Thursday, February 27, 2014

OndaVia, Inc. --instant water testing system

This looks like a very promising technology and might be worth investing in --if, and when it becomes a public company?

OndaVia, Inc. | OndaVia, Inc.:

It's not clear from the article whether or not OndaVia has patents locking up their technology.  I'm sure there are other competitors in this business.  The technique has also been used in other applications, such as evaluating blood samples, or air samples --but not exactly the same way.

As many West Virginians wait weeks to learn whether their water is safe, prize-winning startup OndaVia could quicken testing

• This is the third article in a five-part series on new water technologies. Also read about Livestock Water RecyclingCambrian Innovations andCalifornia Safe Soil

Bill Lascher

Thursday 27 February 2014
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As some West Virginia residents continue to await confirmation about whether their tapwater is safe to drink, new technology is being developed that might one day dramatically cut down the time it takes to bring water supplies back online during such disasters.
"In this day and age when you can send a tweet from a shower, the ability to get immediate information is just essential," said Mark Peterman, the president and co-founder of rapid water testing startup Ondavia, one of 12 companies named a finalist in Imagine H2O's annual global competition for water startups two days before the massive chemical spill affecting West Virginia. "These are issues that affect human health."
Water is also an increasingly prevalent business concern. In its 2013 US Water Report, the Carbon Disclosure Project found that nearly half of the S&P 500 companies who responded said they have experienced water-related costs. Some reported costs of up to $400m, and projected those costs could one day reach as much as $1bn, according to the study.
Although many companies listed "water scarcity" as their biggest concern, the number of businesses who said water quality was a "substantive business risk" grew considerably over 2012, with 31% more respondents listing it as a risk for their direct operations and 69% more naming it a risk for their supply chain. Stable water quality is crucial especially to the US's booming natural gas industry, the CDP report said.
OndaVia, which already counts oil and gas companies as well as environmental remediation firms among its customers, entered the competition to reach potential clients in agriculture and food and beverage processing. OndaVia wants to expand the range of customers who might benefit from its portable detection equipment, which allows users to deploy interchangeable cartridges to test for a variety of contaminants in the field, instead of lengthy lab tests that can delay solutions. Winners will be announced in mid-March.
"Unless you're willing to pay a very large amount of money to accelerate the testing, it's going to take a fair amount of time to get results back," Peterman said.
Here's how it works: if a farmer wants to test for a particular contaminant, say, perchlorate – a chemical that occurs naturally but is also found in bleach, fertilizers and other products, and may cause thyroid problems – he or she would connect OndaVia's shoebox-sized reader to a laptop computer, place a drop of water on a cartridge calibrated to test specifically for perchlorate, and plug it into the reader. (Peterman says he hopes the system can be scaled down in the future.) Two to five minutes later, the system generates detailed data about the concentration of perchlorate in the sample.
"It's that speed of being able to do the testing and get immediate results, and we are also making a system as easy to use as possible so it doesn't require PhD chemists in the lab doing the analysis and interpreting the results," Peterman said. "The guy that's normally out in the field collecting the samples, could be going and getting the results, logging them right there and going on to the next well."
OndaVia's testing equipment uses a process known as Raman spectroscopy. The technique illuminates samples with lasers and identifies molecular "fingerprints" based on the spectrum that's returned. Other enterprises also use Raman spectroscopy to analyze water quality. A team of Dutch researchers, for example, have used it to test for bacteria such as E coli and Legionella.
Peterman wouldn't discuss details about specific customers, though he said Ondavia works with companies like Nalco, a water treatment services firm (and a division of Ecolab), an oilfield services provider called Schlumberger, and General Electric on a variety of applications.
"I expect the outcome to be some kind of acquisition, just because the capital needed to build up the sales and marketing for something that does dozens or hundreds of different cartridges is rather large," Peterman said. "There are a lot of different directions it could go."
Will Sarni, an enterprise water analyst with Deloitte, wrote the executive summary of the CDP report, in which he noted that investors are beginning to identify opportunities among the many risks in the water sector.
"Where there are quantifiable risks, there are business opportunities in new products and services," Sarni wrote. "These opportunities include investments in new technologies and companies and the development of new business strategies."
Sarni isn't familiar with Ondavia specifically, but said real-time information about water could matter to a variety of businesses, such as the mining industry.
"The mining sector can't select where they mine, so if they're looking to extract ore in a water-scarce or stressed region, they have to think about being very efficient with respect to water or ensure that they have desalination equipment."
Ondavia's selection as a finalist follows a two-year, $450,000 award from the US Agriculture Department last fall that will fund the company's development of cartridges to test for boron, a mineral that can be toxic to crops.
Whether or not OndaVia wins the Imagine H2O competition, the company will evaluate its business strategy. Peterman says the contest is providing key feedback about which key contaminants farmers and food processors want identified most.
"We can only swing the bat so many times as a startup, so let's hit a good pitch and pick the right contaminant," Peterman said.
So far, though, the product isn't approved by regulators to use for official compliance, so the company is doubling down on its process controls. Peterman believes OndaVia can help prevent refineries from expensive shutdowns before a corrosive chemical reaches crisis limits, or provide information about pesticides and herbicides being washed off crops so farmers can make adjustments in real time.
For now, however, official, slow lab analysis will still be the norm. The science is evolving so fast, Peterman said, that he thinks the future of water testing will look like something out of science fiction.
"[Water testing] is going to reach a point where we're going to end up with a tricorder and Spock's going to be able to go out and wave it over the water and get a list of everything that's present," Peterman said. "We'll get there. We'll get there with one technology or another, but we're headed that direction and we're headed there fast."
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Friday, August 30, 2013

HULBERT ON INVESTING: Lofty Profit Margins Hint at Pain to Come for Stocks - WSJ.com

Mark Hulbert in the Wall Street Journal has a very powerful argument for a possible correction in the Stock Market.
HULBERT ON INVESTING: Lofty Profit Margins Hint at Pain to Come for Stocks - WSJ.com:  I tend to believe what he's saying!

His primary recommendation is to move to cash.  Maybe put a little into "high quality" stocks and maybe some into emerging markets.

Thursday, August 22, 2013

Blackberry? Math Advances Raise the Prospect of an Internet Security Crisis --could it raise BBRY stock price?

The stock of Blackberry (BBRY), (Formerly: Research in Motion)  was as high as $230 in 2007, but now is around $10.  It's clear that Blackberry made some major strategic errors in management, product development and taking advantage of opportunity.  Many people think that the company is "on the ropes" and might not be able to continue. Canada is worried: http://allthingsd.com/20130822/canadas-worried-about-blackberry-and-it-should-be/   Blackberry's  sales are down, it's latest products are not all that innovative or desirable, and investors have lost confidence in the management.
However the company does own Certicom which has the patents on an encryption system called Elliptic Curve Cryptography (ECC).  This article in MIT Technology Review: Math Advances Raise the Prospect of an Internet Security Crisis | MIT Technology Review: points out that Russia uses ECC for encryption, as well as NSA.  The Air Force used Blackberry for mobile communications because of higher confidence in its ECC-based security.  While BBRY's hardware business segment has been stagnant or losing ground, its service segment which represents 24% of it's revenue produces most of it's income. Although the net earnings of the company is negative.  The value of the company is very difficult to determine, since there are no earnings or dividends and sales are falling.

Even though Blackberry's business seems to be slowing overall, there is a lot of speculation about the value of their patents (see this "blackberryrocks" article.).  Some have valued the patents at $5B.    Intellectual Asset Management (IAM) in Feburary said it might be worth $2.25B. The current market cap for BBRY is about $5.2B.   According to this MIT article, the value of the ECC patent could soar if mathematicians figure out how to break the more popular encryption algorithms (RSA and Diffie-Hellman).  Apparently there are potential methods of attacking the RSA and Diffie-Hellman encryption algorithms, however the mathematics has not yet been fully developed.  In addition, it appears to me that the "Moores law" advances in computing power will also work against the current algorithms, since the article says that they can now be broken, but only with huge amounts of computer power over a long time.

Most of the world's banks now use the RSA & Diffie-Hellman encryption algorithm.  If they fear that these algorithm's are able to be easily cracked, they will be forced to move to a stronger and more secure form of encryption.  Currently the only one available is the ECC algorithm which is protected by Certicom's patents.  The article says that if that happened, the US Government would simply take over Blackberry and Certicom.  However, I believe the Government would end up paying the owners of the intellectual property for the right to use it.  According to online articles, NSA has been paying Blackberry for license rights.  Why wouldn't they continue to pay?  And why wouldn't the banking industry pay for the licenses?  On the other hand, there are some who believe that Blackberry has given up a lot of the value in its patent portfolio through existing cross-licensing agreements.  See this article,  All of this is very difficult to evaluate.
Would that make Blackberry a good, long-term investment?  Would the value in Certicom's patents make the stock of Blackberry worth more than it is currently valued?  It apears that many of Certicom's ECC patents won't expire until mid-2020s, so the question is:  Will RSA  Diffie-Hellman algorithm be "cracked" prior to the mid 2020s?  If so, those patents could be worth a lot!

Sunday, August 18, 2013

Is it time to go global when investing?

The Union Tribune today published in the business section an article written by Carolyn Geer of Wall Street Journal ( Diversify your Portfolio with International Stocks )  that suggests that investors put more of their money into overseas companies and funds.
She suggests putting 20-40% of our portfolio into international stocks, and she suggests some ETFs and Funds that she believes would be good.

I'm concerned about US bonds -- Interest rates are certain to rise as QE "tapers off" by the Fed.  As rates go up, both short and long term bonds are also certain to drop in price.  As rates go up, US investors will look at buying CDs at higher rates, rather than investing in stocks.  Margin rates will go up, so speculative investors will have higher costs, and possibly will buy fewer stocks.  Rising interest rates will also affect corporations investments in plant and equipment, and risk-taking new ventures.  We also expect that rising interest rates could affect the housing industry.  First time homebuyers will find higher rates, and higher payments, so may defer buying, or buy smaller homes.  Builders will have to pay higher rates for construction loans.
So is Overseas investing going to protect us from that effect?  It's possible that higher rates in US will attract capital from other countries and raise the rates there too?  So foreign bonds will also fall in price.  So many corporations are multi-national that if the business slows down in the US, it will likely affect businesses in other countries as well.  

Recommended Funds:
Vanguard Total World ETF (VT) which tracks the FTSE Global All Cap Index
TRowe Price Global Allocation Fund (RPGX)

Also VEURX, EWA (Australia), PRASX (New Asia Fund), MAPTX (Pacific Tiger) and PRLAX (Latin America)

Wednesday, January 16, 2013

Nanoparticle Enables World Record for Energy Storage in Batteries - IEEE Spectrum

Sean sent me a link to this news article about an amazing break through in battery storage using nano particles

Nanoparticle Enables World Record for Energy Storage in Batteries - IEEE Spectrum:

If they are able to scale this up and get it into production, this breakthrough will allow 5 times the amount of energy to be stored in a battery.  That will mean that car batteries will allow a car to travel 5 times as far between charging, and all of our hand held devices will last longer before needing to be plugged in.  I think it could dramatically change how we use devices.  It will make all other batteries obsolete!

Right now it is just Stanford University, SLAC and a scientist named Yi Cui.  However what ever company gets the first licenses for this new technology may be a good investment.

Friday, May 4, 2012

Meda AB has new drug Dymista for seasonal allergic rhinitis

According to this article in Therapeutics Daily, this Swedish company has patents and now has FDA approval for a new drug that may be better than those on the market.

Tuesday, March 13, 2012

Metabolix: Bio-industrial Evolution

I saw an article in the January 9th edition of Bloomburg Businessweek titled:  "Keeping the Sea Safe from Plastic"  This company Metabolix is a joint venture with Archer Daniels Midland and it produces Polyhydroxyalkanoate plastic (PHA)

Metabolix: Bio-industrial Evolution: