Tuesday, July 24, 2007

What's in a Name?

Do not confuse Global Energy, Inc. with Global Energy, Inc. The first Global Energy, Inc. is a developer of alternative fuel solutions using waste-to-energy technology. It trades on the OTC/BB under the symbol GEYI. The second Global Energy, Inc. is also in the energy business, but is perfecting gasification technologies to get a cleaner burn from coal. In June 2007, the second Global Energy filed a $350 million initial public offering and apparently has asked for the symbol GEGT from Nasdaq.

Apparently, the management teams of neither company thought to hire a brand management consultant before naming their companies. Although, in my view, it does not take an expert to see that a generic name is not going to lend itself to snappy brand name recognition, especially if another company also in the same sector is bandying about the very same name.

The coal-to-gas guys call their technology the Integrated Gasification Combined Cycle (IGCC). Yikes! There is no brand name there either. To keep things simple, the company refers to itself as GE, Inc. on its web site and in collateral material.

The waste-to-energy people have an acronym also - KDV. The company does not explain what the letters stand for, but they do elaborate on how the KDV process converts and distillates waste materials containing hydrocarbons into mineral diesel oil.

GE, Inc. (the coal-to-gas guys) has not received the green light for their IPO from the SEC just yet. Hopefully, management will spend a few dollars of the proceeds on improving the company’s web site and finding a better brand name.

The other Global Energy (waste-to-energy) recently tapped the private capital market by selling $4 million in convertible debentures. Those proceeds are already earmarked for working capital to execute on orders that are expected to arise from a new marketing and distribution arrangement. It is not likely that there will be any money left over for focus groups, but then, when a company delivers on a product that works, the brand will build itself.

Neither the author of the Small Cap Copy web log, Crystal Equity Research nor its affiliates have a beneficial interest in the companies mentioned herein.

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