Sunday, March 1, 2009

What A WEEK Ahead!

We are certainly headed for an interesting week in GERS land. The extension for the financing deal is set for Monday. Prior experience has shown that we can expect information as early as Monday: Just before lunch or more likely after the close. Monday would suggest - but not guarantee - good news.

We could just as easily hear something by Wednesday - or even as late as Friday. This could be either good or bad - depending on the outcome of any final negotiations.

We should hear one of three things:
1. CBE/GE Deal closed.
2. CBE/GE Deal did not close and here is plan "B".
3. CBE/GE Deal did not close.

Do you think that the GE deal will close? Look in your brokerage account over the last 30 days. I suspect if you see mostly GERS buys - you see a decent chance we will close. If you have sold -then you think it not closing. Holds suggest you are looking for a plan "B". You didn't know the SkunK knew what you were thinking - did you?

SkunK thoughts?
The price will not stay where it is. It may move up or down in big chunks dependent on the news next week. The overall market is hitting new lows. Comparisons to the 1930's are everywhere. The Biodiesel industry is AT LEAST 75% idle. NO ONE that I can find is making money making biodiesel. If GERS can somehow survive this period with little or no cash flow - and emerge on the other side - with its operation inact or even larger - they will have a tremendous future. I think they need a cash infusion of some kind to make it.
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Last Friday was the lowest volume day of the month. Here is the SkunK's rough estimate for the OS numbers as of today. We had just over 50M shares traded in February, not counting the after market trades. We should get the total on Monday. I took the 50.3M shares traded and added 8% to (more than) account for after market trades, then multiplied by 70% to get my 38M dilution estimate for the month. Larger version on the link below:

http://docs.google.com/Doc?id=dgzzx2hv_45gx7bnqdf

Conspiracy Theories - The X-SkunK files

What is GERS land without a fresh conspiracy theory? The SkunK has known for a while now that there has been a "concerted campaign" to get my blog off the net. The campaign intensified when I released the blog "numbers" at the start of the year. Apparently they were big enough to require action. Without going into detail about the many facets of this campaign, the most recent and obvious to the reader is at least one major message board was convinced to delete messages with this blog's link. Which one? Post my link on each and find out. Dang, I knew I should have taken up horseshoes! LOL - Hope to share more later. . . . .

Good Luck to all Investors

SkunK

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