Hi guys,
Some good discussion going with a thanks to @Mr Heman, @ThePiedPiper and @greenhawk. This has been a discussion in a couple of forums today. What could Plan B BE?????
We all know speculation can take you all over the place. So this post of mine is just adding another point of view for the round table discussion and is IMO.
After considering what has been mentioned I also followed that line for a while, even agreeing with it and posting my own findings. But I decided to go back and re-watch the Videos of Siegfried Konig and David Henson two more times.
RE the alternative use of fly-ash.
Siegfried in his opening remarks said that this is WHERE THEY HAD COME FROM. It was at the beginning of his presentation and not in the middle. The way he spoke didn't leave me with a feeling that this was where LWP was GOING BACK TO or maybe DIVERTING OFF TO.
David Henson was very positive about LWP being able to custom-make any proppant size required for any sized job and any sized well whether that be 4K, 5K, 7K, 10K or 15K. Each of those strength ratings were mentioned during his talk.
So I asked myself again, why would LWP now divert from their Vision and Goal which is:
LWP's Flyash Proppants will become the dominant Ceramic Proppant and the Standard for the Industry.
On all their Media releases it states: Next-Generation Fly-Ash Proppants.
I was actually concerned if we had a diversion from the path being that this stock is very Retail Investor Heavy could have deleterious affects on the share price. If we compare Retailers to Insiders, Private Companies and Institutionals you will understand my point and why this stock seems so sentiment driven IMO.
Source 1: S&PCapital Source 2: LWP Administration.
OWNERSHIP as at 29/04/2016
General Public: 2,631,363,874 shares
Individual Insiders: 773,204,354 shares
Private Companies: 388,906,442 shares
Institutions: 124,542,022 shares
So keeping this in mind I wondered how would Investors react? How would I react?
I reminded myself that these proppants were designed to be sold into a market where the POO could be low or high. They already had factored that into their equations. Every where they go the low POO is a benefit for the sale of our proppant technology. So why change tack now with another fly-ash product under the guise of PLAN B??
The presentations by both guys also discussed, with great confidence, the alternative uses of the technology. They said that they were a Technology licensing company not a manufacturer so that drew me back to home as well.
In the end Siegfried, with some emotion relayed to the room that his heart and his holdings were heavily sunk into this company and its future.
When he mentioned Plan B he used the words never never fail.
So....my first thoughts were MONEY BACKING. Not a CR raise, for a future fund raise. Even though, I suppose this could happen at some stage maybe:
He spoke in Present Continuous Tense. It was already happening and decisions were made.
This is what he said again:
ZIGGY: "We are putting in a Plan B so that we can NEVER NEVER FAIL and that no matter how long it takes for the Oil and Gas Markets to improve we can utilize our technology for the good of LWP and its shareholders and I AM FOCUSED ON THAT because I am the biggest Shareholder."
From what I have been reading and after re-listening to both these guys and seeing the intense activity in LWP's marketing this year I am more likely thinking Plan B IMO could relate to:
A. Big investor capital to guarantee the companies future.
B. A larger company joining forces with LWP to provide both dollar and logistics support to promote the technology
C. The re-tooling of existing proppant manufacturing facilities with their equipment and technology. Ziggy did say that it would only take a very small change in tooling and 2 extra silos. This could mean China or the US. Australia could also be in the mix. The fee for the licensing, as mentioned by David Henson, was 3.5 to 5 million for the License and 10% royalties. There could be a few deals on the go for this.
So guys that is where I am sitting at for my Plan B bet.
GLTAH & like me DYOR.
