GREY:ARGEF - Post by User
Comment by
morriconeon Apr 18, 2012 2:17am
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Post# 19806014
RE: RE: A little PPG DD
RE: RE: A little PPG DD If there was "no doubt that it works" then RGX would not be building a pilot plant would they? They would be building the first of the production modules. This new technology. Believe it or not it could actually fail. RGX has to prove to the world - and to themselves - that it works, step by step.
PPG doesn't know if the process works. Obviously they think that it might but that's an easy belief because they're not risking any money at the moment. They could walk away at any time if they lose confidence. Soon they will have to commit to putting up money, probably a whole bunch of it but by then they'll have a warm feeling from the pilot plant that things work. Or perhaps it doesn't and the only warm feeling they'll get comes from a dog peeing on their leg.
Back 20 years ago Dow Corning built a pilot plant near me to extract silicon from sand (silicon dioxide). New process. Great stuff silicon, lots of demand for making semiconductors. I guess it worked well enough in their labs for them to build a $25 million pilot to see it it would work in the real world and was scalable. Oooh, sorry, but it didn't work. The dog peed on their leg. After 2 years they walked away and wrote it off.
Whenever someone here states there's "no doubt that it works" I always think of that Dow thing. As an investor it's better to be a little bit scared. I'd rather be a little bit scared than foolishly overconfident.