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I've followed for about 7 years, and have been buying and holding for a rather excruciating past 2 years. The company is First American Scientific Corporation on the Over-the-Counter: Bulletin Board (Bid/Ask is .015 X .018). FASC owns the right to a patented grinder-dryer called the KDS Micronex.
A few reasons I like the stock as a medium-to-long term buy & hold:
Only 200 million shares are authorized with 196,893,955 outstanding. No convertibles. Shares issued have only gone from 90 million to the present amount of 196,893,955 over the 8 long years since present management took over. (They've never done a reverse split!) Total debt (all long-term) is less than 1 million, it's all unsecured, and it's all owed to it's two managers (CEO Brian Nichols and Chairman of the Board Cal Kantonen) who've lent the company money over their years at the helm. I've spoken to Brian twice and Cal once, and I'm happy to be able to tell you I have a good feeling about them as people. For what it's worth and in my opinion they certainly are not trying to "pump" the stock and are in this for the long haul. And although they are in my opinion "penny stock saints" for the lack of dilution over the course of their tenure, the results in terms of sales and profits have been, to date, underwhelming.
For a comprehensive compilation of DD (due diligence) I'd advise anyone to read the FASC message board "iBox" at Investor's Hub. http://investorshub.a dvfn.com/boards/board.asp?board_id=566 The information has been compiled in a thorough and intelligent manner. Information found there includes a background on KDS sales, the government and quasi-governmental funded and/or conducted research and development, existing international joint ventures and joint venture agreements in principle. There you will see applications for the KDS Micronex go well beyond alternative energy. (However, the CEO Brian Nichols did tell me in a telephone conversation about 4-5 months back to "focus on energy". So, I would not be surprised if that is where management is focusing the bulk of it's attention these days.)
A few applications that particularly pique my interest:
Grinding biosolids from waste water treatment plants into a certified class A fertilizer (free of is pathogens). I know, from speaking with the CEO, the company would like to see such a product be used in energy production. (Perhaps pelletized and then co-fired with wood waste...there is lots of pine beetle killed timber in North America these days.) (There's something about producing energy from shìt that I just love!)
Grinding biomass towards pelletization, a combustible powder, or as a pre-treatment for biofuel production Xcel Energy (XEL:NYSE) just gave a customer of theirs, Minnesota Valley Alfalfa Producers, ( http://www.granitefallsnews.com/articles/2007/11/04/news/news01.prt ) $1 million to study the KDS Micronex for the above stated reasons and to make improvements to the existing KDS design towards this application. "Proposal: Researching the Use of KDS (Kinetic Disintegration System) to Process Various Feedstocks for Biomass Pelletization Use" http://192.234.136.46/docs/07-0675RDF3rdcyclefunding120607.pdf
Another possible biomass application is sugarcane bagasse (leftovers) in South America. FASC signed a joint venture agreement with a group down in Brazil almost 2 years ago, might hear something from that soon. http://www.fasc.net/newsrelease/06-04-18.htmPosts: 393 | Registered: Jul 2003
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posted
MMs walked the PPS down on no volume. (No surprise.)
The next time I post, it will be to post a PR. I am not saying it is coming soon, although I hope it is. Good luck to any and all who decide to pull the trigger on this one. I predict big things.
Posts: 393 | Registered: Jul 2003
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