American Power Group - The Dual Fuel Engine that Could

APGI - American Power Group INC

American Power Group (OTCQB:APGI) presents a long investment opportunity whose entry point for the wise long is now. The APG story is compelling. What makes it more compelling is the story's setting… the current flash point of growth in the use and availability of natural gas. I outline all of this in great detail in my Seeking Alpha Instablog post on APGI.

Yet, a micro-cap having a story doesn't mean they have the means to bring that story to fruition, or that they will avoid doing so on the weary, diluted backs of early investors. APGI stands at the turning point of cash-positivity, even pending profitability, and uniquely has the resources and business plan to be the micro-cap story that succeeds.

How is this so?

APGI has already completed a vast majority of the costly "heavy lifting" needed for a successful rollout of its superior and perfectly-timed diesel/natural gas conversion units. This includes spending the millions of dollars needed to have accomplished all of:

• The testing and applications to receive an industry-insurmountable number of OUL engine family approvals from the EPA (~450). The Company is working to become the first retrofit technology to obtain IUL approval and estimates the cost to complete the top four engine families to be around $500K.
• Full patent protection of their technologies and methods
• Establishing the crucial partnership with The Wheeltime Network and the costs related to technician and authorized dealer training
• Establishing manufacturing capabilities
• Hiring appropriate support and sales staff at the company level
• Proactively facilitating the solidification of the share base into a solid, company-friendly group of major holders and retail investors
• The costs of many years and millions of breakdown-free miles on their dual fuel vehicular evaluation units and stationary use evaluation units (e.g. fracking rigs)
• Establishing major partnerships with leading companies in the natural gas realm, such as Blu and Evol

As such, the company's capital expenditure budget for the coming year and beyond will see a dramatic decrease. For APGI to gain EPA approval for the one remaining OUL engine family, and the four IUL engine families they seek for their business plan, the total remaining outlay will be a only about $500,000.

Thank you YAHOO Finances - for the complete story click here