SNN #10 - New Profile

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December 9, 1998



StockNetworking News No. 10  (SNN)

NEW PROFILE:

COMGEN CORPORATION

Symbol:  CGEE

Trades:  OTC  -  BB

Closing price Friday Dec 4: $ 5.50

Phone:  1-877-608-1611



SNN has a new Profile for our subscribers to review and 
evaluate  -  COMGEN CORP.

We feel this company has a strong business plan in the 
environmental technology business.

THE BUSINESS:

COMGEN has developed a highly efficient process for 
converting waste oils, of all types, into diesel fuel. The
importance of finding an economical solution to the problem 
of waste oil cannot be over emphasized because of the 
devastating impact oil can have on the fresh water supply. 
One gallon of oil can pollute 1,000,000 gallons of fresh water 
and 25% of waste oil being generated into the world
today is now being illegally dumped into the environment.

The principals of the company have refined this technology
over the past 15 years to the point that they can economically 
operate their system and show a profit, without government 
subsidies or grants. In the past this type of technology could 
only be profitable with government assistance which usually 
took the form of tax breaks or outright grants. This has been 
the case in almost all areas of recycling to date.

BUSINESS STRATEGY:

Dr. Roy Jefferies and Mr. Peter Rzazewski,  the  companies 
co-founders, have vended the rights to exploit this technology 
into a US public company, COMGEN CORP.

Their purpose in going public now is to raise capital, which will
allow them to expand sales of the COMGEN technology, but 
also to allow COMGEN to participate in Joint Ventures of the 
operating side of the business.

Rather than simply selling, installing and servicing these 
operations they want to participate in the downstream cash 
flow and profits which they have seen their customers enjoy. 
In this way they hope to gain a form of royalty from the 
technology.

As an example, in Poland they have seen their primary 
customer go from a one man operation, with limited 
resources (as a result of which they virtually financed him
into his first operation) to a position today where he has 
eight installations throughout Poland and he recently 
chartered a jet to take 42 of his key employees for a one
week all expense paid vacation in Cyprus.

A significant portion of the equity that COMGEN will put 
into each Joint Venture will come from their profit margin 
on equipment sales.

The Joint Venture strategy is important because it will provide 
a number of strengths to the enterprise:

     The operating partner will be "hands on" at the local level 
     and they will have a significant financial investment to 
     protect.

     The J.V. partner will have local access to feedstock 
     (used oil) for the plant. 

     They will have a collection system in the form of a truck 
     fleet and storage facilities for the used oil, and ideally,
     they will have sufficient additional zoned land to construct 
     the COMGEN refining system.

The playback on COMGEN's investment in these J.V.'s is 
projected to be between 2-5 years depending on the amount 
of government subsidization (if any) that is available.

SIZE OF MARKET:

Messrs. Rzazewski and Jefferies have been involved in the 
installation of 70 of these plants worldwide.

Over the past three years they have sold, manufactured and 
installed 19 plants in Europe, the Middle East, Asia and 
Australia.

They have not touched the environmentally sensitive markets 
in North America or Western Europe.

The US generates 1.5 Billion gallons of waste oil each year 
and it would take over 600 systems to recycle this oil alone.
Discussions have commenced with various parties in regard
to developing this market.

COMGEN also has written expressions of interest from 
multi-national corporations in the Middle East/India market 
and Asia, in regard to both manufacturing and operating 
these systems on a Joint Venture basis. As these 
discussions progress we will update our subscribers.

There are other opportunities that are being developed in 
the area of co-generation of electricity from diesel powered 
generators.



SUMMARY:

This is a brand new company with a proven technology that 
is poised to grow rapidly.

The stock has performed extremely positively to date, no 
doubt as a result of the rumors of this impending deal. 

Although this can be a slow time in the market, it may provide 
an  opportunity  to  pick  up  the  stock  prior  to the  January -
February period which traditionally sees some of the largest 
upside moves of the year.

SNN strongly recommends that you keep COMGEN CORP.
(Symbol:  CGEE)  on  watch,  as  we  expect  some  major 
announcements from the company in the near future.

If you have any questions regarding Comgen or would like
further information e-mailed to you please call the company
at:  1-877-608-1611

 

NuOncology Labs Inc.

NOTE: SNN has learned that the Senior management from 
NuOncology Labs Inc., will be doing a road show in Europe 
this coming week. Stops are scheduled with investors and 
fund managers in Frankfurt, Paris, Geneva, Zurich, and Milan.

NuOncology Labs Inc. (Symbol: NLAB-OTC BB) closed at a 
new high of $10.31 on Friday December 4, 1998.


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Received on Wednesday, 9 December 1998 18:35:11 UTC