ceramic fuel cells in distribution partnership, page-16

An inspiring post lockitt… and in stark contrast to your state of mind only a few short weeks ago when you were experiencing bitter disappointment. Post: 9293233

As a holder of CFU since 2007 and having never traded a share I consider myself a patient man but given the fact that the company is pretty much running on the bare bones of it's arse financially I find myself taking a less optimistic view of both our current situation and our future. There is a very real chance that we may not even be here in five years to experience those decent rewards that you speak of. Adding new partners to our already extensive list will not change that fact unless they start placing significant orders and taking delivery of them in a timely fashion resulting in cashflow and eventually profit.

As IndiJo rightfully points out, ‘they can’t survive on the SH tit forever’.

Add up the customer base of our partners pre-Novogaz SA announcement – the utilities, the stadtwerke, the distributors - in Germany, the Netherlands and the UK. The figure you arrive at will easily be tens of millions. For a company in its ‘infancy’ this is more than enough customer base to begin with especially since our manufacturing capacity is so low and will take considerable time and effort to build up. If revenue was up-front when orders were placed maybe it would be easier as we would have cashflow to expand manufacturing capabilities faster.

I voted no last night to all resolutions to be presented at the EGM next month. The explanatory notes also were lacking in any meaningful detail as far as I’m concerned, particularly in regard to the security for the loan notes. No mention of IP as security now, just ‘assets’.

The directors expect that, with the addition of these funds, CFU will have sufficient working capital to meet its needs through to the end of calendar year 2013. What happens then? The $5 million tax rebate should assist if obtained. In regard to the loan notes, the EGM explanatory notes indicate ‘entry into the general security deed may, in the future, either limit the ability of the Company to secure loan funding from a third party debt provider, or increase the cost of such funding'. Does that mean that the next time we need to raise working capital we will have a rights issue? If so, then why not have it now instead of convertible loan notes?

The secret to having lots of sales is not having lots of people selling and pushing our product. It’s having paying customers. CFU have plenty of exposure where is counts. We have been doing trade fairs and expos for years. We’ve had news coverage, magazine coverage, TV coverage, internet coverage, excellence awards. At the end of the day we have enough potential customer base to keep us occupied for quite awhile. More partners are not required at this point…. It’s all about sales, as opposed to orders, and cashflow now.

Just the thoughts of a long term hopeful, but realistic, holder...