the inconvenient truth

Long time follower, first time contributor.


(Apologies in advance for the length)
My husband bought MSC shares about 2 years ago based on the green cement story and weve ridden the roller coaster since.

The bumpy ride and shrinking nest egg has lead to many a heated household debate over the bona fides of the MSC story, lighting the flame for some serious research. The best part of 6 months down the track, we find ourselves still unraveling a web more intricate than Brooks love conquests in The Bold and the Beautiful.

AGAINST HUBBIES WISHES, here are some of my observations/discoveries:

* "First Kaocem order" 08/07/09. An alleged $1.6mil order for NSW construction projects for Aug 09. However, no signs of any sales figures. And I'm told Kaocem is mortar, not cement (there is a difference).

* "ACC ECOPANELS Commencement of Operations" 05/08/09. They bought a company name, but nothing else. No manufacturing capabilities, no production, no sales.

* "ACC ENTERS SOIL REMEDIATION" 08/09/09. Got Ziltek to sign a supply agreement for Kaocem, the mortar product. Ziltek is a waste treatment service. Dont know what they would be doing with mortar. This doesnt appear to have gone anywhere to date.

* "New Low Carbon Product Application - House Bricks" 18/08/09. Believe a one-man-band in a shed somewhere in Victoria has carried out a test. Also got a startup local brick company to run a test. Nothing further has happened. But makes for a great announcement.

* "New Green Cement Technology Agreement" 21/09/09. This one is interesting. It appears Descrete are the owners of the technology and have licensed MSC for specific areas in Asia. Victor claims to any broker willing to listen, the technology is MSCs and they have global rights. This does not appear to be the case. Does anyone out there have specific details on this agreement?

* "New Cement Customer US$10million order" 28/09/09. WOW big order. Have spoken with one very disgruntled paving contractor who claims this has fallen through. Victor will not be on his Christmas Card list for the next millennium. Im surprised nobody has asked Victor about this one, US$10mil is a significant deal announcement.

* "Low Carbon Cement Products Target Customer Update" 27/10/09. This one is probably the best. It is true that Descretes product has had a good deal of success in the block market. I have visited Baines personally and chatted with several people (right through to a truck driver) and they all spoke very highly about the technology. All the claims made about the blocks appear to be true. However Baines is Descretes customer. Baines has nothing to do with MSC. (Descrete and Victor did turn up on site recently with a Chinese contingent, however more on this later.)

The rest of this announcement seems to be littered with deception and half truths. Stories of JVs and these extraordinary sales figures that never materialise. They signed a non binding Heads of Agreement for a JV with CRH in the US a couple of years ago however no one is able to provide details. Someone at Baines told me Descrete sent a container of their product to the US before Christmas. Id like to know what the Descrete/MSC relationship is with CRH as I understand the New Green Cement Technology Agreement is only for selected Asian regions. Does anyone know where CRH fit in?

* "China Markets Agreement" 29/01/10. The plot thickens here. When I made my visit to Baines recently, they mentioned a contingent of Chinese went through their plant early in the New Year accompanied by Descrete and MSC representatives. I assume it was DDW. He said Descrete and MSC were heading over to China with them.
And then this announcement! No mention of Descrete or their technology.

I called Descrete and spoke with a Director, asked about DDW and how this fits in with their MSC deal announced on the 21/09/09 (detailed in the Alto Capital Research report 26/10/09). Received a blunt "no comment" and was referred to Victor at MSC to answer questions. Victor did not returned my calls.

Then last week word from the Cairns office surfaced about Descretes secret powder going missing and talk of legal action against MSC!

What is going on? Does anyone know what happened to the Descrete deal? Stevie? Descrete was supposed to receive consideration of $1million MSC shares as part of the deal. Are they currently shareholders?

No matter which way you look at it half truths and no truths litter the MSC story. Victor makes weak, non binding Heads of Agreement and JV announcements without the substance to back it up. And the only place where he can point to the success of the green cement story (Baines), MSC has no involvement. OK, fine to point to Baines as the product clearly works but exactly what rights do MSC have over this technology? Baines are using Descrete's cement, not Kaocem. Kaocem is a mortar! What is this the technology being used at DDW?

How can a public company so blatantly misrepresent their affairs and still be in business? Time for ASIC and the MSC Directors to face up to the inconvenient truth I say!

Finally as a footnote, throughout the journey I have discovered many shareholders know the inconvenient truth about MSC, however they sit in silence watching as Victor grooms and seduces more innocent investors. They know only too well of their fate, but choose to turn a blind eye as each further seduction offers them one more day of forlorn hope. Victor must be laughing so hard hes wetting his pants.

Glad to finally get that off my chest. Apologies again for the length.