GreenShift Corporation (OTC: GERSD) touched the day high of $0.0012 and low of $0.0009. It jumped up by 11.11% to close at $0.001 with overall traded volume of 45.65 million shares in the last trading session. GreenShift Corporation (GreenShift) develops and commercializes clean technologies designed to integrate into and leverage established production and distribution infrastructure to address the environmental needs of its clients by decreasing raw material needs, facilitating co-product reuse, and reducing waste and emissions.
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SkunK
Thursday, August 19, 2010
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By trading debt for a 20% interest in Y/A Corn, the royalty they receive for corn oil sales will be the same 20% with all of their customers. Y/A is going to finish building these 1/2 way complete systems that GERS just traded. They were extracting about 2.7 million gallons a year (MGY) and now it will be 5.4 MGY. So really GERS will be getting 40% of what they're getting now.(20% doubled for free)
Add in the other customers and their nameplate capacity...
Marquis 110 MGY
Global 110 MGY
United 55 MGY
Bluffton 110 MGY
Central City 100 MGY
Obion 110 MGY
Ord 50 MGY
Shenandoah 55 MGY
Superior 55 MGY
Center Ethanol 55 MGY
These other customers will add roughly 18.5 MGY of corn oil per year. That brings us to a total of at least 25.5 MGY of corn oil extracted by all of our customers. It's about $2 a gallon so that's $48 million a year. Greenshift gets 20% just on royaltys. They also get millions in revenue from equipment sales and fees for services provided.
Green Plains is looking to buy more ethanol plants(more COES).
Several ethanol producers have hinted at settlements.
Each ethanol plant(110 MGY) generates over $1 million per year in royaltys for Greenshift. That's $.0005 revenue per share at 2 billion shares. If ten more ethanol plants sign or settle with the one and only patent holder Greenshift, that's revenue of $.005 per share.
I believe GERS is now going to be profitable due to their new customer GPRE. Unlike their old business model no more debt is added, just paid off. Any new licenses should be pure profit.
With a few more licenses, and earning a profit of say $2M per quarter and with 2B shares out, earnings could be $.001 per share/quarter.
$.004 per year with a conservative-for-the- growth rate multiple of 10X and we have a share price of $.04.
I think that would be possible with 8 more plants under license.
Revenues/earnings/price-per-share could double from there if corn oil returns to the $4.59 it hit in '08.
We're sueing 16 plants right now, and there's 40 or so breaking the law.
August 12, 2010 8:07 AM
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