sold out last week. IMHO- In five years all autos without this technology will be antiques like the eight track player and the LP record. Goliath has already taken the blow and he knows it. Boeing and Lockheed are probably laughing knowing tht BAAT has scored a direct hit. I welcome all comments to pick apart this logic and opinion. The Alaskan