The Lee-Tseung Lead Out Theory

[ltseung888]

Another academic exercise:

The question:

Can your team draft a business plan assuming that Wang Shen He wants to sell his technology for the under 10KW market to a buyer for US$1 billion?

This is a good challenge and an academic exercise for Forever Yuen and team.  She now has eight other students helping her.  Some are majoring in Economics.

The outline of the business plan is as follows:

(1) The Product under consideration
(2) The Asking Price
(3) The Terms of Sale
(4) Market Analysis
(5) Competitive Analysis
(6) Risk Analysis
(7) Expected Return
(8 ) Summary

Market Analysis

In general, we can classify all our tools, machines into two types.  The first type uses human energy.  The second type uses electric, chemical or other types of energy.  As society progresses, the second type is replacing more and more of the first type.  Humans consume more and more energy.  Most of the existing energy used are from irreplaceable fossil fuel.  Others rely on the sun, wind or tide.  Nuclear energy is still unreliable and extremely unreliable.

Lead-out-energy devices are pollution-free, virtual inexhaustible and easy to maintain.  The Wang 5KW electricity generator is only one example of the lead-out-energy devices.  There are different schools of thought:

(1)   All tools, machines etc. will be lead-out-energy devices in the foreseeable future.  In other words, all tools have their own power supply.  This would eliminate the electricity companies totally.
(2)   Every family will have a flying saucer.  These flying saucers have powerful magneto propulsion units (MPUs) which are lead-out-energy devices.  Existing electric tools can still be used.  The energy comes from these MPUs.
(3)   Electricity Companies will still try to maintain the present structure so that they can have monthly income from every family.  They will have the lead-out-energy devices at the substations or in the power supply rooms of hotels or office buildings.  This is the strategy used by the Chinese Company investing in Wang and others at present.

We expect a migration period.  Scenario (3) will hit the market first.  Worldwide announcement and demonstration are in the works.  Products for electricity companies will roll out before the announcement of the Wang 5KW electricity generator.  There will be political pressure to have every electricity supply company using such pollution-free products.

At the same time, every citizen will learn about lead-out-energy products.  The 5KW Wang unit is targeted for the average home.  The retail price initially is probably HK$10,000 or about USD1,300.  The expected life is 20 years.  The product guarantee life may be one to five years depending on Country.  The initial buyers may even get a guarantee that if the units fail, the Company will pay for the electricity bill from the existing electricity supply companies.

The average Hong Kong family spends HK$1,000 on its electricity and gas bills.  The return on investment is one year or less.  If the 5KW Wang electricity generator were the only product on the market, we expect every family in Hong Kong will have one (or more) before they purchase their flying saucers.

In fact, every family in the World will demand one.  It will be like the Television or the Personal Computer.  It is an essential item.  Assume that the world population is 6 billion.  The average family size is 6.  The number of Wang units could be 1 billion.  If the price is USD1,300, the market potential is USD1,300 billion for initial coverage.

We believe every family would have purchased one or more 5KW home unit before all electrical appliances have their own lead-out-energy supply.

[ltseung888]

Another academic exercise:

The question:

Can your team draft a business plan assuming that Wang Shen He wants to sell his technology for the under 10KW market to a buyer for US$1 billion?

This is a good challenge and an academic exercise for Forever Yuen and team.  She now has eight other students helping her.  Some are majoring in Economics.

The outline of the business plan is as follows:

(1) The Product under consideration
(2) The Asking Price
(3) The Terms of Sale
(4) Market Analysis
(5) Competitive Analysis
(6) Risk Analysis
(7) Expected Return
(8 ) Summary

Competitive Analysis

At the time of writing this business plan, the only announced lead-out-energy product available for sale is the EBM machine from Hungary (http://www.gammamanager.com).
They are selling large units.  They have not used the Lee-Tseung theory to explain their source of energy yet.  Their impact on the World Market is small.

Technically, the worthwhile competitors are:

(a)   The 225 HP Pulse Motor funded by Jupiter Fund Group of USA.  One slice could generate more than 20 horsepower.  This is sufficient for the average home.  However, this product is not released yet. 
(b)   The Dr. Liang IC pulsed motor.  If the motor is fixed and used as electricity generator, there will be no worry related to the angle of tilt.  This motor can generate 188 horsepower.  However, there is not much news on its continued development.
(c)   The flux change only systems from Japan.  However, this product is not released yet.

If Wang or the buyer uses the planned gift tactic, he may gain the admiration and cooperation from all Nations.  There is no need to reverse engineer or illegally copy the technology.  It is just a matter of licensing with win-win for all.  Wang or the buyer can introduce Mutual Credit concepts at the same time.

Wang or the buyer can use the technique of raising funds from the World Stock Market.  He can use an existing listed Company in Hong Kong ? e.g. the China Power New Energy (0735).  He can issue additional new shares.  Wang or the buyer can easily raise the USD1 billion if the publicity is done right.  With the additional money raised, Wang or the buyer can purchase other lead-out-energy inventions.

Funding for lead-out-energy inventors will no longer be a problem.

If I were the Company already invested in the large units for the electricity companies, I would pay Wang the additional USD1 billion so that I have the potential added home market.  With both large and small electricity generator products available for production or licensing, the Company may even be able to raise US100billion in the World Stock Market.

If I were the Hong Kong Government, I would buy the Wang technology and use it as a high technology flagship to stimulate the Hong Kong Citizens.  (The Tseung book will have more buyers.) 

Students, use your imagination on this academic exercise.  There is no right or wrong solution.  Just reveal your innovative talents.

[ltseung888]

Another academic exercise:

The question:

Can your team draft a business plan assuming that Wang Shen He wants to sell his technology for the under 10KW market to a buyer for US$1 billion?

This is a good challenge and an academic exercise for Forever Yuen and team.  She now has eight other students helping her.  Some are majoring in Economics.

The outline of the business plan is as follows:

(1) The Product under consideration
(2) The Asking Price
(3) The Terms of Sale
(4) Market Analysis
(5) Competitive Analysis
(6) Risk Analysis
(7) Expected Return
(8 ) Summary

Risk Analysis

Let us continue the academic exercise.

What are the possible risks to the investor or buyer?

(a)   Technology Risk.  The investor or buyer will not be asked to sign any contract until after the worldwide announcement and demonstration of the large electricity generators suitable for electricity supply companies.  The news coverage will be worldwide.  Dozens of reports would have come out from the many prestigious Universities and Laboratories.  The Lee-Tseung lead out theory would have been praised as the greatest scientific theory behind Newton and Einstein.  There will be zero objections from the scientific community quoting the Law of Conservation of Energy.
(b)   Engineering Risk.  One prototype will be generating electricity.  Another will be disassembled and reassembled to show how the machine works.  The contract will specify that the inventor will personally train and supervise the first group of engineers and products.  The first group of engineers can be up to 100.  The first group of products can be up to 10,000 units.  There is no question that the team will not be able to produce the products.
(c)   Risk from other lead-out-energy inventions.  This is a potential risk, as we cannot predict products not available on the market yet.  However, if the investor or buyer is closely associated with the energy sector, they will be able to use the Wang Generator before other inventions become mature.  For example, the investor or buyer might have already recovered the payment of USD1 billion from the Stock Market before the product sales reached that mark.  Or the buyer may be supplying electricity to the homes already.
(d)   Risk from existing interests.  This is unlikely as the Wang 5KW electricity generator will be behind the announcement of the larger lead-out-energy electricity generator.
(e)   Risk from mismanagement.  Wang Shen Ho is willing to sell or transfer the technology outright.  Wang admits that he has no management experience and his interest is in the laboratory.  The investor or buyer is welcome to use his own team of managers.

We feel that if the buyer is a Government or a large Company with important Government connections, it will have a much better chance.  There are many potential issues such as regulations related to supplying electricity, product safety, restriction on high technology etc.

[ltseung888]

Another academic exercise:

The question:

Can your team draft a business plan assuming that Wang Shen He wants to sell his technology for the under 10KW market to a buyer for US$1 billion?

This is a good challenge and an academic exercise for Forever Yuen and team.  She now has eight other students helping her.  Some are majoring in Economics.

The outline of the business plan is as follows:

(1) The Product under consideration
(2) The Asking Price
(3) The Terms of Sale
(4) Market Analysis
(5) Competitive Analysis
(6) Risk Analysis
(7) Expected Return
(8 ) Summary

Expected Return

Let us assume the following scenarios:

(a)   The Investor or Buyer is a large oil, coal, power supply company or similar.  Buying the Wang technology or other lead-out-energy inventions is a necessary insurance policy.  When they cannot sell their existing products, they can sell the new product.  It is a matter of survival.  If their total asset is USD100 billion or more, paying USD1 billion for insurance is worth the price.  A few of these Companies may ally together and buy the insurance.

(b)   No other lead-out-energy device enters the market for the next three years.  This is sufficient time for every home to have a home electricity generator.  Let us assume the previous figure of 1 billion units.  The total market sales at USD1,300 per unit amounts to USD1,300 billion.  The cost of production for such high volume is expected to be USD300 or less.  The potential profit is USD1,000.  The return on investment is 1,000.  If we assume a very modest figure of 10% market share, the potential profit is still USD100 billion.

(c)   The Company invests not only in the Wang lead-out-energy device but also the full range including the flying saucers.  The Company also participates in mutual credits ? helping to sell its products and benefiting the world at the same time.  If every family owns a flying saucer at the price of USD100,000, the potential market value is USD100,000 billion.

Let us assume the buyer is a Country with the aim of benefiting the entire World.  The new wealth created with this new lead-out-energy and the flying saucer easily exceed all existing wealth.  The normal financial value on return on investment is meaningless. 

(The chance of the 17 year old Forever Yuen  Company exceeding the value of Microsoft is there.)

[Devil]

Tseung, your so called business plan is stupid.  It is more for your ego than for investors or buyers.

However, you may get some non-conventional humans interested.  It is good material for your book.  The readers will laugh and admire your stupidity.