From Sparky: Monday 03/08/04 10:55pm cstGETC Press Release - A Dissection By Sparky
Sparky's Dissection
Before this morning's opening, most of the Street had ample opportunity to read and analyze GETC's 7:00 am press release. For those who haven't yet read today's GETC release, it is reproduced elsewhere on this site and can be found at most news icons.
Now that the day's over, Sparky offers the following well-thought-out analysis.
Beginning with the release itself, the points listed below were found by most to be the most noteworthy:
> California, by far the state having the most cars driven the most miles, on January 1st of this year, banned the use of Methyl Tertiary Butyl Ether (MBTE) for use as a fuel additive.
> GETC and Telco Energy are used synonymously in the release.
> Telco Energy owns 50% of MACH 3 Enterprises, LLC.
> MACH 3 Enterprises has developed & registered with the EPA a MBTE alternative called EcoFuel Saver.
Sparky arrived at the above summary of points only after talking with many shareholders throughout the day who had reviewed the PR and were asked for their take. And the above points were essentially all that was garnered from today's release.
That said, Sparky now offers his take: Telco Energy has signed, or is about to sign, a huge contract with some entity, or entities, that involves significant amounts of EcoFuel Saver.
To see how Sparky arrived at this bold conclusion, let's go back and briefly review the first PR that mentioned Telco Energy. It was dated March 1st and it described Telco Energy as a company having significant assets' and as a company that operates an energy business in the U.S., is developing business operations in Russia and China, and owns 1,400 miles of gas pipeline.
Kindly note that the March 1st press release did not so much as even mention MACH 3 Enterprises, or i's EPA registered EcoFuel Saver additive. Sparky calls little observations like this one a DOT, as in the kind you eventually connect.
The next release, dated March 3rd, tells us how about-to-be-joined GETC-Telco Energy plans to exercise its right to acquire 51% of Volgageoresource. What Sparky sees as noteworthy in this news release is that GETC is announcing this after the Telco Letter Of Intent press release because it happened after March 1st. From this we can now deduce that Telco already owned its interest in MACH 3 Enterprises before March 1st, otherwise the acquisition by Telco would have prompted a press release similar to the Volgageoresource one. Sparky also believes that this little observation qualifies as a DOT.
Then on March 5th, we had another press release, this one an update to shareholders. A particular phrase in that release also caught Sparky's attention. Specifically, this PR again described Telco Energy; but this time care was taken to add its motto, "From the Wellhead to the Gas Pump." Since additives would be added during this wellhead to pump journey, Sparky has to also label this little observation a DOT.
Now let's just connect these DOTs!
We have a company named GETC that on March 1st signs a Letter Of Intent and describes the operations of Telco Energy without mentioning so much as a word about a 50% owned subsidiary of Telco called MARC 3 Enterprises that happens to have developed EcoFuel Saver, an EPA registered substitute for the once-popular but now banned in CA and about-to-be-banned-elswhere fuel additive MTBE.
Then not even a week later, after we've been reminded that Telco's motto is "From the Wellhead to the Gas Pump," the development and registration of EcoFuel Saver by a company subsidiary is suddenly considered news worthy.
Let's not forget that the 50% of MACH 3 Enterprises owned by Telco was not purchased after the March 1st Letter Of Intent between GETC & Telco Energy. Nor was MACH 3 Enterprise's EcoFuel additive Saver developed and/or registered with the EPA after the March 1st Letter Of Intent.
The significance of connecting all these observations (DOTs) is that it prompts Sparky to ask this question: Why all the press about MACH 3 Enterprise's EcoFuel Saver now, versus March 1st?
Sparky thinks the reason this 50% owned subsidiary is now suddenly news worthy is because sometime between March 1st and today a deal was signed, or at the very least was finalized!
And this is why Sparky thinks more EcoFuel Saver news will be forthcoming very shortly and that it will involve a sizable EcoFuel saver contract.
Remember too that in today's release it was mentioned that Ecofuel Saver not only increases power but also increases mileage as well by an average of 20%. Now, because polluting is a function of miles driven, how can a 20% increase in mileage not translate into a 20% reduction in pollution?
For this reason, Sparky thinks this about-to-be-announced deal may even involve a state that has not yet banned MTBE, but is about to.
The above interpretation of today's release also explains why Sparky hasn't sold a single GETC share and why he thinks they should be accumulated, not sold.
Sincerely,
Sparky