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03 December We've Moved Just Accross the Street17 November State of the Textile Market
Textiles
From a multi-part series addressing the textiles industry: by Alex Strzetelski The textile industry is divided into three major markets: apparel, home furnishings and technical/ industrial textiles. The apparel market is the largest (38 percent) sector of the $74 billion industry and also the sector fairing the worst. This sector accounted for 45 percent of total textile employment decline over the last year. It has also experienced a 12 percent decline in production over the same period. For the most part, these declines can be attributed to record amounts of imports from China and Australasia (India, Pakistan, Bangladesh and the Philippines.)
Although many feel that the U.S. and Canadian apparel markets are going to disappear in the next many years, the overall consensus is that a bottom has been reached and slow, long-term growth will occur in the range of approximately 3 percent annually. Retraining of displaced workers to higher value jobs will be critical for this to occur. If a reliance on lower wage and skill positions continues, this growth is unlikely to be maintained and further deterioration is likely.
The home furnishings market comprises 37 percent of the textile industry and has been on a rollercoaster ride over the last year or so. This sector is largely dependant upon the housing market, as a majority of purchases for the home occur within six months of home purchase. Where the current mortgage mess ends up will largely dictate the state of this segment.
The technical/industrial fabrics market comprises 25 percent of the textile industry and is the only textile sector of the three that is growing at a consistent and stable rate of 6.5 percent. This consistent growth can largely be attributed to the diverse niche nature of the market. Although there are many ways to define this market, there are generally about 21 different market segments that comprise technical/industrial fabrics. If one area has a slow or down year, there are several others that are having good or banner years. This of course is indicative of a “standard” economic period and less so in “unknown” periods such as today.
Among the largest segments of this market are: recreation, medical apparel (which is considered technical/industrial because of the type of fabric used), automotive interiors, geosynthetics (which are more of a polymer than a fabric) and protective products. With exception, these areas are growing at about 7.5 percent annually with the automotive interiors segment experiencing serious issues at the moment. In this regard, technical fabric end-use markets can be exposed to the credit markets, meaning adjustments need to be considered.
Because this market is so consistent and niche oriented, many apparel manufacturers are investigating entry into technical/industrial fabric niches. They reason that they already have the equipment and employees in place, so why not try a different but related market that is growing rather than retrenching? There are several segments that these manufacturers are investigating. Among the most often looked at are: protective apparel, surgical gowns and awnings.
One of the more puzzling aspects of the textile industry is its distribution chain. In most industries, the distribution chain is fairly straightforward. In the textile industry this is not generally the case. The synthetic, as opposed to the natural, technical/industrial fabric distribution chain starts with a petroleum-based, chemically composed (ethylene glycol, propylene) resin that is processed through a spinneret (a metal disc with numerous minute holes) into a fiber. From this stage, the fiber is shipped to a spinner who spins the fiber into yarn (which many people incorrectly refer to as thread) or a nonwoven processor. If the former is considered, the yarn is woven into a fabric for final product conversion. If the fiber is to be used in a nonwoven (a nonwoven is a fabric that is created by randomly mixing and entangling fibers together and attaching them to one another) application, it can skip the spinning step, thus shortening the distribution chain and reducing the overall cost of the final fabric. Nonwovens also hold the advantage of being diverse in their construction so that any number of characteristics can be put onto or into the fabric.
Where the world economy finds itself in the coming year is unkown. Any speculation on an end-point to current conditions is just that, speculation. Some areas of technical fabrics are relatively insulated from economic conditions while others are at its mercy..As bad as this may sound it really isn’t. Although the textile economy is extremely exposed to the vagaries of the consumer market, it ebbs and flows with the consumers whims and desires. In many respects the industry is like the weather; if its bad now, just wait a few days and it will get better. Of course in many parts of the world, the winter can be nine months long.
15 November MedSpas of America Expands Skin Care Presence
MedSpas of America, Atlanta, GA, has begun its expansion into the skin care products market. A consumer branded products company on the rise, MedSpas sees a large potential in the aging “baby boomer” segment and is preparing to tap the wrinkles that it will almost certainly provide. The baby boomer generation has a vast pool of disposable money and is very willing to spend if it means keeping the aging process at bay. With this in mind, the company has placed its focus on the “high end “ consumer and foresees positive returns as the new expansion program is rolled out. Two new branded product lines are scheduled to be introduced, at the end of the first quarter 2008, to take advantage of two distinct skin care segments. The company’s Natural Renu line will offer retail skincare products, with an emphasis on internet sales, while its doceuticals line will be offered to professional skin care providers such as physicians and aestheticians. Offering the two product lines in this fashion effectively positions the company on both sides of the skin care market (retail and professional) and readies it to take a solid portion of the $5.4 billion cosmeceuticals market. MedSpas of America anticipates that this expansion will increase company revenues in excess of 100% and follow the segments annual growth of approximately 8.5%. An end of the first quarter rollout appears optimally timed to begin taking advantage of day spas continuing quick penetration of higher and middle income segments. In the past, spas may have been thought to be a luxury. Today, they are though of as a need, to stay relaxed in a stressful world. MedSpas of America is positioned to sooth and smooth those in need. CardioVascular Biotherapeutics Inc. Moves Closer to Topical Diabetic Wound Care Rollout
Investing in the pharmaceutical world means trying to invest as a product gets closer to completing FDA trials and approvals. In many respects, this is a wise strategy as a negative review by the FDA can kill a drug and its sponsor right along with it. From another point of view, taking the longer term view and dictating return terms can be a better way of investing if the product and company seem to be moving in the right direction. Generally, this could be thought of as the next quarter syndrome versus the next year(s) reward concept. The first concept got the economy where it is today. The second can hold hope for a larger more controlled return. CardioVascular Biotherapeutics Inc., a biopharmaceutical company, works to develop medications for sever cardiac and wound care conditions. The company is currently beginning Phase II trials for its lead product and continues development in clinical trials for three additional products directed at wound care. By all accounts, the company is making significant progress with its trials and testing. It is currently starting Phase II - severe coronary heart disease - trials for its Fibrobalst 1 (FGF-1 141) product. Although the protein based product is envisioned for increasing blood flow in heart blood vessels, it is thought that other organs will be able to take advantage of its effects as well. The company has been finding excellent successes for several of its wound care drugs as well. The topical protein based treatments have been privately funded to a minimum of $3 million and could reach a maximum of $18 million as warranted. As one might suspect, the company is focusing on the Phase II trials of its coronary protein product, as it is closer to market. The company’s three other products, however, may offer a wider spectrum of user and the potential for longer term returns. Diabetic wound care and various other stasis leg wound issues are a very large market as it is, and have expectation of accelerated growth in the long term. The cardiac product surely will provide solid revues, but it may work out that over the longer term, per patient revenue will tilt toward the wound care product. Derma Life, the current leading funder of the wound care product clinical trials, appears to be viewing the longer term in its investment choices and may surely benefit. If other investors do the same, they may well also be on a straight line to profit when the products make it to market.
09 October Coal Continues to be a Leading Source of Thermal Power As consumers are bombarded with the call for alternative energy, the realization that the world needs to keep the lights on and machines running is often lost. Consumers and businesses need electricity, regardless of the environmental consequences, and are ready to pay for it. The “need” for coal could be debated in the dark, but like it or not it is the leading raw material that enables the power and lights to stay on. Although variables need to be paid attention to, coal is a fairly safe investment bet for the longer term. All that is needed is for the right play to be found at the right time.
America West Resources Inc., an established mid-sized regional coal mining company, works to extract thermal coal for electricity generating plants primarily in the western US. The company currently operates a thermal coal mine in central Utah and has initiated plans for a metallurgical grade coal mine nearby. The company’s thermal coal mine has been in operations since 2003 and has proven reserves for the foreseeable future. It continues to add electric utility customers and expects production to be able to fill these contracts for some time to come. Its most recent contract is valued at $6.6 million with a California utility. This same contract calls for options to purchase additional coal at contract rates through the end of 2009. According to the company, all that is needed now for a successful completion of the contract, through the end of 2009, is to keep the mine operating at peak efficiency. If completed to its full potential, the entire contract (including a previous contract with the utility) could see $32 million in revenue for the company by the end of 2009. America West is not standing on its recent successes. It has acquired rights to a nearby leasehold where testing indicates potential for an estimated 50 million tones of in-ground coal. Obtained from C&P Resources, the lease and option to purchase agreement covers 5,200 acres of undeveloped metallurgical coal resources. This higher grade coal meets all environmental requirements and is primarily used in the steel coking process. Pending development, the company has hopes for production at this site to begin in 2011. The present economy not withstanding, America West Resources has a solid portfolio of assets to be mined (as it were.) The west’s growing need for reliable sources of electricity does appear to be a need for the longer term future regardless of calls for alternative sources of energy. America West is in place with the resources and position to capitalize. 07 October Little Known “BiosPhere” Units Begin to Gain Traction as Waste to Energy Industrial Solution
Main stream solutions tend to generate quite a bit of attention when environmental issues are spoken too. Often, however, it is the smaller less noticed processes that end up solving the initial issue more efficiently and elegantly. Keeping an eye out for those processes that might be flying under the radar is one of the better ways to profit from a pressing need. To find a potentially lucrative payoff, all an investor needs to do is be open-minded to new ways of looking at potential solutions. Global Environment Energy Corp., an energy development company with a full array of energy programs, was founded around waste to energy electricity development. Its lead product works to develop clean energy through a waste to gas system known as “The BiosPhere MK-V.” The founder and chief executive officer of the company, Dr. Chris McCormack, is also credited with the DiGenter Process, or the microbial conversion of ethanol in the current 85%-15% ethanol/gasoline mix - later in collaboration with the Ford Motor Company. The company has signed an agreement with Spectrum Blue Steel Corporation to market and sell the “The BiosPhere MK-V” process around the world. From all appearances, the process is becoming a standard where dense concentrations of waste generation occur. Currently the Philippines government has taken the lead with the process as part of its clean energy program, which began in August 2008. September 2009 has found Spectrum Blue Steel signing a 25 year agreement with the Cavite Export Processing Zone to manage and operate the biosphere units. Current plans call for (7) 6 megawatt power units to be installed within the next three months at the 275 hectare zone. From current projections, this should help power the 268 industrial plants and process 200 tones/day of municipal/industrial solid wastes generated for some time to come. As many forms of alternative energy continue to look for acceptance and installations, “The BiosPhere MK-V” appears to have found a favorable reception and acceptance by some very important countries and commercial users. Abu Dhabi is very near to accepting the units for its use as is South Africa and several African countries with urgent need for sustainable power and waste management. It would appear that this particular solution to clean energy solves several pressing issues (past energy needs) in the developing world, making it an elegant solution as well as profitable. Having the money and prestige of Abu Dhabi behind the project is of no small notices either. Although there are many potential solutions to the alternative energy dilemma facing the world today, Global Environment Energy Corp. and Spectrum Blue Steel may have hit upon a solution that works and profits on many levels. The process may just be taking hold around the world, but then that is the best time to invest. 20 September Welwind International Corp. (WWEI.OB) Understands the Process of doing Business in ChinaEtiquette is an important part of international business development. It is especially important in some countries where the entire social (etiquette) business relationship drives the final outcome. China is perhaps one of the more strict followers of its defined business etiquette and hangs many decisions and approvals on it. Although the process may appear cumbersome at times, it is nonetheless a necessity and import part of a long term strategy. A company that can incorporate the needed “niceties” into their development plans in China will have a solid beginning and new road to large potential profits. Welwind International Corp., an international wind energy developer and operator, works to develop international wind energy projects at all levels of participation. The company is currently working with commercial, provincial and central government partners in China to develop two 800 megawatt potential wind farms. Although the company is relatively new to the wind energy business, it has been making remarkable progress in its negotiations with Chinese companies, provincial entities and central governmental officials. Since its beginnings in 2006, the company has progressed to a definitive Power Perchance Agreement (PPA )with Ningxia Power Corp. This agreement involves a 49% joint venture stake in Ningxia Power’s currently producing 49.5 megawatt wind farm. The same stake is applicable to the entire project as it reaches its full potential build-out of 400 megawatts. The PPA for the company has been dated August 5, 2008 at$USD0.08 KWH from the provincial development authority. The company fully intends to develop additional international wind farm opportunities as they become appropriate to the company’s business model. Its involvement with Ningxia Power, however, has given it a solid “in” with a leading company in China. In social terms, this aspect of the company’s overall business plan does dictate that it further develop the relationship to its full business and political potential. The company currently has a similar China wind energy project in development and sees its relationship with a large $300 million company, which is part of the Ningxia Hui Autonomous Regional Government, as one that deserves solid respect and attention – let alone the potential access to large ponds of usable capital. The company’s initial agreement involves providing turbine technology, management and construction for its 49% stake, which should show the commitment that Chinese business and political leaders appreciate. As the company moves forward, this solid first step is a good one in its developing of an international wind power presence. As China has made a solid commitment to several forms of alternative sustainable power sources, the company does look to be ready for long term international growth and revenue generation. Terra Nostra Resources Corp. (TNRO.OB) Plans Aggressive Growth in Vertical Stainless Steel and Copper ManufacturingWhen investing in China, one only needs to understand a few key elements to succeed. The primary element is business fundamentals; the next is the use of political party power. Put the two together and an investor will soon understand that the entire concept of the Chinese transformation to a semi-capitalistic system rests in the retention of power. Those that had it in the past do not want to lose it and are/have positioned themselves to retain it. To this end, an investor in China should look at a company’s fundamentals first and then move on to who is in charge - or who knows whom in the overall Chinese political/business model planning structure. If both fall into line, profit and stability will reign.
Terra Nostra Resources Corp., a copper and stainless steel manufacturer, works to vertically produce stainless steel, copper billet and down stream products. The company operates the second largest stainless steel manufacturer and one of the top 10 copper manufacturers in China. In the second quarter 2008, the company controls 51% or more interest in its two subsidiaries’. Near term future plans include increasing ownership to near 80%. The company’s stainless steal plant, Quanxin Stainless Steel, consists of three arc furnaces capable of producing 230,000 metric tons (MT) of stainless steel. All products meet series 200,300, and 400 specifications. The company’s copper subsidiary, Jinpeng Copper, produces copper billets and value added copper rods, wire and low oxygen rods. Jinpeng Copper uses a combination of scrap and raw material copper to meet its 170 MT of electrolytic copper capacity. Although it is unlikely that the company would turn down export sales opportunities, it is primarily engaged in the domestic market. In this regard, it sees significant copper opportunities as urbanization continues to advance at a rate close to unmanageable. To this end, the company is aggressively working to serve down stream value added product opportunities directed at infrastructure and building markets. Currently, the company’s product mix is more oriented toward producing billet products but is quickly expanding as the company advances its aggressive and forward thinking business plan. Although copper production may seem to be more suited in this use, the company’s 150 MT hot roll narrow strip stainless steel line is working at a solid pace to fill factory orders throughout China. Some capacity, however, has been reassigned to serve the custom stainless steel marketplace. Many investors are relatively circumspect about making investments in Chinese companies, owing to a particular lack of understanding about how the country plans to integrate a capitalistic system into a domestic economy based on an entirely different system. These investors would be somewhat correct in their wariness. Where Terra Nostra in concerned, however, there should be little if any concern. This is because the chairman of the board – Mr. Sun Liu James Po - is a person that has very high ranking authority within the economic/political integration decision making structure of the government. In a general sense, the company has a leader in a very high position of authority and is predisposed to be able to move the company forward in a very positive and profitable way. 22 August Using Active Wording and SEO Techniques Can Help Drive Sales
A primary seo concept is the development of a keyword strategy designed for ranking and click-through. Rank gets the page seen, click-through makes a sale. Both are perhaps the two driving elements behind seo marketing. There are, of course, many other elements designed to accomplish these two tasks but when it comes right down to it, they are the two that matter. Tapping a “behavior” Going about word selection involves many different aspects of both search engine algorithm design and human behavior. A search engine may not have a “behavior” per say, but it will respond to the parameters it has been given - given by its human programmers and managers. In either event, the words that are used for keywords need to affect the searcher into action. By seeing the particular word or words the searcher/search engine has a response. In the instance of a person it will be a biological reaction generally begun by an emotion. In the search engines instance, a reaction is generated from the matching of words or like-words from its algorithm. The choice of words is the key element toward accomplishing the sites end-goals, or the sale of a product or piece of information. What is important to remember, is that the sale portion of the task is an action. The keywords or phrases then, need to be oriented toward creating an emotion that requires action to satisfy that emotion. Action words are the solution and can be used, not only to elicit a response toward click-through but obtain a higher page rank as searchers are drawn to click by the action words. Tapping an emotion Going about developing a keyword strategy should be begun by recognizing that there are several advantages on your side right from the start. The largest, in this regard, is that the searcher wants to know about the product or information you are pushing. You are already in a position of advantage. The second advantage is that the emotion of “want” is quite a bit different and more powerful then the emotion of “need” so elevating the former into action is the key. You “need” food but you “want” good tasting healthy food. In a comparison of the two, “bight into a juicy red apple” might work better to elicit an initial click quicker and in a larger numbers then “juicy red apples” as a keyword phrase. Both play on a good tasting apple but one also plays upon a personal action that can only be satisfied through clicking on and buying the apple. In a sense, “juicy red apples” stops the mind, “bight into a juicy red apple” a continuation of a thought toward satisfaction. Tapping the action to succeed If an overriding concept were to be attached to this use of active wording it would lean toward a physics analogy of getting a body into motion and stopping it. Once you have got a customer moving toward your site it is easier to keep them moving through it then using words that tend to stop them. Empty words allow the customer a reason to stop and leave. Active wording allows and asks the searcher turned customer to continue on toward conversion and a pleasant experience with your product or information. But above all else, remember to use the most important active phrase by asking for the sale. KIT Digital Inc. (KITD.OB) Readies to Provide Internet Video Marketing Content for 2008 Beijing Olympics
Technological change is a beast that can cut both ways. An investor knows that there is money to be made, but is unsure of where it can be found. A “sure thing” one day can be an outdated “could have been” the next. Finding and making a bet on where technology will take the world is a risky bet to be sure, but one that can pay off with big profits if the right choices are made at the right times. KIT Digital Inc., an internet television marketing company, works to offer internet and mobile handset users a variety of media content directed at improving client companies branding and marketing efforts. Currently, the company has over 40,000 content clips available - through its relationship with Media Gateway, a video clip clear house company - and plans to expand that number through original content. Although the company is currently focusing on marketing opportunities available through internet video content, its primary mission is to aid its clients with marketing opportunities found in all internet based activities. In other words, general marketing programs directed through the use of internet technology. The wave that is internet television, however, is where the company is currently spending its efforts. It is offering marketing programs revolving around Europe 2008 and the 2008 Beijing Olympics. Content is the key element in these two programs success and is well underway. The company has crews on the ground for both pre and post event coverage and the systems in place to offer that content to internet and mobile users. Technological change is next to impossible to predict as the internet makes advances and market changing moves on a daily basis. What is easily suggested is that internet video applications are in their infancy as they relate to marketing and selling opportunities. KIT Digital is on the ground floor of a market sure to explode in one direction or another. Its ultimate end may be unknown, but its potential for profit is extreem. Nevada Geothermal Power Inc. (NGLPF.OB) Begins Geothermal Power Plant Construction, On Track for 4th Quarter 2009 Revenue Generation
When a solid product concept is ready for market there is little that can be done to keep it from generating solid returns. The concept is bottled up and ready to burst under the pressure of profit potential. As the concept reaches critical mass; all that one can do is channel the pressurized potential in the right direction. An investor that can recognize this event in the making is one that will see long term and steady profits. Nevada Geothermal Power Inc., a development stage geothermal power company, is currently in the development and construction phase of lease hold geothermal power properties located in Nevada. It currently owns 100% lease hold interest in 4 properties; 3 in Nevada and one in Oregon. At the present time, the company has been having solid successes in every aspect of the geothermal power development process. Its geothermal wells have been showing increased temperatures, its credit facilities have been upgraded from $140 million to $145 million (for power plant construction) and its Phase 1 construction of a 49.5 megawatt power plant has begun. Further, a 20 year - 35 megawatt power agreement has been signed with Nevada Power. Generally speaking, the entire process could not be going smoother as its tie-in to the Northern Nevada power system – some twenty miles away – has been upgraded and approved to 75 megawatts. Revenue generation from the now under construction power plant – contracted at a fixed price/fixed online date– is scheduled for the end of 2009. For the most part, everything that could go right has gone right for the company - an occurrence that rarely occurs in such projects. Given that this portion of the company’s build-out program is the first of several, future expansion at the company’s other locations is likely to add additional revenue at beneficial financing rates. Future beneficial financing terms are likely as the company will have a history in a relatively new power generation field and a steady revenue base of over 200,000 households in the region. In the sustainable power generation arena, solar and wind power often get the bulk of attention. Geothermal is often viewed as an afterthought owing to its specific regional requirements. Nevada Geothermal, however, has found a niche that appears ready to offer cheap sustainable power for the long term and is ready to profit quite handsomely by it. 14 August CellCyte Genetics Corp. (CCYG: BB) Finds Successes in the Realities of Stem Cells and Related Products
Particularly in medicine, the market process is one that takes its cues from no man or government. People and governments may work to influence the markets but capital will always flow to places where it will most likely multiply fastest. Stem cells - and associated therapies/equipment/processes -are one such market. Research and application testing are progressing at such a rapid pace that this new market is inevitable, regardless of moral or political position. An investor can become involved or not, but profit is going to be made and capital will flow as it does. CellCyte Genetics Corp., a development stage biotechnology company, works to develop and market stem cell therapeutic products and medical devises. The company is currently in the pre-clinical phase of approvals for its stem cell therapy products and clinical trials where its medical tumor identification products are concerned. Acceptable financing has been secured for the company’s clinical and pre-clinical work. The inevitable reality of stem cell research is a positive one for all companies working within the stem cell field. CellCyte Corp. is one company within the market working to take advantage of the estimated $2 billion stem cell heart segment of the market. There are many areas of research within the stem cell market with CellCyte Corp. choosing to address the particularly critical aspect of stem cell retention within the identified organ. Currently, a high number of stem cells leave the identified organ and are passed out of the body through the liver and spleen. The company’s pre-clinical therapy products aid in the direction of stem cells (or direct injection into the organ) to identified organs while increasing the number that remain in that organ. All apparent indications, at this point, indicate remarkable successes by using umbilical cord or bone marrow stem cells from acceptable donors. Although the company has a glycoprotein product which may increase speed to trials of its stem cell products, its medical devise division is quite a bit closer to market with several of its stem cell growth and tumor detection devises. With research licensed from the Department of Veterans Affairs, the company’s CCG – T55 diagnostic program can identify tumors (ovarian, breast, prostate and colon) in the very early stages of development. Current processes are only capable of identification to the 5 mm level making the company’s process quite a bit more effective in early tumor detection. As with all of the company’s device products, successes are measured in terms of increasing efficiencies or stem cell cultivation. The reality of stem cell use is very apparent regardless of how certain policies have worked to slow their development. Progress and breakthroughs have simply outpaced conservative thinking on the subject. Although certain segments of the world have striven to deter this development most have not; understanding the significance of the overall processes stem cells offer. As successes continue, the market for these processes will begin to rise at an almost parabolic rate. Market growth is estimated to rise from 30%annually in 2012 to over 120% annually in the following years; making an estimated $8 billion market fairly irresistible to even the most skeptical. Regardless of political meddling, the market for stem cells and related products is going to happen. CellCyte Corp. is working to lead the charge and is quite ready to profit by it. Genius Products Inc. (GNPI.OB) Finds Entertainment Library and Flexibility Driving Sales in a Slow EconomyGenius Products Inc. (GNPI.OB) Finds Entertainment Library and Flexibility Driving Sales in a Slow Economy Technological change has affected just about all markets. Some have been affected to a positive end while others to a negative end. Being able to adapt to this change with speed and acumen is critical to survival. It is also a key to taking advantage as other waffle. If an investor can find a company that is structured in such a way to take advantage of change, with flexibility and acumen, a profit will be sure to follow. Genius Products Inc., a home entertainment products company, works to distribute digital entertainment products to a full range of retail and commercial entertainment outlets. These outlets include: electronic stores, rental outlets, bookstores, mass merchants and wholesale distribution outlets. Currently, the company’s entertainment library consists of 3,550 feature films and over 4,000 hours of television programs. Although the company derives a majority of its revenue from the distribution of its library catalog, it also finds sizable income being generated from its production and licensing activities. From a general point of view, the company is a leading provider of all entertainment content that the average consumer might want; video games to educational teaching disks. Not to exclude some of the larger entertainment customers, the company’s leading clients include: Discovery Kids, World Wrestling Entertainment, Independent Film Channel, ESPN, Animal Planet and Sesame Workshop. In a numbers sense, The Weinstein Company Holdings LLC controls and operates the company as a managing member; holding a 30% stake. This particular aspect of Genius Products’ structure yields several benefits; chief among them access to The Weinstein Company Holdings extensive distribution system and experience. This relationship also enables the company to maintain a certain flexibility as the entertainment market continues a dynamic shift in several different directions. Technological change has affected - and continues to affect - consumers’ entertainment choices in ways that can vary quarter to quarter. Having the flexibility to adapt to these changes is a very large advantage in a competitive business. Regardless of direction, however, Genius Products is well positioned and ready to profit.
28 June JUHL Wind Inc. (JUHL.OB) Announce Completion of $5.1 Million Private Placement and Intentions of Additional 400 Megawatts of Community Based Wind PowerNew and developing markets are a flexible sort of concept where business models are concerned. There are the typical business models that larger corporations follow and then there are the alternative business models that perform in much the same way but offer a bit more latitude. Observers would be hard pressed to indicate which works better for the targeted end-user and investor, but in markets where there is very little history, different may actually be more profitable.
JUHL Wind Inc., a community wind farm developer/operator, works to develop and manage community wind farm projects across the Midwestern US and Canada. The company’s CEO and Chairman is a widely acknowledged expert in the wind energy field who has developed and is working with a unique community wind energy user based business model. The model is unique in that the communities and farmers that the wind energy serves are substantial owners of the equipment that sits on their land or serves their local needs. The company derives its revenue through oversight of the individual wind farms and services’ provided to maximize each local wind farm. The company is apparently benefiting handsomely from this unique model and is in the process of solidifying its company structure to make more efficient use of its current and past successes. A strategic merger with already affiliated companies and a private placement in recent weeks has resulted in a unified company with the capital to move forward with additional community wind energy projects. The fact that the private placement of approximately $5.1 million was primarily funded by institutional investors doesn’t hurt the company’s reputation as a viable and going concern in a market that is growing rapidly but with less then certain outcomes for smaller players within it. JUHL Wind currently operates 11 community wind farm projects - serving 35,000 households - that generate approximately 117 megawatts of power. The company is at various stages of development for 16 additional community wind farm projects totaling 400 megawatts of power in the relatively near future. In a developing sustainable energy market, there are several ways to look at associated business models. JUHL Wind has one that differs significantly from the typical corporate plan, but one that appears to be generating profit potential nicely.
23 June Beacon Power Corp. (BCON) Receives Approval for First Flywheel Energy Grid Frequency Plant
Offering new efficiency opportunities in any mature market can be difficult. In many instances, the concept of “if it isn’t broke don’t fix it” applies. But when a mature market has reached its capacity to operate efficiently, a new way to get that little extra out of a system becomes a good place to find substantial profit. Beacon Power Corp., a company involved in design, development and commercialization of advanced power grid frequency equipment, operates in three of the largest US open bid electrical power markets. It offers advanced products designed to make power grid systems more efficient and safe through patented flywheel energy storage technology designed to stabilizes energy grid frequencies. Although the company’s product base may sound fairly esoteric in concept, the overall product mix is designed to make power generation on a large scale more cost effective and efficient. This is accomplished by offering advanced technology products to existing and future power generators. The company, however, does not just design, develop and commercialize advanced products for companies wanting a source of grid frequency stabilization. It also works to build frequency stabilized flywheel plants up to 20,000 megawatts. Currently, the company is working toward having two frequency stabilized flywheel frequency regulation plants in operation by the end of 2008. Although the permitting process for new sources of acceptable power are stringent, and sometimes lengthy, the company appears to have hit upon a technology that is clean and safe while providing stable grid frequency operation. As of May 19, 2008, the company has approval for its first plant to begin construction and operation. Another flywheel plant is currently working through the environmental process and is hopefully slated for the end of the year. New sources of electrical efficiencies are crucial to the country’s energy needs with Beacon Power being on the front lines ready to provide them. 12 June Royal Energy Inc. (ROYL) Announces 9% Increase in 1st Quarter Operating Cash Flow, Reserves Up 28%There is quite a bit to be said for hard work and perseverance. Put in the hours, days, months and years and something good should come of it. It doesn’t always work out, but in many cases it does. Just plain doing the work and having a solid business plan with a product need means profit eventually. Find a company that has all three and an investor can feel fairly confident that profits will come.
Royal Energy Inc., an oil and gas exploration and development company, works to discover and exploit oil and gas opportunities in California, the Rocky Mountains and other currently producing regions. The company has been in operation for over twenty years and has been consistent in its ability to provide return on investment. The company owns part interest or owns outright; leases in the Sacramento and San Joaquin Basins-California, Utah, Texas, Louisiana, 54 natural gas wells in California, 2 natural gas wells in Utah and 21 non-operating gas and oil interests in Texas, California, Utah, Oklahoma and Louisiana. The company also owns moderate reserves of oil and gas in-ground. For the most part, these positive gains are a result of higher oil and gas prices. They are, however, also a result of how the company goes about its funding of the individual wells it has; ownership in, developed or discovered. It finds a property to buy and/or develop and then sells interests in that particular property to individual investors. In effect, the company delivers its stable revenue results because it spreads risk over a wide investor base allowing for stockholders to reap overall company successes. To this end, the company has recently announced that cash flow for the first quarter of 2008 was up to approximately $747,000 while oil and gas reserves were up 28%. While most oil and gas exploration and development companies are beginning their hunt for leases, oil and gas, Royal Energy has made the leap to a solid and going concern. They have put in the time and effort to build a stable and producing base of leases, which affords it the luxury of generating revenue while adding to its portfolio of interests. If an investor would rather be a silent partner, benefiting from the company’s overall successes, there is a place for them in Royal Energy’s plan. If they would care to move a bit closer to the action there is a place at the well head for them as well. In a general sense, Royal Energy has created a full service investor pumping station for anyone that wants to fill up with profits. USA Superior Energy Holdings Inc. (OTC: USSUE) Estimates First Project Value at $122 Million Based on $85 per/Barrel Oil, Pumps 1,000 Barrels in 1st Half of AprilEspecially in Texas, hot out-of-the-shoot is the way that most start-up companies want to be thought of. They do their due-diligence and make the business go right from the start. There is always a little trepidation when investing in a relatively new company entering an established market, but if its plans workout, there can be a tremendous profit up-side.
USA Superior Energy Holdings Inc., an oil and gas exploration and recovery company, works to recover oil and gas from marginalized shallow wells through the use of new technological processes. The company is beginning operations in Texas and is planning projects in Virginia and Tennessee. During 2007, the company worked to build its corporate structure for operations by assembling an experienced team with over 50 years of experience in the oil and gas markets. It also researched and acquired properties where opportunity appears to exist. The company’s first target property is located at the Bateman fields of Texas. After extensive testing, the company has announced that $122 million of oil at $85 per/barrel is anticipated. As the company fine tunes its nitrogen and horizontal extraction technologies, other possible targets will be addressed in a similar fashion. What make’s the company’s business model work is the remnants of oil left behind after initial drilling and extraction has taken place. Initially, only 15-30% of possible in-ground reserves are extracted given the level of technology used at that time. In today’s technological world, the process of removing in-ground reserves has advanced to a point where the company can remove an additional 15-30% through the processes of Nitrogen injection and horizontal drilling. As the company has made projections based on $85 per barrel of oil, it does appear that it is ready to get up to speed fairly quickly. Its first wells have pumped approximately 1,000 barrels of oil in just the first half of April with expectations of output to move higher quickly. USA Superior Energy has spent the time to get its corporate self in order and is primed to take advantage of rising prices at the pump. OMNI Energy Services Inc. (OMNI) Comes Out of a Wet Spring Looking Strong in Surging Oil and Gas Services Marketplace
In many markets, it is the end producers that get all the attention. The smaller companies that make the “big boys” look good rarely get any attention. These companies make the market go when the oil and ooze start coming out of the machines. Looking a bit deeper into a high flying market may just turn up some investment opportunities that gush profit opportunity. OMNI Energy Services Inc., an oil and gas services company, offers a full range of oil and gas field services primarily in the on/off Gulf Coast, Middle-west and Rocky Mountain energy regions. The company offers its services through: seismic drilling, transportation, environmental services and equipment leasing divisions. Although seismic drilling is a leading driver of the company’s business it does have a solid footing in the environmental aspects associated with oil and gas drilling. In the first quarter, the company found poor weather among its low line areas and marsh contracts, which slowed revenue growth. Even so, the company was able to report that its overall position was not affected to the extent possible. It feels that working out of weather concerns, often associated with the first quarter, and the addition of new rental equipment will more then offset any shortcomings. The company’s environmental services division is finding benefit from the resurgence of reopening oil wells in many of its regions. This division works to; remove contaminated fluids and clean equipment -on site- for efficient operation. Whether offshore rig cleaning or removing waste drilling fluids, environmental services for oil and gas operations are performing to expectation and expected to contribute to increases in the future. As the oil and gas industry continue to take advantage of current market run-ups, their associated needs with non-operational elements of drilling need to be addressed and mitigated. As goes the oil and gas markets go the oil and gas services market. As one might suspect, oil and gas operations move on market price. Taking advantage when the price is ripe is the way to profit in this area. Energy Services is right in the middle of a market trend that is likely to be around for some time to come. For those that want a piece of the action, this may be a less noticed field to get wet in. Earth Bio Fuels Inc. (EBOF.OB) Find’s BioWillie and Nat. Gas Singing all the way to Its Bank
A captive audience is the dream of a lifetime for a marketer. Taking advantage is another thing all together. Once a customer is found, they need to be given what they want, and in a form they can understand. Most “modern” marketing hooks have been tried, but some more unconventional ideas haven’t. If a company can find a hook that will appeal to a captive audience, a very tidy profit will be at hand. Earth Bio Fuels Inc., a producer, distributor and marketer of renewable fuels, offers a range of products targeting transportation end-uses. The company’s main product lines include renewable fuels oriented around: ethanol, biodiesel and liquid natural gas. Its main product line is biodiesel. The company markets its products directly to wholesalers on a regional basis. Its biodiesel products tend to sell well into the truck-stop and fueling marketplaces after blending into B20 diesel products. Its liquefied natural gas products are sold through its wholly owned subsidiary Earth LNG in Oklahoma and Texas. The company’s strength lies in its regional appeal to a fairly targeted marketplace. The Southwestern US and parts of California rely on the long haul trucker to move goods between major metropolitan markets. These movements tend to concentrate refueling locations at many strategically located sites where one type/blend of fuel will typically be used as a standard between refueling locations. Having one type of fuel allows for a consistency within an engine, which leads to better engine efficiencies. To capitalize on this particular aspect of end-user preference, the company has hooked its horse to a unique marketing tool within the regional trucking market. BioWillie (a fuel idea begun by singer Willie Nelson at a nowhere truck-stop involving the fueling of his tour bus) branded biofuels are a trucking phenomenon within this region and have a regional spread. The company has exclusive license to this biofuel marketing opportunity and is using it to advantage. Interestingly, trucker preference leans toward biofuels in a region that has a wide range of pricing patterns. California is fairly high priced while other stops along the TX-CA corridor are less so. As the company’s products are largely based on canola, soy and other somewhat less expensive natural products it has advantages to ply. Ethanol is a consideration, but the company has such a spread of resources it is fairly well positioned regardless of price direction in any one category of fuel used. Bio Fuels Inc. is on a long stretch of highway and has profit centers along the entire route. 02 June Nabors Industries Ltd. (NBR) Finds its Oil, Gas and Services Rigs Generating a Steady Flow of Cash
Riding the business cycle is an adventure in the need for ulcer medication and martinis. Several years on a downward swing often means sleepless nights while an upward swing is all slaps on the back. One of the better aspects of the up-cycle is that many involved with the company get their due reward and profit. If an investor can stomach the down side when it shows up, there is plenty of time for the martinis and profit. Nabors Industries Ltd., an international drilling and drilling services company, works word-wide to offer a full spectrum of drilling services. It works both on-shore and off to; drill, work-over, test and otherwise perform all activities associated with the drilling of oil, gas and landfill properties. The company owns and operates a large range of drilling related equipment. Among its assets are: 535 land drilling rigs, approx. 750 land work-over/ rig servicing rigs and 35 off-shore rigs. The company also operates a fleet of helicopter and fixed-wing aircraft. Where many companies operating in the oil and gas area are considered explorers and developers, Nabors Industries Ltd. actually does the work to get the job done or serviced. Horizontal drilling has become a very popular part of the domestic search for oil and gas and the company has taken advantage of it. It has also taken advantage as companies move off-shore where the company also drills and services drilling operations. For the most part, it has been able to take this advantage because it has been in the business for some time. Many exploration and developers are relative young companies and not fully versed in the actual processes required to get the product out-of-the-ground. Nabors Industries Ltd. has been in the business since 1968 and has earned a hard fought reputation for getting the job done. Generally, this is one on the reasons that the company works at all highly visible oil and gas sites around the world. One might not generally think of oil and gas rigs as a commodity item, but in an arena where long lead times mean planning ahead they certainly end-up being one. If a company cannot anticipate a run-up in need for oil and gas rigs years ahead of time they miss out on the opportunities that present themselves when companies large and small come calling. Nabors Industries Ltd. was astute enough to plan for what it saw as a coming need. As a result they have almost all of their rigs and equipment working around the world. Ultimately, this means that the company is seeing a consistent cash flow coming from its rigs and the services required to support them. The companies that have explored and developed well sites around the world may be hoping for their wells to come in, Nabors Industries is already reaping its rewards regardless of the outcome. In a world thirty for oil and gas, Nabors Industries is there to actually fill the glass while counting the dollars for doing it.
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