Along with the countless aficionados of Travis, who are in awe of his uncanny ability to uncover the name and validity of the next highly touted ‘can’t miss breakthrough multi-banger,’ I sit in full realization that making a real score in some penny stock or other, is a tall and seldom realized dream. It all comes down to the willingness to take a shot, combined with a prayer for divine intervention, or put another way, will this finally be my lucky day.
You may recall that back in May of 2014, I wrote an article about a
penny stock called Genoil, and its patented GHU technology, which was capable of turning high-sulfur and heavy crude/ bunker oil into an effective and non-polluting light sweet oil for shipping, transportation and other uses at an economical and highly competitive price (I think the company said it was about $4.00/bbl). The downside damper on this technology was the cost of implementation and the factor that Genoil did not, of itself, possess the resources necessary to put a full-scale plant into operation. It simply wasn’t enough to say that Technip Stone & Webster, a major player in the truly Big Leagues, was willing to warrant the efficacy of the process. It all came down to a very simplistic question. Where to get the peanuts to feed this elephant.
Despite what I thought was an extremely intriguing situation selling at a very low price ($0.07), fellow Gumshoers were dubious and tread very lightly. No one beat a path to Genoil’s door. In fact, I’d be surprised if more than a few of you readers even remember the tenor of my presentation. The numbers were simply too big to digest. Admittedly, the market for the process was large enough to generate excitement, but this was tempered by the fact that a full-scale plant could cost well into the hundreds of millions. And where would a small OTC company find this type of financing. Gradually, the stock sank to $.03.
Then, a couple of days ago, on February 2nd, to my great surprise, Genoil announced it had signed a $700 million contract with Hebei Zhongjie Petrochemical for the construction and operation of a heavy oil refinery based on the company’s GHU technology, to be located in the Zhongjie Industrial Park in Heibei Province, China. The next day, almost in answer to my unspoken questions as to how this would be financed, Genoil announced it had entered into an agreement with MCP Munich Capital Partners under which MCP will provide financial structuring and advisory services to Genoil’s oil upgrading projects and help arrange equity and debt financing for future GHU facilities, as well as introduce Genoil to their extensive base of institutional and private investors worldwide.
It appears the drop in oil prices will have minimal affect on Genoil’s marketing potential, as new international regulations coming into effect pertain primarily to mandating reductions in sulfur, metals and viscosity emissions. Obviously, cost savings will also be a factor, but the main emphasis is being placed on a reduction in pollution, which is the hallmark of Genoil’s GHU technology.
After these announcements, I sat scratching my head, as the stock price dropped from $.05 to $.04. My puzzled reaction was further
exasperated when I read that Genoil had also been invited to speak at the 2015 Euro Asia Economic Forum, which will be held in Dalian, China.
There must be some reason for investor indifference to this news, possibly relating to past disappointments, but it seems to me that a shot at these prices is something to seriously consider, especially since Genoil currently has a market cap of only $17,000,000. I foam slightly at the mouth at the thought of how much this might be worth on a buy-out, once this first plant comes on stream. Better yet, how many plants would be needed world-wide to assure containment of the current growth in the pollution of our oceans.
I, for one, intend to start with a small position, which will be added to, if and when the stock progresses higher. I keep reminding myself that Columbus had his own new venture funding problems before he was finally able to set sail.
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