SulphCo. Inc

Today's stock that we are going to talk about is a little different. There is not a lot of fundamental history to talk about with Sulphco, but they have patented a sonar "cracking" or breaking down of heavy crude oil. The world is not running out of oil. It is running out of nice light easy to refine oil. As more and more crude oil that is newly discovered is a heavier oil, it requires more refining. There are much fewer in the world that can refine heavy crude. Sulphco just signed there first contract to use their process. Investing carries risk. Please do not invest money you cannot afford to loose.



SulphCo. Inc. is a developmental stage company, engaged in the development and commercialization of technology for the upgrading of crude oil. The company's Sonocracking process is based upon the use of ultrasonics that include the application of energy and frequency sound waves, which alters the molecular structure of crude oil, decreases the relative density and the viscosity of crude oil, and increases the amount of lighter oils that can be recovered during the refinery processes.
This technology also reduces the weight percentage of sulfur and parts per million of nitrogen in the chemical composition of crude oil. The company serves crude oil producers and refiners. SulphCo has a collaboration agreement with ChevronTexaco Energy Technology Company and a joint venture with Trans Gulf Petroleum Co. to implement SulphCo's Sonocracking desulfurization technology.
SUF Investor Highlights
Announced that it has signed an agreement with Pt. Isis Megah ("Isis"), an Indonesian oil and gas services company, which grants Isis an exclusive distributorship in the sales territories of India, Malaysia, Singapore and Indonesia.
Announced its first customer order, procured through Isis, for Sonocracking units with at least thirty thousand barrels per day of processing capacity.
Reported results from the first and second rounds of testing in Europe. Two sets of testing programs were completed with minimal operating issues and the appropriate analyses have now been completed.
Reported that the interest level in the Sonocracking process remains high as potential customers see the value that can be driven by the technology.





Trades:

Covered Call
But stock @ 4.51
Sell March 5 call @ 0.55
12.2% return in 36 days


Hedge Wrap
Buy stock @ 4.51
Sell March 5 call @ 0.55
Buy March 2.50 put @ 0.05
11% return in 36 days



Talk to you next week.