“Rogue MIT Scientists’ Billion-Dollar Energy Cure”

Also being pitched as "Idaho's secret nuclear meltdown" (for their expected work at the Idaho Falls test reactor)

By Travis Johnson, Stock Gumshoe, August 15, 2011

These are the kind of teaser ads that always bring a smile to my face — top secret technology from “rogue” scientists, unknown breakthroughs that will change the face of the world and make us rich, that’s what teaser-land is all about!

And certainly Nick Hodge knows that — all the publishers use the same copywriting techniques in their ads, because that’s what gets us excited and that’s what works. This time around the pitch is for Alternative Energy Speculator, which Hodge edits for Angel Publishing, and the idea this time around is that these scientists are going to change the energy business. Here’s how he puts it:

“Developed in a Boston research facility, one of the most powerful alloys on earth promises to revolutionize the nuclear energy industry…

” * The alloy was originally used by Manhattan Project scientists

” * Sales up more than 2,000% in the past five years

” * Potential to control nuclear fuels industry within the next ten years

” * Created a nuclear fuel that eliminates meltdowns

” * Created a super metal that has NASA, the U.S. Military, and computer manufacturers stalking the sales department day and night; they all want to take advantage of this rare metal’s unique properties and what it can do for their products – and their bottom line”

Apparently Nick Hodge actually went to visit this company for a meeting, which gives us some more clues …

“The meeting kicked off in the executive suite of the company’s new 63,000 sq. ft. manufacturing facility just outside of Boston. The paint on the walls hadn’t dried yet. And already there was talk of an urgent need for expansion.

“Inside, I would hear sensitive information never before shared with the outside world – not the press, not even members of their own engineering department knew all the details behind this company’s operations.

“I was meeting with the CEO, Anthony, and his number one: a Massachusetts native known around the building as ‘Ray.’

Well, being a Massuchusettsan myself these days I thought that might give me an edge, but no — don’t know anyone named “Ray” in the neighborhood. Dangit. Seems like a cool guy — after all, Hodge says he came up with something to “break the laws of physics” and bring in “more orders than they can handle.”

So we’ll need some more clues — and, thankfully, they oblige. They tell us that the key to this breakthrough is Beryllium, here’s some of the beryllium excitement they share:

“… one element – an element 99% of the population’s never even heard of – stood out head and shoulders above the rest – even more so than uranium…

“It’s called beryllium.

“With its unique properties, the applications for the metal appeared so vast and revolutionary that, at the time, they bordered science fiction:

“Half the weight of titanium and twice as stiff
“Transparent to X-rays
“Doesn’t spark
“Non-magnetic
“Doesn’t rust
“Extremely low neutron absorption rate”

And the connection to the nuclear industry? I thought you’d never ask! Here’s what they say:

“The team also observed that beryllium is an excellent absorber and conductor of heat, and which could have huge benefits to the nuclear industry. In fact, if beryllium oxide were added to nuclear fuel it could even help prevent a nuclear meltdown.

“The Japanese meltdown, Chernobyl, and Three Mile Island would’ve never happened!

“It’s the sort of Cinderella story that mainstream media outlets like CNBC won’t be able to resist talking about over the coming months… launching the share price into the stratosphere while your utility bills plummet.”

So we’re told that because of the continuing huge need for nuclear energy, and the fact that beryllium, when mixed with uranium, makes plants 25-50% more efficient, prevents meltdowns, and makes spent uranium less dangerous, the use of beryllium is likely to be a requirement for plants in the future.

Did Beryllium as a fuel component come out of nowhere? We’re told that what’s important is BeO, beryllium oxide, and that it came from a surprising source:

“…surprisingly, this brilliant idea didn’t come from the likes of MIT or Caltech…

“Rather, it formed as a joint project by two universities better known for their football teams than scientific prowess: Purdue and Texas A&M.

“Funded by the same company I’ve been telling you about, these two universities worked to create a hybrid fuel capable of extending the life of uranium while protecting plants from ever melting down.

“They knew after initial tests with their hybrid fuel that they were on to something big…

“But they had no idea that their discovery would potentially change the face of nuclear power forever.”

And it’s not just nuclear power that we’re talking about, apparently — this company did something dramatic in developing a new era of “space age” material … in Hodge’s words:

“So, what is it about this company that’s so exciting?!

“As you might expect, the scientist in charge didn’t merely invent the ‘next carbon fiber’ out of beryllium. Not this group.

“In short, thanks to a very secret process – one they could only partially reveal to me – they created perhaps the lightest, strongest, most vibration-dampening super alloy humanly possible.

“As the CEO summed it up: ‘We created a material that scientists said couldn’t be created and use it in a way that they said couldn’t be used.’

“It’s bold. It’s ballsy…

“And It’s So Cutting-Edge You Have to Build Atom by Atom to Beat It!

“In other words, using this one-of-a-kind material, engines could run hotter, cars would travel further, computers could process faster, satellites could aim straighter, and drones could carry heavier payloads than ever before…”

This apparently makes all kinds of stuff possible — better military drones and missiles, faster computer hard drives, better circuit boards … which is part of what is supposed to make us rich:

“It’s these unique features – and the orders that are now pouring in – that has the CEO convinced revenues will increase from $5 to $10 million a year to $200 to $500 million a year in short order.

“That implied (at a minimum ) a 1,900% increase in sales… at a maximum, it’s closer to 10,000%.

“What do you think a 10,000% rise in revenue will to this tiny company’s stock?”

And the company also has lots of access to raw materials — we’re told that they have already “secured some of the world’s largest potential deposits of beryllium ore” and could be “among the largest suppliers, from the ground up.”

And since everyone is patent-obsessed lately, Hodge adds that they “own 100% of the intellectual property rights.”

So that oughtta be enough fuel to feed into the mighty, mighty Thinkolator, no? Indeed … turns out that this little Massachusetts company is … IBC Advanced Alloys (IB in Canada, IAALF on the pink sheets)

And be careful, it is TEEENSY. The market cap is less than $50 million, and on a normal day it only trades a couple hundred thousand dollars worth of shares, so ANY interest causes the stock price to go all kerfluggly. That’s happened in the past whenever the stock has been teased, I thought the whole thing sounded a bit familiar so I looked it up and yes, the Alternative Energy Speculator folks also touted this pick back in February of 2010, and you can see the impact on the chart:

That more recent spike, in mid-May, could have been from Byron King, who has also touted this stock before for one of his newsletters, or it could have just been attention from the opening of their new manufacturing facility or something along those lines (they issue a lot of press releases). And you can see on the far right of the chart that this new promo campaign by Nick Hodge has already helped the price climb from the 16 cent neighborhood up to 22 cents. I can’t write about it to all of you without also having an impact on the price, even if I don’t tell you that I think it’s a buy or a sell (I don’t have an opinion on the stock, just to be clear — I’m just pointing you to the solution for Hodge’s teaser).

So I can just tell you to be careful, there’s very little way for me to know, especially given the very limited research I’ve done, whether the company should be worth 10 cents or 50 cents (or far more or far less) per share right now — it’s all about attention and new customers driving new potential revenue streams, and new investors getting excited about the stock.

You can check out the company’s promotional materials on their website here, including the latest investor presentation — and that’s probably all the optimism you need, they are at least lifting revenues (revenue increasing 50% year over year). It’s certainly possible that they’re at an inflection point where demand for their alloys or perhaps increased use of beryllium oxide as a nuclear fuel additive will drive them into profitability, but it’s far from guaranteed. For the pessimism I always like to double check the financials, and they have a fairly standard (for a development stage company) “going concern” section in their latest quarterly report:

“At March 31, 2011, the Company had not yet achieved profitable operations, had accumulated losses of $24,731 since inception and expects to incur further losses in the development of its business, all of which cast doubt about the Company’s ability to continue as a going concern. The Company’s ability to continue as a going concern is dependent upon its ability to generate profits from its operations to obtain financing to meet its obligations and repay its liabilities arising from normal business operations when they come due.”

That “accumulated losses” number is in thousands, I’m pretty sure, so it’s an accumulated loss of about $25 million — which means they shouldn’t have to worry about paying much corporate income tax anytime soon. They have done equity raisings pretty much every year going back many years now, with the latest one being eight million dollars just recently, so they ought to have enough cash to keep them going for a while — at the current pace they’re losing just under $3 million/year, though with the new facility and new initiatives they may be investing more.

And in case there was any doubt, yes, they did just open a 63,000 square foot manufacturing facility in suburban Boston, and they are doing deals with big high-tech manufacturing companies who they won’t name, and they are looking at all the typical customers for gee-whiz new alloys and technologies, including aerospace and defense. And they are going with vertical integration — they have exploration projects and mining projects in Brazil and the US, including a major historic beryllium mine, and they have a supply contract with the Kazakhstan nuclear authority Kazatomprom, which runs the Ulba metallurgical plant that supplies much of the world’s beryllium (along with other nuclear fuel).

And yes, there is a “Ray” — it sounds like they must be talking about Ray White, co-inventor of the Beralcast technology that I suppose must be their “break the laws of physics” stuff, and one of the named folks on the patent.

And beyond that, well, if you know whether this will really be a “billion-dollar energy cure,” I hope you’ll share with us with a comment below.


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21 Comments on "“Rogue MIT Scientists’ Billion-Dollar Energy Cure”"

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slosie
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slosie
August 15, 2011 3:34 pm

Have you looked at the Grid by The White Cap Report?

Terry Fleener
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Terry Fleener
August 15, 2011 4:14 pm

Berylosis is what has made National Jewish Hospital in tDenver the leading Lung Disease Hospital in the USA. It comes from inhaling Beryllium dust and is fatal. Many worker at the Rocky Flats Nuclear plant in Denver died from it……..

Myron Martin
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August 15, 2011 5:05 pm
This one has been around for a long time with promises, promises and more promises, so I can only hope that they are FINALLY approaching an inflection point where their business gains traction and they finally become profitable. Have been holding a small stake in this stock for a couple years waiting for that promised but so far elusive breakthrough. At this point it neither makes nor breaks me, I will give it another year and if I see reasonable progress that is sustained by actual company sales and revenue as opposed to speculative buying generated by promotors with slick… Read more »
private
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private
August 15, 2011 5:16 pm
The more advance magnetic energy generator technology to be announced very soon, which is much more advanced and super cheap compared to all other forms of energy production with more powerful military applications to make nuclear bombs obsolete makeing this berylium use high cost dangerous old reshuffle of this antiquated dangerous technology, that will ultimately revolutionize the third world to allow very cheap energy at an average cost worldwide of under $0.0075 per kilowatt hour compared to the cheapest current limited wind generated electricity. The strangle hold of dirty expensive energy of oil, gas, and coal is about to be… Read more »
Burnerjack
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Burnerjack
August 15, 2011 7:00 pm

Private, as magnetic energy generation is driven by a primary mover i.e diesel fuel in a diesel magnetic generator, for example, your teaser makes absolutely no sense. efficiency in electromagnetic energy generation has more to do with equipment size per Kilowatt than fuel utilization. Your claims are classic as they prey on public ignorance and keywords.

2 Private
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2 Private
August 16, 2011 1:45 am

I hear it works like a heat pump, pulling electricity from the atmosphere. Solid state, too. Long overdue. Read Atlas Shrugged.

Candu
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Candu
August 16, 2011 5:33 am
As a physician, I would say that berylliosis risk, with the possibility of unlimited liability (consider the cost of asbestosis lawsuits), is the killer issue. And the comments from a Candu scientist ought to be understood: the Canadian deuterium-uranium reactor is somewhat safer than the Westinghouse light-water reactor, but both may be supplanted by one or more of the improved nuclear technologies — assuming something better than nuclear doesn't come along, which it very well may. Harvesting energy, minerals, and water from rift zones underwater is the newest idea, and the logic of it is compelling: if anyone has an… Read more »
hmccalla
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hmccalla
August 16, 2011 4:17 pm
As an old engineer who spent time in the defense industry, I have difficulty seeing this as "new". I remember that we produced many applications for Be-copper alloys where strength and light weight were important. Also several parts for more commercial applications. The battery clips on the first LED watches were of this material, The springs and battery clips on early calculators were from this material. Later, the nice metallic cases on some digital watches were Be-nickel(the ones with the nice bronze tone). A large number of things that went "boom in the night" had Be components. The various parts… Read more »
jerry
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jerry
August 21, 2011 12:36 pm

Should take another look at my set of my Berylium tools, they were nonsparking and made for use in explosive envioronments

Peter
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Peter
August 24, 2011 9:25 pm

I have use components (radio frequency power electronics) with isolating parts made of beryllium-oxide for decades, nothing new here….

Durwood M. Dugger
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October 19, 2011 10:55 am
I can’t speak to all the light wt. or electrical applications of beryllium, however I think it’s use in the uranium based nuclear reactor industry is probably way overstated. The advent of the thorium reactor and it’s recent commercialization by India and China (not the US where the technology was first developed in the 60s, but shunned by the MIC – because it wanted weapons grade plutonium – by product of uranium reactors) makes beryllium use almost superfluous in that meltdowns are totally avoided with the thorium reactor to start with. Thorium being 400 times more abundant than uranium, having… Read more »
Todd Monka
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Todd Monka
July 13, 2012 3:34 pm

Perpetual motion devices:
Atom, Earth, Sun, the galaxy, the universe, clusters of galaxies…
Nikola Tesla said one day man would “harness the wheelwork of nature” .
Just because it isn’t common knowledge yet, doesn’t mean it can’t be done.

longshot
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July 24, 2012 1:52 am
Got a new pump on this one July 23,2012. They had drill samples in a warehouse, landlord locked them out> (unpaid rent?) Their mgt report May,2012: Beryllium Oxide Nuke Fuels. VP of Nuke fuels (part time) is only employee on this. No employees engaged in research. Brazilian mining properties written off. Mine/properties in Utah-Colo: Either formerly operating mines, or property adjacent to existing Materion Mine. One person employed to manage exploration. Drilling samples were stored in warehouse awaiting shipment to labs for analysis. Landlord lockem them out, even took off 4 pct of their samples. Now they must spend 60K… Read more »
Ventureshadow
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Ventureshadow
August 15, 2011 4:50 pm

First, beryllium is very poisonous, but of course you have to absorb it first. Any machining or sanding liberates the dust, and there you go. Second, it takes a lot of faith to believe that this company can compete directly with profitable and large Materion Corp and other beryllium companies. They are far from profitability. Third, the primary application is what–nuclear energy? (TILT !!). High tech materials? Well, there certainly are lots of them these days. Looks like three strikes to me and they're outta my ball game.

DrJay
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DrJay
August 15, 2011 11:52 pm

so tell the "shoe" and let him cover it–let's see it . If it's great then we "shoe" fans should be informed early. "Inquiring minds want to know"
Dr.Jay

Brian H
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Brian H
August 27, 2011 2:38 am

Horse pucky. 'Magnetic energy generator' is a nonsense phrase. Something must initiate the energy, and there are two possibilities: chemical and nuclear. Magnetism can carry or modulate that energy, but it is not a "generator'.

Private
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Private
August 16, 2011 12:34 am
I work in nuclear making fuel for CANDU reactors in Canada. Fuel is highly regulated and any changes happen very, very slowly, if at all. By the time they allow BeO in nuclear fuel, we will all be dead and gone. Thorium has had some in-reactor testing and it still isn't even running consistently in any reactor in the world that is publicized as doing so. That leaves beryllium significantly behind. Invest in them if you want because they may be selling beryllium. Stay away if you think it's for fuel. Phelps-Dodge in US is a bigger producer of beryllium… Read more »
CMM
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CMM
August 17, 2011 11:05 am

Excellent! I have not seen a good "over-unity" device in a while…nothing like a good perpetual motion scam/tease to get the blood flowing. Maybe we can all collectively revisit the Stoern (Irish perpetual motion machine scam) story for a good laugh.

Brian H
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Brian H
August 27, 2011 2:42 am

"Pulling energy" takes work. Then you get back what you put in. Background magnetic and electric currents around the Earth ("from the air") are very diffuse. Like sunshine. Takes lots and lots of hardware and real estate to tap them.

Gregg
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Gregg
August 18, 2011 6:37 pm

Beryllium has been used in thermonuclear weapons since WWII as neutron reflectors….boom indeed.

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