CymorFund Stock Pick Dynacert A Tech Stock to Green the Earth

CymorFund Stock Pick – Dynacert

By Larry Cyna | April 15, 2013

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Periodically we publish our stock picks. Stocks that we like are “Hot” and listed below. Stocks not considered hot are removed.

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Whats-Hot-or-Not
Buy Dynacert $0.14 (DYA on TSXV)

If you want to invest in GREEN technology, this is a company to watch. We started buying stock in this company several years ago, and have watched it stumble, recover and stumble again. The company now thinks it is on the verge of commercial success.

Hydrogen

The goal is to make our planet cleaner and our use of fuels more efficient. Many companies have tried to increase fuel efficiency by injecting hydrogen into diesel engines, and all have failed – until now. The effort is to inject hydrogen into a diesel engine, thereby increasing the efficiency of the fuel burn.  If projections are accurate, the engine will use up to 15% less fuel, and the carbon emissions and pollutants will decrease to a small fraction of current emissions. At a stroke, global warming will cease being something uncontrollable.

Big hope isn’t it?

How Does Dynacert Do This – The HydraGen

The company has been designing and improving its patented HydraGen enhanced diesel engine. The HydraGen injects hydrogen into the fuel mix, it meters the hydrogen/oxygen fuel mix constantly altering the ratio of the mix for optimum performance thereby increasing the combustibility of the diesel fuel, resulting in an engine that burns hotter, more efficiently, and dramatically cleaner – or so the company claims.

 

Diesel Engines in Trucks

Information from 2006 (http://www.truckinfo.net/trucking/stats.htm) estimated there were 15,500,000 trucks operating in the USA, logging 433,000,000,000 miles annually, and consuming 54,000,000,000 gallons of fuel – a truly staggering figure. If there could be a 15% savings in fuel, that would save 8,000,000,000 gallons of fuel. Think of the reduction in costs and the reduction in atmospheric pollutants.

Dynacert claims that the average truck burns 10,717 gallons of fuel per year. It claims to have installed the Hydrogen on a test basis on 187 Pepsi large delivery trucks and after those trucks drove 18,000,000 miles, there was an average savings of 15% of fuel, and the average truck saved 4,200 gallons of fuel, as well as an 18% increase in fuel efficiency.

What this means is that the cost of installing the unit is recovered in less than 1 year, if all goes well.

So you ask, if the savings are so dramatic, why hasn’t Pepsi now installed the units on all of its trucks? The company’s answer is agency rights, contractual agreements, legalese, and other indecipherable verbiage. The company claims that current negotiations with all parties will result in such a widespread installation. There must be some validity to these claims, or the company would not be using Pepsi’s name in vain.

The California Seal of Approval – the CARB Exemption

Some years ago, the company submitted its technology and test results to the California Air Resources Board (CARB), which is the gold standard seal of approval. It was understood that without this certification, the company’s advancement would be tenuous at best.

After extended testing, CARB exemption (D-697) was granted in May 2012. (Dynacert press release May 12, 2012).  That is impressive.

 

The Best is Yet To Come

Along with these assertions of fuel savings, and improvements to the global climate, apparently the engine by working much more efficiently, lasts much longer and requires far less maintenance – a win on all sides.

But there is much more. What works on trucks, also works on diesel engines everywhere. An engine is an engine after all.

A study has been done on the Prince Rupert Port Authority. Did you know that sea ports are one of the biggest polluters on the planet? All of those lift trucks, cranes, moving equipment and dock equipment use diesel engines. Negotiations are underway to install the HydraGen on Port facilities, and the savings in fuel cost, equipment maintenance, and global warming should be dramatic.

Did you know that a significant amount of the electrical power worldwide is generated by using diesel engines, some of enormous size. In the Caribbean, almost all generated electricity is from diesel engines burning diesel duel. Similar negotiations are underway to install the HydraGen in the Caribbean.

Think about transportation in India, China, Malaysia, Indonesia and so many other countries. The majority of public transport is on diesel buses. The majority of movement of goods is on diesel trucks. Think about the very polluted air in the cities and their desperate need to reduce smog and pollution, never mind the inherent savings.

Dynacert

Dynacert trades on a junior exchange, has approximately 150,000,000 shares outstanding, and has traded in the $0.14 – $0.20 range recently. We started buying in the $0.04 range.

Cautions
The company changed its name from Dynamic Fuels to Dynacert in 2012 in order to shed its previous image, as it believed success was finally imminent, after so many years of struggle. As with all technology companies, until something is tried and true over a long period of time, all the promise can evaporate.

While the company claims to be on the verge of signing contracts for the use of the HydroGen, until it happens, it hasn’t happened.

This is a penny stock and is so because its technology is not widely implemented. If the technology was widely accepted, the stock would be far higher than $0.14. The downside to the investment is $0.14. The upside potential is dramatic.

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We may or may not have positions in the securities we name under ‘Whats-Hot-or-Not’. Whether an investment is made in a particular security depends on many factors, including portfolio balancing, timing, cash and capital reserves, asset allocation and numerous other factors. Readers are advised to do their own research and decide in light of their own circumstances. Matters discussed contain forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied.

The views expressed are opinions and are not investment advice. Persons investing should seek the advice of a licensed professional to guide them and should not rely on the opinions expressed herein. This blog is not a solicitation for investment and we do not accept unsolicited investment funds. This report is for information purposes only, and is neither a solicitation nor recommendation to buy or sell, nor an offer to buy or sell securities. We are not a registered investment advisor nor a broker-dealer in any jurisdiction. The information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of the available data.

By Larry Cyna

Mr. Cyna is an accomplished investor in the Canadian public markets for over 20 years, and has managed significant portfolios. He is a financing specialist for private and public companies, and has expertise in real estate and debt obligations. He has assisted private companies accessing the public markets, has been a founding director of public companies and continues as a strategic consultant to selected clientele. He is and has been a director, a senior officer and on the Advisory Board of a number of TSX and TSXV public companies in the mining, resource, technology and telecommunications sectors, and the Founding Director of two CPC’s with qualifying transactions in mining and minerals. He was an honorary director of the Rotman School of Management MBA IMC program, has completed the Canadian Securities Institute Canadian Securities Course & Institute Conduct and Practices Handbook Course, was a former Manager under contract to an Investment Manager at BMO Nesbitt Burns, a roster mediator under the Ontario Mandatory Mediation Program, Toronto, a member of the Institute of Corporate Directors of Ontario, a member of the Upper Canada Dispute Resolution Group, and the Ontario Bar Association, Alternate Dispute Resolution section. He obtained his designation as a Chartered Accountant in Ontario in 1971 and was the recipient of the Founder’s Prize for academic achievement together with a cash reward. He became a CPA in the State of Illinois, USA in 1999 under IQEX with a grade of 92%. He is a Member of the Institute of Chartered Accountants of Ontario and the Canadian Institute of Chartered Accountants. He holds certificates in Advanced ADR & in Civil Justice in Ontario, Faculty of Law, University of Windsor, certificate in Dispute Resolution from the Ontario Institute of Chartered Accountants. Previous accomplishments are Manager of Cymor Risk Consultants LP specializing in Risk Management Assessment; CEO of Cyna & Associates specializing in mediation and ADR; Founder & Senior Partner of Cyna & Co, Chartered Accountants, a fully licensed and accredited public accountancy firm with international affiliations; and was a partner in a large public accountancy firm. Mr. Cyna is well known in the Canadian Investing community. He is invited to, and attends presentations given by public companies usually 3 or 4 times each week. These presentations are intended by the various hosting companies to present their inside story to sophisticated parties and Investment Managers for the purpose of attracting funding, or of making parties more interested in acquiring shares of those companies. Being a part of this keeps Mr. Cyna deeply involved in the current market and leads to numerous investment opportunities.