HYRF

[David Randolph]

As you probably know already I bought a stock, EYII.OB, for the $1,000,000 adventure.

I bought EYII because it has a good product to sell and it received a letter of intent from a governmental Chinese corporation to buy $210M of that product, throughout 2006 and 2007.

EYII sells the product, but the producer of the product (a water filter) is another small company, HYRF.

HYRF has a market cap of just $6.39M, and EYII ordered, just for the months of August, September, October, November and December 2005, more than $7.5M in filters and pitchers (this was before the LOI from the Chinese).

I made some math. The order from EYII was for 72,000 filters a month, until the end of the year, which gives me 360,000 filters in total. HYRF says the value of the order is to exceed $7.5M, but lets consider $7.5M as the number. $7,500,000/360,000,000 = $21 is the price of each Code Blue filter.

I found out, listening to some product presentation from EYII, that they sell the filters for $70 each.

Of course, the Chinese will negotiate the price based on the extra-large amount of their order. And EYII will probably do the same to HYRF. Let's say the final price set for the deal is $50 and EYII pays HYRF $18 for the product (this can't be called an estimate, just speculating here).

$18/$50 = 36%. 36% of $210M will end up being revenue of HYRF (the producer), which totals $75.6M for the two years, 2006 and 2007 combined.

After all it doesn't seem HYRF has a lot more potential than EYII (usually the seller gets more money than the producer), but anyway the stock is undervalued at this point.

Technically the stock rose a lot on the news but fizzled almost completely, due to lack of liquidity and the need for a reasonable chart pattern I believe. Now, with a second leg down a technical bottom can be put in place, and certainly the fundamentals of the company deserve that. Insiders have been buying some stock, not much, but some, and that's always significant. A couple of months ago an institution bought a block of shares at price $0.27.

Considering all this today I'll buy $1,000 of HYRF for the 3 Pennies on Fire Portfolio, in connection with the $1,000,000 adventure.

(This recommendation was made by David Randolph from 3 Stocks on Fire. 3 Stocks on Fire is a Community of stock traders and investors. Our 2814 members change trading ideas and strategies on our message boards everyday. We welcome you as a new member of the 3 Stocks on Fire Community, please take 10 seconds to register and receive our free newsletter)

[firestocker]

eyii  sounds  really good,  why isnt it on the 3 pennys on fire??  just curious.

[David Randolph]

Because I already bought EYII for the $1,000,000 experience and I don't want help from anyone following the 3 Pennies on Fire Portfolio.

Instead I bought HYRF for this portfolio, since the story is identical.

[Stocksquire]

HYRF is a fine choice. 

FYI, based on my conversations with IR at HYRF, they are expecting more in revenues from the EYII deal than $75.6mil.  But, even at your numbers, HYRF seems like a steal at this pps.

[chuparosa]

I bought this one a little prematurely at 0.20 a few days ago.  I liked the story.  Am glad to see it added to the 3 Stocks on Fire portfolio.

[Stocksquire]

The Code Blue filter -- made by HYRF and distributed by EYII -- is the only filter on the market that removes 100% of the arsenic from water.  Not Brita nor any other filter on the market does it (but the Code Blue filter can be inserted into a Brita pitcher  ).  There is a huge opportunity for both HYRF and EYII.  See the below anaylsis from http://members.shaw.ca/duncancrow/arsenic-in-drinking-water.html.  Note that Marti is a portfolio company of HYRF:

Duncan Crow
Wholistic Consultant       


Arsenic removal from drinking water

The ONLY filter proven to remove 100% of the arsenic in drinking water is available here. MARTI is cheap insurance allows you to avoid the many health problems associated with arsenic in drinking water.

[Buy an arsenic filter here]

[arsenic in drinking water references]

Arsenic contaminates our drinking water. While some occurs naturally in North America, most of the contamination is man-made.

The World Health Organization (WHO) suggests that a very small amount -- 5 parts per billion (ppb) -- noting, "Long term exposure to arsenic via drinking water causes cancer of the skin, lungs, urinary bladder, and kidney", and Health Canada adds thickening and discoloration of the skin; nausea and diarrhea; decreased production of blood cells; abnormal heart rhythm and blood vessel damage; numbness in the hands and feet. Further, Health Canada suggests that we invest in an in-home water treatment device that can reduce arsenic exposure.

Arsenic depletes your selenium, which is used to make glutathione peridoxase, a crucially important healing agent and detoxifier that is used in the body's energy cycle and also as an antioxidant that prevents damage to the mitchondria that produce the energy. The result of (ATP) depletion is low energy and cell death; this results in a failure to thrive and wasting of tissues, a hallmark of the autoimmune disorders. Arsenic has also been linked to diabetes. Although we will get sick and eventually die from low but chronic exposure to arsenic, Health Canada's drinking water quality guidelines allows 25 ppb in drinking water of livestock and humans, several times higher than could b considered to be safe.

Surveys of arsenic concentrations in rivers and lakes indicate that most are below the EPA 10 ppb standard for drinking water, although individual samples near point sources of contamination may range up to 1,000 ppb. The WHO in 1999 estimated 13% of the small municipal systems in the United States, and an estimated 20% of private wells in the United States were above 10 ppb. In some western areas with volcanic rock and sulfide mineral deposits high in arsenic, arsenic levels up to 3,400 ppb have been observed, and in western mining areas up to 48,000 ppb have been reported. Arizona, Illinois, New Hampshire, New Mexico, Southern California, New England, areas around the Great Lakes, and much of the central plains have high arsenic levels. Click here for a rough map of arsenic concentrations in ground water in the USA, and here is a county map.

Although smelters and mines, and their tailings and ash disposal are known hot spots, many recent studies mention treated wood as another cuplrit (both in use and in landfills). For example, one study found that soil under treated wood playground equipment contained up to 24 times more arsenic than areas just 10 metres away, and even touching pressure-treated wood gives you arsenic exposure according to this Canadian Cancer Society article. Burning tainted wood waste only spreads the arsenic around, a point that the Groundwater newsletter makes in their coverage of CANFOR's use of arsenic in the interior in a desperate attempt to kill the Mountain Pine Beetle.

Obviously, doing what we can do to avoid arsenic exposure is good, and the introduction of the ONLY water filtration system that eliminates 100% of the arsenic is nothing if not timely. Essentially Yours Industries, the company that also brought us Prosoteine to help increase energy by healing mitochondria that produce it, has the exclusive right to sell Code Blue water filters. In the cheapest and simplest portable incarnation from Metal and Arsenic Removal Technology Inc. ( MARTI http://www.martiinc.com ) Code Blue is a pitcher and cartridge system that is similar to the hugely popular Brita system (a Code Blue cartridge will fit a Brita pitcher); this has been used by the U.S. military in some of their foreign campaigns. Also available are other systems for industrial, municipal, and residential use. MARTI systems use a proprietary compound (ARTI-64 T) that cleans the water without pH adjustment, no harmful byproducts are produced, and treatment is unaffected by nitrates, phosphates, silica, or sulfates.

Jay Sargeant, President and CEO for EYI, states: "I fully expect that all of our distributors and customers will see that the nutritional support products we offer can only be enhanced with the pure water that will be provided by the (Code Blue) water systems. It seems like such a simple solution, and now we can offer our customers an exciting and innovative way to deal with a problem that has been recognized worldwide. We intend to price and sell the units at an affordable price so that Canadian and American families can benefit."

This is a HUGE development with significant growth potential for both publicly-traded companies. Distributors and agents are welcome. Start here now and let's get Code Blue out there to remove the arsenic in drinking water.


--------------------------------------------------------------------------------


Arsenic in Drinking Water References:

Compare the Code Blue (MARTI) water filter to the rest of the pack:
http://www.martiwater.com/arti64.htm

This site has an EPA map of where the KNOWN arsenic is, and remember the states that are gray, are not the healthy states, they are simply the states where there was no testing!!
http://www.nrdc.org/water/drinking/qarsenic.asp

http://www.usatoday.com/news/health/2001-05-02-bottled-water.htm

http://www.usatoday.com/news/health/women/2002 -01-08-water-pregnancy.htm

http://news.bbc.co.uk/1/hi/world/europe/1309841.stm

Map link for Arsenic in Water problem areas in US: http://miraculewater.com/images/ArsenicMap1.jpeg

More maps at: http://www.agiweb.org/geotimes/nov01/feature_Asmap.html

and at: http://water.usgs.gov/nawqa/trace/arsenic/



Arsenic ( From: http://www.nrdc.org/health/kids/ocar/chap7.asp )
The most significant non-occupational exposure to arsenic now occurs through the contamination of drinking water. There are numerous studies of populations with exposure to high levels of arsenic through drinking water (at levels above the current EPA standard -- unchanged since 1942 -- of 50 ppb). In humans, skin cancer has long been associated with chronic ingestion of arsenic.[47] Bladder, lung, and other types of cancer have also been observed at elevated rates in populations exposed to arsenic in tap water.[48] In the United States, more than 50 million people drink tap water containing arsenic, mostly at levels below EPA's current standard of 50 ppb. It has been estimated, however, that 25 million people in this country are exposed to at least 25 ppb of arsenic in their drinking water and that as many as 350,000 people may be exposed to levels greater than the 50 ppb standard.[51]

California state experts found that water containing arsenic at the level of the EPA's current drinking water standard (set in 1942 before arsenic was known to cause cancer) presents a risk of more than one cancer in every one hundred people exposed -- 10,000 times higher risk than the EPA's standard "acceptable" cancer risk of one in one million.[52] This is extremely troubling because 35 million people in the United States drink water every day from their community water systems that contain arsenic at a level of over 1 ppb, which presents a very significant cancer risk.[53]

While numerous studies in other countries have demonstrated arsenic's carcinogenicity at moderate to high doses, a handful of very small studies done on U.S. populations have failed to show a statistically significant increase in the risk of developing skin cancer at low dose exposures. The difficulty of demonstrating adverse health effects may be due to the type of study design and the small populations studied, both of which decrease the statistical power of a study to detect adverse health effects.

Researchers from the University of California recently found increased rates of death from vascular diseases such as arteriosclerosis, aortic aneurysms, and other diseases of the arteries, arterioles, and capillaries among Americans living in areas with relatively higher levels of arsenic in their drinking water.[54] Another study found a link between this widespread drinking water contaminant and diabetes mellitus.[55]

According to the study of large populations in Taiwan, people who receive significant levels of arsenic in their drinking water have a six to ten times greater risk of developing diabetes mellitus. The researchers found that there was a dose-response relationship -- that is, the more arsenic in the drinking water, the more likely the person was to be diabetic -- reinforcing the weight of their findings. The researchers concluded that chronic arsenic exposure "may induce diabetes mellitus in humans."
Water In the News
Good water quality report links.

Study: Bottled water no better than tap water

Bottled Water: Pure Drink or Pure Hype?

BBC News: Bottled Water, A Waste Of Money!

Dirty tap water puts pregnant women at risk

Our Children At Risk

Weed Killers By The Glass

Study: http://www.waterwarning.com/editorials.htm

Study: http://www.waterwarning.com/waterfact.htm

http://www.nrdc.org/water/drinking/qarsenic.asp

http://www.who.int/mediacentre/factsheets/fs210/en/index.html




Duncan Crow HOME

[David Randolph]

Thanks for your posts and analysis 

HYRF's fundamentals have changed for the better, but the chart wasn't ready for any advance, and these higher opens certainly don't help (because they favor a red or black candle, instead of a white one).

But I'll show patience while the chart gets itself together for the expected powerful advance.

[Stocksquire]

HYRF's CEO, Dennis Mast was interviewed on the wallstreetreporter.com today.  During the interview, he stated that the combined companies of HYRF will be doing $500mil per YEAR in income in two years.  Anyone think that the current $6mil marketcap is undervalued? 

http://www.wallstreetreporter.com/profiles/HYDROFLOINC.html

[fill_the_gap]

Copied from another board:

Hydroflo (HYRF otcbb) is a legit business development company about to recognize explosive revenue growth that dwarfs it's current $6M market cap. Their portfolio of 100% owned subsidiaries sells patented technology and products to purify water, including the only one that easily removes arsenic - a serious growing international health threat. One of their distributors, EYI, recently announced a letter of intent from a Chinese importer to sell $210M of HYRF's products (http://biz.yahoo.com/iw/050815/093063.html). In addition to that potential deal, before its announcement, the CEO reported in an interview that they expect $40M of revenue for 2006 and are currently processing $8.6M of orders as of early August (http://biz.yahoo.com/iw/050809/092682.html). With only a $6M market cap, the $.17 share price can easily grow to many times this amount once these revenues start getting recognized and reported.

The company is legit, fully reporting, free of litigation, profitable as of last quarter, with a clean balance sheet and minimal needs to experience share dilution. Their last sale/issuance of shares was at $.27, so you can even get in under that price. It is heavily owned by insiders and thus has a small float. This might be an exceptional opportunity, before it gets discovered. I'm accumulating before their 10K filing release by end of September.

Cd

[David Randolph]

Great post fill_the_gap, it says it all 

Yesterday HYRF finally gave it's first bullish sign, reacting positively to the descending trendline (prior resistance, now support).

There's no doubt I'll continue to hold this penny stock, whatever happens.

[David Randolph]

Some news on HYRF:

«HydroFlo CEO Featured in the Wall Street Reporter
Aug 18, 2005 12:43:00 PM

RALEIGH, NC -- (MARKET WIRE) -- 08/18/05 -- HydroFlo, Inc. (OTC BB: HYRF) announced the company's Chief Executive Officer, Dennis L. Mast, is featured today in an interview in the Wall Street Reporter. The topics of discussion include HydroFlo's five portfolio companies and all patented technologies that are marketed by the corporation. The interview also centered on the objectives and expectations for corporate expansion into the next calendar year.

During the interview Mr. Mast explains the latest agreement amendment with Essentially Yours Industries, Inc. (EYII) and the $210 million letter of intent received by EYII. He also discusses his projections and outlook for substantial financial growth of HydroFlo in the next 2-3 years.

To hear the entire interview, visit www.wallstreetreporter.com. The interview can be accessed by locating the ticker symbol (HYRF) on the right hand column under the OTCBB exchange heading.

About HydroFlo

HydroFlo (http://www.hydroflo.us) is a Business Development Company, as defined by the Investment Act of 1940. Headquartered in Raleigh, North Carolina, HydroFlo's core focus is to seek out synergistic acquisitions that will provide capital appreciation and income from its portfolio companies. The mission of HydroFlo, Inc. is to acquire and develop innovative technologies and businesses that will improve the quality of water throughout the world by means of detection, treatment, and removal of contaminants. By so doing, our most precious resource can be rendered safe and abundantly available for all future generations, and thereby, improve the quality of life on Earth.»

[422fwhp]

Such excellent work guys.  Looks like a great find...I will nibble today.

[basonista]

OK, I'm going to take a stab at some TA here.

The chart on HYRF over the last couple of days is very encouraging.  After the sell off after the big white candle on Monday, we can see support was quickly found at the Tweezer Bottom of Wed/Thurs at $0.165.  This would normally indicate a possible trend reversal (albeit a short 2 day correction) which was confirmed on Friday with the Spinning Top and much higher volume than on Thursday.  I will feel better with continued strength on Monday but at the least it doesn't look like HYRF will be following the downtrend line anymore with strong support around the $0.165-0.170 level and an increase in volume to the upside.

I am even more encouraged by the consolidation that happened on the intraday (I know we don't look at intraday noise but it gives me a warm fuzzy feeling in this case) from Tuesday-Thursday.  A close at the high yesterday would have been a nice finish.  Again, Monday will show solid confirmation of an uptrend if the market decides to make it so.

Thoughts?  Am I way out in left field here?

[David Randolph]

Nice technical analysis basonista, I fully agree with you.

HYRF is getting more and more ready to advance, just look at the volume increase at the bottom of the chart below. They're getting big orders from EYII and the thing has just started. Look for a big revenue and earnings jump over the coming quarters.

If the EYII letter of intent with the Chinese turns into a signed contract I estimate that of those $210M about $75M will end up as HYRF's revenue from this deal alone. Not bad for a company with just $6.75M of market cap 

Now, even if the LOI doesn't turn into a contract, HYRF is still very undervalued and I expect many positive surprises over the upcoming quarters. So HYRF is a long term fundamental holding of the 3 Pennies on Fire Portfolio.

[archie2]

As you probably know already I bought a stock, EYII.OB, for the $1,000,000 adventure.

I bought EYII because it has a good product to sell and it received a letter of intent from a governmental Chinese corporation to buy $210M of that product, throughout 2006 and 2007.

EYII sells the product, but the producer of the product (a water filter) is another small company, HYRF.

HYRF has a market cap of just $6.39M, and EYII ordered, just for the months of August, September, October, November and December 2005, more than $7.5M in filters and pitchers (this was before the LOI from the Chinese).

I made some math. The order from EYII was for 72,000 filters a month, until the end of the year, which gives me 360,000 filters in total. HYRF says the value of the order is to exceed $7.5M, but lets consider $7.5M as the number. $7,500,000/360,000,000 = $21 is the price of each Code Blue filter.

I found out, listening to some product presentation from EYII, that they sell the filters for $70 each.

Of course, the Chinese will negotiate the price based on the extra-large amount of their order. And EYII will probably do the same to HYRF. Let's say the final price set for the deal is $50 and EYII pays HYRF $18 for the product (this can't be called an estimate, just speculating here).

$18/$50 = 36%. 36% of $210M will end up being revenue of HYRF (the producer), which totals $75.6M for the two years, 2006 and 2007 combined.

After all it doesn't seem HYRF has a lot more potential than EYII (usually the seller gets more money than the producer), but anyway the stock is undervalued at this point.

Technically the stock rose a lot on the news but fizzled almost completely, due to lack of liquidity and the need for a reasonable chart pattern I believe. Now, with a second leg down a technical bottom can be put in place, and certainly the fundamentals of the company deserve that. Insiders have been buying some stock, not much, but some, and that's always significant. A couple of months ago an institution bought a block of shares at price $0.27.

Considering all this today I'll buy $1,000 of HYRF for the 3 Pennies on Fire Portfolio, in connection with the $1,000,000 adventure.

(This recommendation was made by David Randolph from 3 Stocks on Fire. 3 Stocks on Fire is a Community of stock traders and investors. Our 2814 members change trading ideas and strategies on our message boards everyday. We welcome you as a new member of the 3 Stocks on Fire Community, please take 10 seconds to register and receive our free newsletter)