The SkunK already noted at the end of his last blog that we had an, "Inventory Blowout Sale" going on over at ICM. Curiously, if you put the word "centrifuges" from the drop down in the search you come up with three tricanter centrifuges for sale. Hey! Isn't the tricanter the centerpiece of the Tricanter Extraction System? Why sell them now? - Just when you need an expanding business to pass out those indemnifications?"ICM's oil extraction technology, which utilizes the Tricanter® centrifuge, . . ."
Update: For you early birds who checked this out last night, you may have noticed the two entries for centrifuges. One entry was for "1" and the other had "2" for a total of three. If you check it out now we are down to a total of two! Looks like a SkunK reader may be the proud owner of a new "tricanter centrifuge!" Let me know when you spin 'er up - we got some cloudy spring rhubarb wine with huge potential and I don't want to wait six months for it to settle out.
Update: For you early birds who checked this out last night, you may have noticed the two entries for centrifuges. One entry was for "1" and the other had "2" for a total of three. If you check it out now we are down to a total of two! Looks like a SkunK reader may be the proud owner of a new "tricanter centrifuge!" Let me know when you spin 'er up - we got some cloudy spring rhubarb wine with huge potential and I don't want to wait six months for it to settle out.
SkunK
Posts
12 comments:
Interesting observation, Mr. Skunk.
to cover the indemnification would like say 10 billion times 0.0002-0.0003 be sufficient?
Your right - it would be a lot cheaper to simply buy out GreenShift for the 2-3 Million Dollar Market Cap. Except for the founders preferred shares that are always worth over 60% of the company. They were designed by the main creditor to protect their collateral, but also serve as an very effective poison pill in any hostile takeover attempt. I expect those prefereds to dissappear after this litigation is settled and Yagi is paid back. Then we can have a more reasonable OS.
I think that no insurance or litigation policy would cover knowing violation of patents on the off chance that the patents could be declared invalid. The premiums would be close to the limited coverage. I figure this has to be self-insured - or more likely a bluff. Although the Ethanol industry is coming back - it is not throwing up plants left and right and keeping all the suppliers/builders busy - so that explains some of the blowout sale. It does not explain why they held the parts through the recession and are selling them now - unless they are already short on cash.
The centrifuges are very hard to explain - unless one assumes ICM is leaving the Corn oil extraction business. GreenShift - as strapped as they are - holds over a half million in centrifuges - they are hard to get - big lead times - ICM SEEMS to be leaving the non-patented Coes business.
ICM is not likely to have 10's of million$$ on hand to self-insure. Likely to leave the Ethanol Plants with worthless paper/promise as they head for bk protection if they lose this one. This bluff is bad for the industry. Ethanol Plant infringers need to come clean now before they get too deep in triple royalties. You do not see Westphelia promising anything and they are a giant world wide supply company who might be a little more believable. ICM must be desperate to make a go for broke play.
ICM is a private Company so the Ethanol Plants cannot see ICM's books. The Ethanol Plant management likely will be forced to walk by their stakeholders if they lose this, ICM folds and they end up paying huge royalties. So the Ethanol Plant Management is playing a win or fold game too. Its the Ethanol Plant Stakeholders who will be paying the tab when this thing is over. Can you say "Special Assessment??"
I agree. Very bad for the industry and for the progress of new technology in this country, in general.
If inventors could operate in a completely pirate free environment, the new technologies wouldn't be so expensive.
It's like Health Insurance. The people who have health insurance end up paying for the health care costs of those who do not (the 'pirates' of the health care system), via higher insurance rates.
Regarding the mysterious ICM centrifuges for sale, there are several possible explanations ...
1. They determined that a particular model or brand of centrifuge doesn't work as well and are therefore selling off their inventory of that model/brand.
2. They are nearing a settlement with GERS, and have decided to use cash from centrifuge sales to buy GERS stock prior to announcing a settlement.
3. Other alleged COES pirates want to install the centrifuges themselves. IE: a black market in COES equipment is developing within the industry ...
4. The uncertainty surrounding the patent litigation has caused the market for COES installs to "freeze". Everyone is waiting for the outcome of the patent litigation, and noone is buying from anyone. ICM doesn't want to hold inventory for a lengthy period of time while it depreciates. So, they are selling the centrifuges.
5. ICM simply needs cash to pay its legal bills.
[GreenShift may well be getting their legal on a 100% contingency basis.]
My guess, for what its worth, is that #4 & #5 are the most likely explanation(s).
It may turn out that some of the customers are very influential in deciding this patent case.
While juries and judges may not have the technical expertise to determine infringement or not, some of the customers have that kind of expertise.
If, for example, Valero suddenly decides to buy licenses from GreenShift, that is a major endorsement of the validity of the GreenShift patents.
ICM seems to be getting the plants owned by small groups of investors, like Cardinal.
But, who will get the big fish in the pond, like Valero, who are more sophisticated.
Unlike the little, cash strapped groups like Cardinal Ethanol, who actually buy into the indemnity agreements, a company like Valero probably has a better understanding of these issues.
For example, Valero will understand:
1. Indemnity agreements probably won't hold water in court.
2. ICM probably cannot afford to indemnify the entire industry anways, even if the agreements do hold up.
3. Valero probably has a better ability to evaluate the two patents themselves and will see through the lame arguments of ICM.
4. Valero also probably better understands how high the patent infringement damages can actually get.
PS: The photo included with the Lambertus post is a much more interesting observation than the inventory blowout observation! (no offense, Mr. Skunk!)
wake up, skunk...
http://www.marketwatch.com/story/marquis-energy-licenses-greenshifts-patented-corn-oil-extraction-technology-2010-04-27?reflink=MW_news_stmp
Post a Comment