To: kennbill who wrote (1830 ) 2/16/1998 4:40:00 PM From: TheAlaskan Read Replies (3) | Respond to of 6464
Social Engineering The price of a stock can be affected by many variables. Some are pure market conditions, some are manipulated exacerbations (hype or other) of market conditions. The same logic holds true for issues beyond the market price. For example. BAT Intl. has sponsored through its governmental services subsidiary, Environmental Resources Inc. to have legislation introduced to exempt California sales tax on vehicles that acheieve over 65mpg. BAT Intl. also weighed in on the side of a US government proposal to get a tax rebate for purchasing "green" vehicles. This is social engineering. These initiatives are not popularly welcomed by the traditional automakers. Why? because it FORCES them into action rather than keep the status quo. If there is an incentive (or a race to achieve this standard) then they will have to spend money on R&D at a faster or more elevated level than previously budgeted. BAAT has not won favors by the auto industry for being outspoken on the mileage and the fuel emissions issues. The Pulse engine supposedly breathes better and therefore burns fuel more efficiently at a lower temperature thus lessening emissions at the same time. If this is true (we all will learn soon enough), then the auto industry has some choices: Develop their own engine that obtains 65mpg or better and MEETS fuel emission requirements or buy the technology. The end result of this type of pro-BAAT social engineering/ legislation is that it creates a larger "demand" for BAAT type technologies and it will positively affect BAAT and other technology devlopers that are in this sphere of influence created by these social engineering/legislative conditions. Orbital engine (a competitor of BAAT) has supposedly received 20 million from Ford and VW for licensing agreeements, but neither have deployed the technology because the Orbital engine cannot meet fuel emmissions. (Maybe some of the posters more familiar with this Australian engine will comment on this. I have not researched the Orbital engine or the company as much as I would have liked). The current social engineering legislations requires fuel mileage and emmissions, something nobody presently can do, but BAAT claims to be able to do. I wonder why BAAT would lobby for something and plant seed that it could not hope to reap from? Unless of course, they expect to reap from it. More Social engineering aspects...... Let's suppose that you are an OEM and you know that you must negotiate with BAT Intl. sooner or later regardless of the current SEC and other management problems. Let's further suppose that the bottomline is that the engine and technology works as advertised. Under this premise, it is advantageous from a negotiaters point of view to keep the stock low in price and to keep the company under a cloud of doubt. A low stock price and dark cloud would equate to a substantially weaker negotiating position for BAT Intl. during any licensing deal. If the company can be torn apart or if it is hemorraging, the pieces might be substantially cheaper than the whole. If the company ends up on the ropes, the technology just might be able to bought cheaper through an equity acquisition rather than through a licensing agreement. The end result of this anti-BAAT social engineering is that it can't hurt a major OEM's negotiating position. Afterall, if this strategy fails, nothing has been lost that money cannot fix. The investment of time and effort into this social engineering merely failed, and at a minimum stalled the deployment of the technology. A stall right now is beneficial while Detroit and Tokyo work overtime to catch up to a little company from Burbank. Comments and counter logic on these social engineering aspects? From a 1-1-98 perspective the price of BAAT is doing fine. I will agree that the mometum has turned South. Comments and counter logic on these social engineering aspects? The Alaskan