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Post by Thomas on Jun 13, 2014 8:20:10 GMT
Brutus, I almost smiled if the truth weren't that sad. Just walked by the Frankfurt office. Lutz not there. Third week already. How about the Japanese office? Is it still open?
AVL developing the engine? Dream on...
Paul, besides the valuation which you seem to be incapable to conduct do you think that the SEC topic will allow Scuderi to go public? What do your friends & colleagues from Goldman, JPM or Citi tell you? Or your hedge fund buddies from Tiger Asset, GLG or Och-Ziff? Aren't you worried that project financing teams would refrain from giving this management millions to finance PPAs? Tell us, how this project finance would work... for an poorly developed and untested technology?
Fact is: The chances for the Scuderis to get any institutional money in is ZERO.
Thomas
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Post by Hide and seeker on Jun 13, 2014 11:03:54 GMT
Gutless isn't a crime, but theft is
I would rather be gutless
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Post by Paul on Jun 13, 2014 13:25:09 GMT
Brutus,
I'm an investor, not the cheif financial officer of the company, stop asking ridiculous questions.
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Post by Paul on Jun 13, 2014 17:34:27 GMT
Thomas,
I believe they can obtain financing, a long term contract in the form of a (power purcasing agreement) which the enduser agrees to purchase electricity for the next ten years is a tangible asset. Since the contract itself can be set up in a special purpose entity the finance companies will be locked in directly to the revenue stream. As far as the financing of an unproven technology the SG intends on getting these endusers off the grid using conventional technology, running the generators 24 hours a day, and selling the unused power back to grid. They make the margins on the sale of the equipment, they make smaller profit on the sale of the electricity, however it still allows them to finance the fabrication of the Scuderi engine with storage capabilities. One year later they swap out the conventional generators with the Scuderi engine and their return profit margins increase nicely.
Hide and seeker,
You keep hiding under your rock it appears that's where you belong.
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Post by Thomas on Jun 14, 2014 12:40:51 GMT
Paul,
thanks for your comment. I disagree with you about the financing of this structure. Scuderi Group is known in the Frankfurt financial community for over-promising and under-delivering. Financing is trusting. The current management completely lost it, there is no international bank who would back the deal. If they told you something else, it would be a lie.
Also the business economics of the deal are not making sense. Up until last year they wanted to license the technology to OEMs. Now they would use conventional engines to produce power and later convert it to split-cycle engines. Many reasons of which every single one alone would break the deal for any bank on the planet:
a) Margin of PPAs: Using a conventional engine would not give them enough margin in the production of energy to fund any kind of R&D program. It would likely only allow Scuderi Group to survive a little bit longer.
b) Scuderi Group / the new legal entity would have to still put up a significant equity portion into this. Where should this money come from? So far Scuderi Group seems to have raised only a fraction of what they said they would.
c) Scuderi management has misused investor funds (that should have gone into the development of the engine) and not into their pocket. This in conjunction with typically off shored SPV structures and lack of transparency would make every banker doubt if it would be an at arms length transaction.
d) Changing the conventional engine into a Scuderi engine is not doable. Especially not given the minimal positive cash flow a PPA would produce.
e) Scuderi Group has promoted contracts in Mexico, Africa or Puerto Rico. What happens if their counter party is not paying the bills? Are these countries reliable jurisdictions? Definitely not.
It is a story which has been told to have another month go by.
Thomas
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Post by Paul on Jun 14, 2014 17:24:47 GMT
The SG has hired a financial engineering firm who specializes in packaging these PPA's into what is considered a graded investment. The first of these PPA projects are in the United States with companies that have triple A credit ratings, therefore minimizing the risk to these financial institutions. Since electricity cost for these companies are extremely high, taking them off the grid allows the SG to meet the saving terms of the contract. They also will be running the generators an full capacity 24 hours a day and by being able to control the amount of electric usage between the end user and the grid. The SG says they will make a profit on the revenue on both ends, the end user and the grid.
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Post by John on Jun 14, 2014 19:56:49 GMT
Scuderi Group management has no experience in structuring, financing and most importantly serving a PPA.
Scuderi is again hiring people to tell them "how to get into a market that is highly competitive". (There are hundreds of companies doing the same thing. Writing PPAs, selling electricity with a conventional engine.
AAA-US-companies? Names? Contracts? Not MoUs. 2011, Nick Scuderi told me: "Dennis Rader will sign JVS (valve comp from CT) next week!" That was two years ago. More examples? They have not closed a single deal in ten years. How about the wall? Anyone remember?
On a side note, the grid never buys energy.The grid transports energy.
The Scuderis did a great job in making you believe in them. Nonetheless, the facts are working against them.
Paul, how did you perceive the comments during the investor meeting? ;-)
John
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Post by German Guy on Jun 15, 2014 8:25:13 GMT
@john: You are wrong in terms of the grid.
What Paul meant was that the owner of the building would be supplied by the energy produced by the generator and excess energy could be fed/sold into the grid.
GG
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Post by Hide and seeker on Jun 15, 2014 13:40:53 GMT
I want sal to go on shark tank. Can you just imagine what they would say ? Here's how it might go:
What are your sales ? Zero
How much have you invested to date? 80 million
Kevin O'Leary " your dead to me "
Anyone who sinks a dime into this now is a fool, anyone who sank a dime into this before was lied too, it's really that simple. I took my loss and now I am treating his investment like joke it is.
Still haven't found one shred of evidence this Mexican casino company exists,. Anyone ? Anything ?
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Post by Paul on Jun 15, 2014 13:56:08 GMT
I thought with such a large group of investors (a few looked angry) the questions would have had more fireworks behind them, however I thought the questions were pretty much uneventful. Most investors came to the meeting wanting one question answered, when will they have money in their pockets? Sal said the SG goal was to file their S-1 sometime this year, maybe that was enough to give them hope. For me there is no sense in talking about the S-1 until the SG shows the ability to bring in revenue. Sal said they have twelve PPA's and hundreds in the hopper at various stages. He also said they expect to have significant cash coming into the company within the next 60 to 90 days.
I've been an investor for seven years whats another few months in the realm of things, I'll continue to try and connect the dots and look forward to seeing how this all turns out.
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Post by hide and seeker on Jun 16, 2014 22:00:32 GMT
Why would a few look angry ? Things have never been better ! I am going to march right down to their office and sink another 50,000 into this investment. I'm going to be rich beyond my wildest dreams. I know this because thats what one of the scuderi brothers told me at one of their meetings at the basketball hall of fame. Rich I tell ya ...RICH !!!!!!!!!!!!! Who's with me ?
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Post by Thomas on Jun 17, 2014 13:31:01 GMT
Hide and Seeker,
I don't know any German investor trusting in this investment. We were told that the discontent is "just a local phenomenom" which Scuderi handled by not answering very relevant information about audited financials, compliance topics, OEM progress, repurchase of stock, and so on. In the end they were threatening investors with legal action.
Is it the same in the US? I can't believe that everyone on your side of the pond is happy with what's going on.
Thomas
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Post by hide and seeker on Jun 20, 2014 0:07:34 GMT
Lets just say even the staunchest supporters ( with the exception of paul , lol) have simply capitulated.
Their money is gone, they don't believe anything they are told and they just dont give a shit anymore.
Me? I'm just having a little fun. I am finding humor in the absurdity of the whole thing and just how low it has gone. Seriously, its such a god dam joke i cant possibly pay any real attention to it anymore.
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Post by paul on Jun 20, 2014 17:49:31 GMT
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Post by John on Jun 20, 2014 21:06:46 GMT
Thank you Paul for posting this link. Is AHIS an affiliate company of GE, Daimler or Honda? No, most likely a Mexican company that does not have any financial record at all, what a great fit to Scuderi Group, a company which is famous for its management paying itself bonuses for non-delivery.
H&S, I disagree with you. Hardly earned money has gone into it. And the Scuderis deserve to feel the heat. I perceive their behavior to be close to theft. Why didn't they spend the money for developing the engine!?
This is not a joke. I don't feel like laughing...
John
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