3SOF

O2Diesel Developing New Fuel for Department of Defense 
FRIDAY, APRIL 07, 2006 12:43 PM


NEWARK, DE, Apr 07, 2006 (MARKET WIRE via COMTEX) -- O2Diesel Corporation (OTD) a pioneer in clean burning ethanol diesel fuel blends announced today that it is now under contract to develop a new cleaner burning alternative diesel fuel for the U.S. Department of Defense. This new fuel will help to comply with Executive Order 13149 which requires federal agencies with fleets of 20 or more light, medium, and heavy-duty on-road vehicles in metropolitan areas to reduce their petroleum consumption by 20%.

The fuel will be composed of at least 20% renewable sources including the company's patented and proprietary natural oil based solubilizing additive -- O2D05. This fuel, when finalized, will help the Department of Defense (DoD) facilities meet local air quality requirements and strengthen its commitment to reducing the USA's dependency on foreign oil imports.

Research on this new fuel, underway at the Southwest Research Institute in San Antonio, Texas, will ensure that the fuel meets DoD's environmental, health, and performance requirements. The research will be followed by a real-world demonstration at one or more of DoD's U.S. facilities. O2Diesel's ethanol diesel blend, O2Diesel(TM), is currently in use at Nellis Air Force Base in Las Vegas, NV where it has been operating successfully since mid-summer 2005.

O2Diesel has received a contract for $800,000 in DoD appropriations to perform this research. This and similar funding has enabled O2Diesel(TM) to be recognized for its emissions benefits and petroleum displacement opportunities in the growing and highly-segmented 55 billion gallon per year U.S. diesel fuel market.

O2Diesel(TM) is an extensively tested blend of 7.7vol% fuel grade ethanol, regular diesel and the company's patented and proprietary fuel technology. The use of this fuel significantly reduces emissions without effecting power or performance.

DoD, for example, is the largest single consumer of diesel & distillate fuels in the United States. O2Diesel(TM) shows great promise in helping the armed forces reduce diesel engine emissions at U.S. military installations and meet DoD and presidential directives to cut petroleum consumption by as much as 20% in the near future.

O2Diesel(TM) has demonstrated its ease of use through testing at facilities that centrally-fuel diesel-powered equipment, including urban buses, mining and port handling equipment. Current fuel distribution equipment is used and no special engine modifications are required.

"Given the obvious need for the United States to begin taking much larger steps to reduce importation of petroleum products and to improve urban air quality, our company is beginning to take an important place in the emerging renewable liquid fuels markets. Funding from the government is enabling O2Diesel to complete all the regulatory and verification requirements that any new fuel has to meet," said Alan Rae, Chief Executive Officer.

O2Diesel(TM) is or can be made available today in any fuel market utilizing the existing diesel fuel storage, supply, and distribution network. The Company's patented renewable, natural oil derived additive technology produces a stable ethanol-diesel blended fuel which when used in standard diesel engines results in a more complete combustion and emissions of fewer toxic and ozone-forming pollutants

Quote from: yabadabado on April 06, 2006, 02:27:42 AM
Yabadabado....

This is getting very intersting.  One more day of run, I will sell all of my shares.

i hope you forgot to sell your shares.

Holy moly that's HUGE!!!!!

(just saw this one - too late as usual, but good call to yabadabadoo on picking this one at the perfect moment )

El momento de entrada no se cual sería el ideal.....el valor está muy caliente y mirando el chart semanal es posible que haga un pullback a la zona de 2/2.1, aunque también es cierto que una vez superada esa resistencia, lo normal es que se vaya a la zona de 3.75.....

Hoy está recortando algo, auque parece que no tiene muchas ganas de corregir...

Suerte.

Lo que yo veo es una especie de Doji que puede anticipar el cambio de tendencia.  Hay que confirmarlo con un buen volumen y quizas hasta con un gap en el precio

PD

Ufffffff!! que bueno encontrar mensajes en español

Ok aqui está.  Abrio con gap!!!!! Precio arriba, volumen arriba. 


Here is.  Gap up.  Now strong volume!!!!   

 

Anyone still holding OTD Some crazy, unnecessary NEWS came out after the bell. 

Form 10KSB for O2DIESEL CORP


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13-Apr-2006

Annual Report



Item 6. Management's Discussion and Analysis or Plan Of Operation
Business Plan:
The Company is classified as a development stage company as shown on our consolidated financial statements for the year ended December 31, 2005. In 2005, we expected to have sales of our O2D05 additive and O2Diesel™ in sufficient volumes to cause our status as a development stage company to terminate. Now, we anticipate that a change in our status as a development stage company will not occur until 2007 at the earliest. During 2006, we intend to devote our efforts to generating sales to our targeted customers in the U.S., Brazil and to a lesser extent, Canada, expand sales and sponsorship revenues under our CityHome™ initiative, and continue to improve our logistics network for the delivery of our products. In addition, we plan to continue a series of product tests and demonstrations that relate directly to our sales efforts, including having O2Diesel™ designated as a Diesel Emissions Control Strategy fuel in California and a TxLed equivalent fuel for Texas, if our product can be shown to be economically viable.
United States and Canada:
Our focus for the U.S. and Canada continues to be to target key geographical areas and specific diesel markets based upon:
Current and projected size of diesel fuel consumption:
• High-population centers under strict air quality regulations;
• Municipal transit and school bus fleets with an emphasis on public policy and a positive environmental image;

• Large concentrations of urban-based, centrally fueled fleets of trucks and buses;

• Off-road diesel powered equipment;

• Diesel equipment used by port facilities and large-scale mining operations;

• Military installations in non-combat vehicles.

In the U.S., O2Diesel's sales and marketing efforts for fleet sales will be focused in the state of California, as well as the northeastern states of New York, New Jersey and Pennsylvania.
Taken together, these three areas account for about one-third of all diesel fuel used in the U.S. In Canada, we intend to concentrate our efforts on the country's large population centers in the Eastern and Western provinces, but until we have commercialized our technology in the US, no significant resources will be devoted to Canada.
In late 2003, when we first began our sales efforts, we intended to rely heavily on our marketing partner, Octel-Starreon ("Octel"), to launch O2Diesel™ in the U.S. and Canadian markets. During 2004, both we and Octel agreed that Octel did not have the ability or the time to take an active role in selling our products. Until December 2004, Octel served as our exclusive sales agent for the U.S. and Canada. In December 2004, we terminated our existing agreement with Octel and entered into a new agreement by which it agreed to become a non-exclusive sales agent for the same territories. Under this new agreement, Octel will earn a smaller commission on sales than it would have earned under the previous one. Also, as part of the new agreement, Octel will provide to us, on an as needed basis, laboratory and other technical assistance, including a quality control function.
As a result of changing our agreement with Octel, we have hired an internal sales force to advance our sales efforts. During 2004 our sales force identified potential customers that fit the profile to use O2Diesel™. These were mainly centrally fueled fleets that were served by jobbers. In selling to these customers, we faced several challenges. Almost all of these challenges centered on the logistics for delivering O2Diesel™ to the customer. O2Diesel has devised parallel strategies to meet our sales goals, and we are continuing to perfect these strategies.
Under the first element of our strategy, we have signed distribution agreements with 9 jobbers, who in turn have centrally fueled fleets as their customers. We plan to sell additive to the jobbers and assist them in purchasing ethanol by either locating ethanol suppliers or purchasing and reselling ethanol to them. However, we will only purchase ethanol as an accommodation to a jobber, because we do not wish to tie-up our limited working capital to finance the purchase of ethanol. The jobbers will blend our additive and ethanol with diesel fuel and then sell O2Diesel™ to their customers. O2Diesel's sales force and technical staff will work jointly with each jobber and it's customers to assist in the transition from the use of regular diesel fuel to O2Diesel™. A key part of working with each customer is to provide safety and training materials covering the use of our fuel. In addition, O2Diesel's technical staff plans to work with each customer in the process of purchasing and installing flame arrestors and other devices for customer vehicles and storage facilities. In some cases, we will be responsible for sourcing and installing these devices while, in other cases, our technical staff will only have an oversight role. Finally, our technical staff will work with the customer to insure that its storage facilities are clean and are compatible for storing and dispensing O2Diesel™.



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During 2004, we developed a new sales and marketing concept styled as CityHome™. This program stresses the environmental benefits of our fuel and is designed to improve the air quality in urban locations. We expect this initiative to be a key component of our sales/demonstration strategy. In short, CityHome™ provides a means for municipal transit agencies to convert their fleets to O2Diesel™ without having to pay the higher costs of our fuel. CityHome™ programs are now being rolled out on a limited basis, mostly to municipal fleets in smaller cities in the Midwestern states. We have been successful in attracting fuel distributors to work with us in getting this initiative started.
Currently, we have four cities using O2Diesel™ in CityHome™ installations, and we are in discussions with several others to participate in the program. Through an innovative cost sharing concept with companies that wish to be good corporate citizens (sponsors), we have designed a program which permits the municipalities to purchase our fuel at costs which are the same as what they pay for regular diesel fuel. Corporate sponsors, generally with a national or international presence, will pay sponsorship fees to O2Diesel to take part in a clean air program for one or more of the communities participating in a CityHome™ program. In return for sponsorship payments, each sponsor will be given access to currently unused advertising space on buses and other advertising assets owned by the municipality. Sponsorship fees will become additional revenue for us and will be recognized as such when the related advertising is displayed and all other criteria for revenue recognition have been met. Costs that are intended to be supported by the sponsorship fees are recorded separately in the related expense line in our statement of operations.
With regard to the advertising space, since the CityHome program is still in its beginning phase and since we have been unable to assess the fair market value of the advertising space received, we assign no value to the space at the time of the receipt. We are recognizing the value associated with the advertising space when we enter into a contractual arrangement with a third party. The Company will consider assigning a fair value to the advertising space received at the time of the initial sale when such fair value is more readily determinable, based upon a history of cash transactions.
CityHome™ has become one of the mainstays of our sales/marketing and product demonstration strategy. Following its launch in several smaller cities, CityHome™ will be marketed to larger municipalities throughout the U.S in select target markets.
As another part of our sales strategy, O2Diesel's sales force plans to market and sell O2Diesel™ directly to large centrally fueled fleets, government municipalities and others that operate centrally fueled fleets of diesel powered equipment. These target customers may initially include truck, bus and school bus fleets, construction and mining companies as well as port facilities, and, later on, railroads, agricultural users, and the military.
In these cases, we will likely be responsible initially for all logistics required to deliver O2Diesel™ to the customer. To achieve this end, we will continue to work with fuel distributors that have the ability to blend diesel fuel, ethanol and additives for delivery to a customer's central fueling location. We will supply our additive and may purchase the ethanol for delivery to the fuel supplier, although our clear preference is to not finance the purchase of ethanol for our customers. In the process of transitioning a customer's fleet to O2Diesel™, we need to put in place the logistical support to insure that fuel is delivered on a timely basis. In this regard, O2Diesel is seeking to create a network of ethanol suppliers and fuel transportation providers. With these large fleet customers, our technical staff will work closely with each in all facets necessary to prepare the vehicles or other equipment to use O2Diesel™. This will include a review of the customer's fueling facilities for cleanliness and compatibility to O2Diesel™, arranging for the cleaning of tanks and filtering systems as necessary, as well as either purchasing and installing flame arrestors and other devices or assisting the customer to do so.
In Brazil, O2Diesel plans to target customers on a very focused basis. In general, these will be miller fleets (sugar and ethanol producers), municipal bus and other fleets, and to a lesser extent, centrally fueled truck fleets. We have established a small sales force and technical staff in Brazil. The roll out of our product has been much slower than planned. Obtaining government approvals and gaining market awareness has taken longer than we anticipated. In response to these matters, we have made a decision to follow a less aggressive marketing strategy for Brazil. We have taken steps to reduce our overhead and will scale back our marketing plans until we have a solid base of customers in Brazil.



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Brazil's fuel distribution system is more concentrated than that found in the U.S. As a consequence, O2Diesel must join with one or more large fuel distributors that can blend and deliver O2Diesel™ to customers in Brazil. In January 2005, we signed a Memorandum of Understanding with a company reported to be the sixth largest fuel distributor in Brazil. This company was to serve as our exclusive distributor for O2Diesel™ in the South and Southeastern regions of Brazil. This Memorandum of Understanding is no longer in place, since O2Diesel has decided to cooperate on a non-exclusive basis with Brazil's largest fuel distributor, BR, the distribution arm of the state-owned mineral oil company, Petrobrás. BR/Petrobrás is to supply readily blended O2Diesel fuel to the municipality of Rio de Janeiro. Failure to attract distribution partners to cover other parts of Brazil will likely set back our timetable for achieving market penetration in that country.
Cash Requirements and Risk Factors:
Based on current projected levels of operations and expenditures, we will need to raise additional funds over the next twelve months. To date, we have not had any bank trade facilities, except an overdraft line in the U.K. used to meet operating needs. This overdraft facility was repaid and cancelled during 2003. However, if the Company achieves significant sales, we plan to apply for trading lines with banks in the U.S. and Brazil as a means to finance our working capital needs.
Significant technical and logistical issues continued to affect our ability to generate sales in 2005. While we have made significant progress in addressing these challenges over the course of the year, they have led to a need to raise additional funds to be used not only for working capital, but, also, to allow us to meet the listing standards of the AMEX.
First, as part of the process by which O2Diesel™ was approved for sale in California, the California Air Resources Board set a number of conditions that we must adhere to on an ongoing basis. One of the conditions is that all storage tanks in which O2Diesel™ is stored and all vehicles that use the fuel must be fitted with devices known as flame arrestors. Flame arrestors are safety devices which are intended to prevent a fire in the case that a spark or other type of ignition might inadvertently enter the fill inlet of a fuel tank. Imposing this requirement proved to be a serious issue in 2004 and early 2005, and has negatively impacted our ability to efficiently commercialize our technology in the U.S. Even though flame arrestor technology has been used for many years in other applications, flame arrestors in the required sizes and designs were not yet available as an 'off the shelf item' for use with O2Diesel™ during this time.
The Company has taken several steps in 2005 to overcome these problems and to support the introduction of O2Diesel™ fuel to new customer opportunities. First, we assembled our knowledge and documentation regarding the design requirements of flame arrestors in the market areas we served and developed a catalogue of flame arrestors and parts that can be used for a wide variety of engine/vehicle types and customer applications. Second, we developed a checklist of procedures to be used by our technicians (in conjunction with our customer) that enabled our technicians to prepare a comprehensive fleet profile of hardware requirements, tank cleaning procedures and the time required to perform the work necessary to bring a fleet on-line. Third, we have identified several equipment vendors who we plan to work with so that needed equipment can be delivered to customer locations quickly and at competitive prices. Fourth, we have developed a training program that will enable our technicians to teach our customer's fleet maintenance staff about handling and storage of O2Diesel™ fuel, fleet modification and maintenance issues that can be expected. Finally, we have developed a modest parts inventory at our laboratory facility so that in the event of an emergency, required parts can be supplied to our customers. Our present planning methodology is based on a 40-day implementation time frame that requires the project to be a joint effort utilizing the customer's employees and identifies the timing and costs that the customer can expect.
During 2005, we continued the research and development efforts begun in 2004 to design and to identify flame arrestors, adaptors and other equipment for vehicles that use O2Diesel™. Some of these devices have undergone and passed tests to insure that they are capable of complying with all required specifications. In 2006, other flame arrestors will be developed and subjected to the required tests. In addition, we have learned that certain engines require the fitting of a primer pump to insure that the vehicle starts and runs properly in hot weather. These devices are simple and readily available and the costs are known, but the necessity of adding these devices to certain vehicles could increase our costs and may increase the time required to transition a fleet from using regular diesel fuel to the use of O2Diesel™. Lastly, in some buses, we have had to install safety fueling devices in the fuel inlet that serve the function of flame arrestors, but are generally more expensive. These particular devices are readily available in the market.
To support our implementation efforts, we commissioned a third party engineering consulting firm to review our written safety training procedures as well as to conduct on-site reviews of four of our customer locations in order to evaluate the adequacy of the training and the quality of safety procedure implementation. The ensuing report from the consultant indicated that our safety program requirements were well conceived and were being followed quite closely at all locations. Additional safety procedures to enhance this program are currently being evaluated.



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Another concern we have relates to the logistics and storage of O2Diesel™ for fleets and other diesel equipment that may use the fuel. At the end of 2004, we had not completed the required logistics arrangements to identify and finalize the best infrastructure to insure that we can arrange for a supply of ethanol to blend with our additive and then arrange for the timely delivery of O2Diesel™ to potential customers and its proper storage once delivered. In particular, it is very important that storage tanks be cleaned prior to the introduction of O2Diesel™ into the customer's refueling station. We have made important strides in working with customers to insure that their storage facilities are compatible with O2Diesel™ and have now included them as a critical component of our implementation planning process.
In order to insure fuel quality, we have developed a quality control function that constantly tests the ethanol used by all customers. We have learned that it is necessary to test the quality of diesel blended with our additive and ethanol. Establishing our own laboratory facility has been a significant help to us in developing quality control standards, and for carrying out the tests that are necessary in preparing a fleet for conversion to use O2Diesel™. None of these tests are time consuming or technically difficult, but they are critical to ensuring that our product functions as intended. As we gain more experience, it may not be necessary to conduct the level and frequency of tests that we expect to do over this coming year.
As part of this on-going learning curve, we have confirmed that it is important to carefully select ethanol suppliers because there is a wide range of fuel grade ethanol in the marketplace. It is critical that the ethanol component of O2Diesel™ be of a consistently high quality and that it meet certain other specifications. Selection of ethanol suppliers and creating a relationship with those that can provide the quality of product we require is a significant need, and is a task that we will devote more time to in 2006. We are currently working closely with two industry groups, the American Coalition for Ethanol and the Renewable Fuels Association to identify ethanol suppliers who meet our criteria. All of these issues have led to a greater lead time than expected to convert a fleet from using regular diesel to O2Diesel™. In fact, we have seen that the time it takes to do the conversion work can be the most important factor in bringing on more customers to use our fuel. As a means of mitigating the time required for converting a fleet, we have sought to have our customers to do much of this work under our direction. However, this policy is dependent upon obtaining an agreement from the customer to do the work. The actual time required to convert a fleet to use O2Diesel may be further limited by the availability of the customers' vehicles to be in one place long enough to affect the required changes. In some cases for safety, insurance or union reasons, customers will require that they do all of the work necessary for their vehicles and diesel powered equipment to use O2Diesel™, as well as arranging to insure that their storage and dispensing facilities are compatible with the use of the fuel. The Company anticipates that the work achieved in 2005 will allow us to bring all of these factors into the implementation planning process so that we can avoid the costs and delays we experienced in the past.
The technical challenges over this past year have presented significant hurdles to commercializing our technology. In most cases, we have overcome these obstacles by the application of technical resources, payments to support our customers and a high level of customer service. All of this has been time-consuming and has slowed our ability to bring our product to market. But it has also created a base of knowledge which should prove helpful as we continue our efforts to commercialize our technology. We have been encouraged by the fact that among our customers, we have a municipal bus fleet and a port facility that have been successfully utilizing the fuel for more than one year. Even though we have gained a significant amount of technical knowledge during 2005, we will continue to refine our efforts in this area in order to improve our ability to bring on greater numbers of customers and to better predict the cost and timing of the work required to have fleets conform to the requirements of using our product.
Given our projected level of expenses and the cash on hand as shown on our consolidated audited balance sheet at December 31, 2005, it is clear that we lack adequate cash to conduct our business according to our business plan. On February 3, 2006, the Company offered existing warrant holders an opportunity to exercise these warrants at the reduced price of $.35 per share. As of February 27, 2006, the Company had received commitments to exercise warrants representing 1,864,035 shares for total proceeds of $652,412.
Even with the capital raised in 2005, we believe it will be necessary to raise additional funds of approximately $10.5 million in 2006 to allow us to execute our business plan and to be in compliance with the AMEX's listing standards. There can be no assurance that we will be successful in our efforts to raise additional funds. Nor can there be any assurance that the Company will generate sales and collect cash to offset our operating expenses. As shown in the consolidated audited statements of operations contained in this report, we have generated only $195,607 in sales for calendar year 2005. As of the date of this report, we have only minimal orders on hand for either O2D05 or O2Diesel™. Lastly, there can be no assurance that actual events will not differ from those anticipated, or that general economic conditions may not vary significantly in ways that could negatively impact our operations and cash position.



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Research & Development:
As part of our cooperation agreement with Cognis, we, along with Cognis, are the joint owners of all patents covering both the use and composition of O2D05. Patent applications have been filed in twelve countries for O2D05, including the U.S., Canada, Brazil, and Europe. For this purpose, Europe is counted as one country. As such, the patent application for Europe covers 20 countries, including the more populous countries of the U.K., France, Germany Italy and Spain. The patent applications for the U.S. Brazil and Canada are pending. All legal costs associated with preparing, filing and administering the jointly owned patents are shared equally by the Company and Cognis. We also have a number of patents that have been issued that relate to the predecessor technology of O2D05. As a strategic measure, we continue to fund all costs necessary to maintain some of these patents. O2Diesel is the sole owner of these latter patents, which in general cover the use and composition of its prior generation technology.
We have filed trademark registration applications in the U.S. and the European Union for a mark which includes the words and numbers O2Diesel as well as a figurative logo of the words.
As mentioned earlier, we developed a new marketing initiative in 2004 which is styled as CityHome™. On November 11, 2004, we filed applications for the trademark "CityHome" (and design) in eight classes of goods and services. An application was also filed for the trademark "TODAY'S CLEAN AIR SOLUTION TOMORROW'S BRIGHTER FUTURE" covering one class of goods and services. During 2005, we incurred substantial costs in carrying out tests to demonstrate that the use of our product will enable customers to comply with environmental laws and regulations. More specifically, in 2005, we incurred expenses of $1,013,105 in the U.S. in connection with governmental sponsored projects and tests. Most of the costs incurred in these government test programs were reimbursed by appropriations from the U.S. Departments of Energy and Defense. At the start of 2006, we have government test programs in progress with total remaining costs to complete of approximately $2.6 million. Under these programs a wide array of engine tests and product demonstrations are to be conducted to further prove the emissions benefits of O2Diesel™ and to show that the fuel performs well in specific applications.
Included in the foregoing programs are product demonstrations in Nevada to test O2Diesel™ in non-tactical military equipment, and to test it in California in a fleet of refuse trucks. Other programs underway include completing the protocols to allow O2Diesel™ to be classified as a Diesel Emissions Control Strategy fuel by the California Air Resources Board. Still other tests will include using O2Diesel™ in large mining equipment as well as seeking to obtain a military procurement specification for the fuel. In January, 2006, we initiated a project to develop a fuel that would meet EPA's alternative fuel requirements for the military. Based on the government funding in place, we believe that approximately 80% of the costs to conduct these tests may be funded by appropriations from the U.S. Departments of Energy and Defense.
We will also continue to devote time and to invest in the design and development of flame arrestor technology. We have found that this is more labor intensive and time consuming rather than requiring large outlays of capital. Most of the design work has been performed by our own personnel and consultants with the actual fabrication work contracted out to specialized manufacturers. We expect this work to continue in 2006.
In 2005, we spent about $18,000 USD in Brazil for research and development projects and to obtain approvals for O2Diesel™ from the agencies in Brazil responsible for the country's petroleum industry and environmental laws. These approvals are administered and granted by two Brazilian agencies - ANP and IBAMA. ANP is the National Fuel Regulation Agency and IBAMA is the National Environment Protection Agency. Approvals are needed from both agencies before O2Diesel™ may be sold in Brazil. In 2004, we submitted applications to both agencies and received limited, but favorable approvals from each. ANP has classified O2Diesel™ as an alternative diesel fuel. In addition, IBAMA, approved O2Diesel™ for off road (e.g. in mining) and railroad applications. Also, in response to requests that we submitted to ANP, it granted approval for O2Diesel™ to be sold to specific customers and for specific regions in Brazil. In 2005, O2Diesel fuel has obtained approvals from the environmental and health secretaries of the Cities of Rio de Janeiro, Curitiba and Maringá.



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O2Diesel fuel has also become the first alternative fuel to be certified by the TECPAR's national certification program Transporte Limpo (Clean Transport). For 2006, we anticipate spending about $20,000 USD for various product and vehicle tests in Brazil.
Employees:
At present, O2Diesel has twenty full-time employees of which seventeen are in the U.S. and three are in Brazil. We have no part-time employees. During this past year, we have relied extensively on consultants to assist us to commercialize our technology and to help us in key technical areas. At present, we use ten consultants; three in marketing; one for investor relations; one for logistics; two as field technicians, one laboratory technician; one chemist and one in regulatory affairs.
We will add new personnel in 2006 based on the pace of our commercialization. Under our plan, we do not see the need to add employees in the U.S., or in Brazil, but we do plan to add two technical positions for our European market testing and development in 2006, bringing our total employee count to twenty-two by the year-end. We anticipate continuing to employ ten consultants serving in most of the same capacities in 2006 as in 2005. Item 7. Financial Statements
The Company's consolidated financial statements are filed with and begin on page F-1 of this report.
Item 8. Changes in Disagreements with Accountants on Accounting and Financial Disclosures
On March 23, 2006, the Company announced that Ernst & Young LLP ("E&Y") would resign as the Company's independent registered public accounting firm . . .

I would have suspected that they would do a secondary while the price was high.

The good news is that they are organizing their own sales force.  The bad news is that this is a dinky ass company and I was hoping they would give me anoter week of gains before I became a bagholder.

This will go the same way as GNBT - another POS.

What bothers me is that I knew this was a scam stock (see Snowcat's Hot Stocks) but thought I could ride the wave.  Oh well, drowned again.  $1.50 on Monday?

Snowcat, what stocks fo you refer or call SCAMSTOCKS, stocks that go from $3 to $1 within 1 week ??

I'm hoding OTB.....    

... and now   I don't know what to do...

Sell on monday  or wait  until.... when?

what a relieeeffffff!!!!

To me,Scamstocks are stocks with no real product and at a closer look, no real business.

One, which I made a lot of $$ on is XSNX.ob
http://finance.yahoo.com/q?s=xsnx.ob

One employee and a product "in development" - lots of newsletter recommendations but nothing else.

Look at OTD - one order for $800k to DEVELOP fuel for the DOD.  No cash flow.  How long b4 they do a secondary looking for more cash?
http://biz.yahoo.com/iw/060407/0122055.html

A stock like that goes from $1 to $3 is a good gamble if you own it.  I own OTD and plan to ride the wave of Ethanol enthusiasm, but I plan to get out b4 it busts.

If I had more brains than balls, I never would have gotten in in the first place.

A better bet - also being pumped by the newsletters - is XTHN.ob, the company makes ethanol out of garbage.

Sold apr. 17 at 2.65.  Nice profit 12.77%

does Veridium Corp VRDM fall into this category? I know they make ethanol with corn