GETG continues to burn cash while producing awful performance. The latest quarter, the company appears to have capitulated on marketing its appearance and G-oil products, with predictable results. It's a shame, since the G-Oil was ground breaking product. Appearance wasn't quite so unique, but had better margins. Now the company is better all its chips on Well Wake Up. It's not easy to assess the prospects for this product line as with the consumer products, especially when the beta customer is government of Venezuela.
What started as a scam when the drunkard JM got into bed with Zuckerman and his penny stock pumpers, evolved into a real company, which unfortunately executed poorly on its business opportunities. Mainly because it chased too many opportunities with too little capital, and failed to build a large enough loyal customer base. The "go for it all" decision to pursue the biggest/most demanding retail channels (Home Depot, WalMart) before the company had ironed out kinks in its supply chain was an amateur mistake. The decisions to invest in national marketing and NASCAR sponsorship, was wasted because the company didn't have the resources to support and follow-through. Too many products, too many channels, too many verticals -- remember the green lighter fluid, the chain oil (actually a very good idea), etc.
Unfortunately good products can be defeated by amateur merchandising -- which is what came from Jeff and Jeff. Now the future is with well stimulation -- great name, but same lame execution. It's not over yet, because the company had always found a patron saint -- first Paul A., the TTI and now Galesi, who had self-interest in maintaining the facade of GETG == but there isn't much brand value or other assets, so not clear what happens in 2014 -- take private, bankruptcy, muddle along, cram-down, reverse split -- who knows -- that why there is a market. The stock is just an Option on possible go-private.
What do we really know about the Well Services products? I think Inventek supplied the ingredients. I think Galesi's E&P company fronted the money to purchase the inventory, but did so in way that wasn't counted as revenue. Galesi demo'd the product to stimulate old wells in Venezuela. Anticipated orders haven't yet happened. While I think it's wonderful Inventek and Galesi run this business through the public company they both own much of, it's not clear what value GETG adds. Galesi is in total control. None of us can tell if the product is really unique. It would be nice if Galesi E&P had US customers using the product or better yet, Canadian oil sands.
Unexpectedly bad 10Q - Appearance Product fell apart. Oil too. Company cut marketing, with predictable results. In a downward spiral. The only reasons to keep holding this dog are (a) hope that Galesi is going to buy out the public soon at a fair price or (b) the Hail Mary product (oil well stimulation) comes through. Hard to gauge likelihood of either.
The only thing missing from today's PR was how big PDVSA's order will be. Come on, guys, you passed the test with flying colours, now how big will the party be. Could you have picked a worse customer - state oil company of Venezuela. I am hard pressed to name a more corrupt and mismanaged oil company anywhere.
Could you provide more insight into what the G-Clean Wake UP (great name) product actually is -- does it use the G-Oil technology or some concentrate from Inventek?
I think Green has huge long term potential -- and GETG's oil products will one day be widely used. However, this company is burdened with self-interested controlling parties, inept management, poorly focused strategy, etc., therefore is squandering its opportunities. I predict Galesi will take this private, straighten out the management and marketing, focus on oil field cleaning products, etc. and make a fortune. Too bad the public won't be around for that. Waiting for the 13e-3. There will be some gain from pre-announcement level, but Galesi has incentive to let this one fall further before announcing.
Get em cheap applies to common shares sold to insiders at 8-10 cents. What a deal. GETG needs to explain its funding and survival strategy. Aren't they overdue on filing SEC statements? I am guessing we'll see a take private proposal shortly from Galesi Group -- so they have little interest in promoting the shares.
Public is getting crank shafted.
It's reassuring to see insiders putting their own IRA money into this company, which has moved with glacial speed to build an IPP with small natural gas CHP installations. When will the financial results reflect the great business opportunity we've heard about for so many years. I know JH is a genius at spin outs and juggling opportunities, but I am not sure it's working for this one.