So, how are Railpower's Green Goat Sales Doing anyway?

Someone is certainly doing a good job with the "spin" management on that story, saying the recall is the result of "one" of them burning. Seems like there have been several postings of incidents and sightings of fire damaged green goats on this forum over the last year or two.

The fleet recall is now posted on Railpower's website:

http://www.railpower.com/dl/news/news_2007_06_01_e.pdf

Notice the standard warning about "forward looking" statements, it seems more appropriate now.

Railpower now has several job openings posted on their website, perhaps some people are leaving?

http://www.railpower.com/careers.html

Perhaps people are leaving, I'm not sure but at Alyth (Calgary), Alberta the units are built by a contractor - Alstom. I understood that all were built by subcontractors. I'm not entirely sure but the job postings seem likely to be related to development. Except the posting for "Reliability Productivity Engineer" that could be related to the recall...

Their website shows $15 million going into the recall of the Green Goats:

http://www.railpower.com/dl/news/news_2007_07_18_e.pdf

Union Pacific has agreed to take delivery of all 98 Green Goats, provided they are delivered on or before July 31st. This news is taken from a news release dated July 24th. http://www.railpower.com/ At the time of the news release 90 units had been delivered.

Railpower's first half financial results are now available on their website, the figures are not good. Shows a net loss for the first half of $42.2 million dollars, remaining reserves of $7.2 million, and indicates they are seeking additional financing. With a massive credit crunch about to hit, this is not a good time to be out looking for money. The figures are right at the top of page three of the report:

http://www.railpower.com/dl/news/news_2007_08_02_e.pdf

Today (August 16th) the stock was down to 39 cents a share, bad news for the financial institutions that bought up the 2004 offerings at over $5 a unit (a share plus an option). Given the credit situation worldwide, I don't see how they are going to finance more debt given their past performance. Has anybody heard any additional news?

Here we are at September 19th and Railpower stock is down to 32 cents now (lost almost 20% of its remaining value in the last month). No notices on their website that they were able to get any additional financing.

Looks like writeups about them in the media have ceased too. Anybody seen anything recent?

Wow, 28 cents a share this afternoon! Lost 12.5% in one day!

From the looks of their 'News' (last dated 12 Sep 2007), seems like they are skipping the Hybrid design for GenSets instead (and 6 axle ones at that).
Wonder if any other company would want to buy Railpower (or, more likely, the designs and contracts).

You know for technology development company, I'm not surprised that RailPower is in this situation. It's pretty typical for a company which is trying to establish a market for its products and that it is a recent (~2000)startup company. If Railpower fails financially, then I'm sure someone will buy their designs cheap.

Railpower stock ended the week at 23 cents a share! That's approaching a 50% drop in value in just over one month.

Let's buy some shares, so that when the carcass of RP is purchased...

Dave Becker

pablo wrote:Let's buy some shares, so that when the carcass of RP is purchased...

...they'll offer you 1cent or less per share - believe me, that's a losing investment for anyone but the brokers (I got skunked for a thousand or so doing just that during the dot-com crash - ironically, the company in question was NOT a tech or communications company, but I guess while a rising tide lifts all boats, a flushing toilet sinks all turds...)

That is a great way to put it. I have got to remember that one!