Opinions about Scuderi Group's misuse of funds

[Paul]

An investor update came out today, so far the feedback has been very positive.

[Terminator]

Paul - by positive feedback, do you mean the fact that they are now offering FOUR warrants and that the deadline was again extended until 31 July? I smell desperation and fear. Probably next month they will be offering 500 warrants, then 50000 and then ... R.I.P.

[Tobacco Man]

I am stunned what the Scuderi family has accomplished. Where can I transfer my money to? The company account or directly Sal and Nick's private account?

[Paul]

Typical response expected from those looking to benefit from the demise of the Scuderi Group. You didn't happen to mention that the SG listed a sampling of projects either signed or expected to be signed within the next 30 to 60 days. You didn't happen to mention the expected revenue on equipment sales to be around $40 million dollars and yearly power sold revenue close to $27 million dollars. Oh! you also forgot about the 29 initial sites which represents 10 different industries and that represents a small sampling of business they expect to have in the future. So let's sum it up, they have the ppa's, the can get the financing for these projects, which equals revenue for the Scuderi Group and a lot of potential growth in the power generation industry.

Your posting are being made for your own selfish reasons, you don't want the Scuderi Group or the investors to be successful in any way otherwise your own deviant reasons can never be successful.

[hide and seeker]

Your right Paul, those of us that invested 80 million dollars don't want them to succeed. Really? You cant be serious? Maybe being lied to a hundred times has made a difference in our opinion of them. You go on believing all the bullshit that they spew and the day they get a dollar, ONE FUCKING DOLLAR, in revenue, I will say you may be right. Until then, FUCK them.

[German Guy]

For a financial analyst you, Paul, have no clue at all or by making these claims you participate in this scheme.

You wrote: "You didn't happen to mention the expected revenue on equipment sales to be around $40 million dollars and yearly power sold revenue close to $27 million dollars" implying that Scuderi Group will generate revenues of $40m (by selling the equipment) and $27m annually (by the sale of electricity).

First of all, Scuderi Group either will have to buy engines and sell electricity or sell the engine but will not participate in the power generation. Since they claim to have PPAs they would not generate revenues by selling the engine but own the engine (most likely indirectly through an SPV). The question is: How to buy engines worth $40m with having raised less then 4m in the last twelve months? Don't forget that FOUR warrants are still offered. Banks will ask for a minimum equity investment of $8m for any kind of project finance. Given the operational expenses Scuderi would need additional $5-$10m. And as of today, given the feedback from bankers no investment bank is willing to work with the Scuderis anymore.

Scuderi does not answer questions if they comply to the SEC order. You can access them on sec.gov. At the same time they make people believe how "close the IPO is". Make your own judgement. Mine is that the Scuderis have screwed investors and they continue to do so. At some point we will find out if I am right. My guess is that it won't take long.

GG

[Paul]

GG,
Your a little lost, let me try and help you with your confusion. Once the power purchasing agreement is signed there will be a Special Purpose Entity formed.
The projects will be financed through these special purpose entities and the SG who is a seperate company from the Special Purpose Entity will be "paid in advanced" for the equipment. Since the the financing is based on the credit worthiness of the end user financing will be easily obtained. The SG will make a profit on the sale of the equipment and will also make a profit on the long term contract for the sale of electricity to the enduser. As far as the raise goes, the SG can use a few bucks to bridge them until the revenue starts coming in which based on the latest update should happen fairly soon.

[GG]

Thank you so much! You have proven again to have no clue.

Weren't we told several times that "Scuderi Group will set up SPVs". Explain to us the way typical SPVs operate. How are these SPVs consolidated? Is finally Scuderi Group adopting US-GAAP or continues to use Little-Italy-Accounting Principles from 1933? I expect the latter. The LI-AP continues to provide the possibility to pay adhoc bonuses, you never have to provide audited financials and you are allowed to list at the Palermo stock market.

The project financing only relies on "end customer credit worthiness"? Tell us how credit ratings are being done.

You are funny. You made me laugh

[Paul]

You complain about the SG talking in circles and then you continue to do the same thing?
If you want to know how a SPE works, wikipedia might help you better understand them.
Once the power purchasing agreements are signed, cash flow analysis are done and they go to a financial engineer who gets them financed. Finding out the credit worthiness of the endusers are simple, financial statements, bank references and trade referenes, maybe a D & B report. This is more than enough information to make a decision on the credit worthiness of the endusers. Once the SG announces there first income to it's investors it should be interesting to see how you will attempt to put a negative spin on that too. Your motives are not in the best interest of the investors, soon you will disappear into oblivion.

[Anthony]

www.investopedia.com/terms/s/spv.asp
new here, invested into BC's last chance club. If they go undr, SPV still owns patents? See link above.

BC works for SG. Conflict of interest? Wonder what to do.

[Hide and seeker]

1 dollar, just 1
Once they do this or when they do that, whatever, all totally irrelevant.... One dollar.

[Paul]

I agree with Hide and seeker, once the revenue starts coming in the Scuderi Group will be on their way towards success. I've spoken to a few SG power generation reps today, they are very positive and confident the SG is on the right track towards success.

[German Guy]

THE FUTURE OF THE SCUDERI GROUP IS BRIGHT, the Power Generation business has taken off, the SG has a recently signed a Power Purchasing Agreement with a developer to provide electricity to their 500 acre project with a Scuderi Power Generator. The SG states this is the first of many deals they expect to have in the future. It appears the Scuderi Power Generator will be the only Generator ever built that can produce and store energy. I think most investors right now are actually very excited about their investment. There seems to be a lot of envy from other engine developers and you can try and convince me that's not the case, but I call it the way I see, it's nothing more than envy.

Paul, July 24, 2013.

Sales as of today=$0.

Hide and Seeker: I could not agree more. As long as the dollar is being audited.

[Paul]

WOW! I can't believe I was that accurate in my prediction from July 24th, 2013, as an investor it was a longer than I would of liked, but the SG seems to be on track for success in the power generation business.
1) The future of the SG is bright. Check
2) Power Generation business has taken off. Definitely
3) The SG states this is the first of many Power Gen deals. Absolutely
4) The Scuderi generator will be the only engine that can produce and store energy. Check
5) German Guy will soon disappear. Check (he can't stand the sight of SG success). Why?
I'm going to miss your postings, it's been a real pleasure trading comments on the blog.
Paul

[Terminator]

Paul, you've been taken for a ride by the Scuderi Bros. Stop embarassing yourself.