Good morning one and all. As is usually the case with our morning editions of the newsletter, some news broke just a few moments ago and it can't wait. This could turn into quite a catalyst for the Featured Stock in focus today, and letting you know about it after the close may be too late.
Let's just cut to the chase - Double Crown Resources (DDCC) got a whole lot more interesting today.
As a reminder, Double Crown Resources is a two-pronged company. One arm is a mining operation, which for the most part only becomes active when it's got a sales agreement in place. It's got access to gold, nickel, and platinum, but it's also got access to sand, iron, and even guar gum. The other arm of DDCC, however, is the exciting one in that it has the most upside potential because it could be highly disruptive to the shipping/transportation industry.
The nearby picture is a Translock2 ("Translock-Squared") container. It should look vaguely familiar to most of you. It's essentially an intermodal container in terms of size and shape, but mechanically is a delivery and dispensing platform for drybulk goods. The design allows commodities like sand, iron ore, fertilizer or livestock feed to be moved with all the flexibility of intermodal transportation, but without any of the headache of aggregating and splitting up those goods to get them properly shipped to their final destination. With Translock2, drybulk purchases are packaged up by the seller at the supply source, and then delivered -- just as ordered -- all the way to the buyer's site in the container. Easy peasy.
It's game-changing in a lot of ways. One of those ways is simply because an intermodal container ship can replace the big drybulk cargo ships that sport massive hulls by using these containers. The Translock2 system also cuts out the middleman, creating more fiscal efficiency.
To answer the next question, yes, there's a patent on the system. It was the awarding of the patent, in fact, that kicked off our coverage of Double Crown Resources back on May 10th.
There was a small piece of that press release we should have also made a better point of highlighting: "Double Crown management plans to leverage its success with the U.S. Patent and Trademark Office to quickly secure additional patent rights in various other countries, for example using Patent Prosecution Highway (PPH) agreements." Between that, the May 17th follow-up news release that flat-out said more related patents were on the way, and just what we know about the company, today's news should have come as no real surprise.
Long story made short, DDCC just confirmed something we suspected, but could not confirm -- its ultimate goal is to license the platform to container makers, rather than try and make them all itself.
It's the right move in all ways. Making 20-foot container boxes is not only labor-intensive, it requires a lot of space as well as upfront capital. Conversely, licensing revenue is high-margin, easy money, and doesn't require any real upfront capital.
We suspected this was going to be the case, but now we know for sure.
And make no mistake -- once Double Crown has all of its current and pending patents in place and then starts to demonstrate the value of these systems, the industry is going to go wild. And, with all of those patents in place that cover everything from the concept to the mechanics of how the dispenser work to different containers for different commodities, there's no way any manufacturer will be able to copycat it.
As for the market, that's tricky to pin down because Translock2 creates a whole new market at the intersection of drybulk vessels and intermodal containers. There is some perspective on the scope of the market though. Namely, we know approximately $30 billion is spent every year delivering drybulk goods. From a sheer tonnage perspective, about 4 billion tons of drybulk goods were shipped by sea last year; much of that tonnage could have easily been shipped in Translock2 containers. A small sliver of that market would be a windfall for Double Crown Resources.
In retrospect, last week's pre-Brexit strength from DDCC now makes a lot of sense.
We talked about it a little on Friday, pointing out how Double Crown Resources shares were unusually bullish in the absence of news. As we suspected then, news was on the way; there are never really any secrets on Wall Street. Thing is, now that the news has become fully public, it could really light a fire under the stock. This company's market cap is a mere $6.4 million, which means even just a little licensing revenue could be a huge deal for shareholders. Traders will put two and two together pretty quickly.
And as we said yesterday, this marketwide lull in the shadow of the Brexit decision is the time to step into stocks of companies you've had your eye on for a while but were waiting for the right time to buy. You may not get another chance like this for a long time, and maybe never again for Double Crown now that it's long-term business plan has been clarified... it's all about licensing its intellectual property. I wouldn't tarry if you want in.
Here's our initial look if DDCC is all new to you, and here's the press release from this morning. This is a defining bullish moment.
Double Crown Resources to Accelerate Marketing and Maximize Assets by Licensing Advanced Intermodal Transport System to Large Container Manufacturers and Global Shipping Operators
Multiple Patenting Efforts Will Secure Exclusive Marketing Rights
HENDERSON, NV, June 28, 2016 (GLOBE NEWSWIRE) -- Double Crown Resources, Inc. (DDCC) is currently moving forward with wide ranging plans for the commercial marketing of the interlocking, intermodal bulk commodity transport system called Translock² (Translock Squared). After recently receiving approval notification from The U.S. Patent and Trademark Office for the Translock² system, the management of Double Crown has determined that the best course of action at this time will be to employ a multi-patent strategy to secure all of the key design features on Translock² while simultaneously engaging in a major new marketing effort with some of the world's largest transport container manufacturers and global shipping operators.
Double Crown Resources has now filed a continuation patent application with the U.S. Patent and Trademark Office for multiple additional patents on the Translock² transport system. The company's new marketing plan will leverage the multi-patent position and utilize the assets of the patents in licensing this advanced and unique new technology both domestically and internationally. Offering licensing rights to the multi-patent Translock² system will allow Double Crown to align with some of the largest industry names in container manufacturing and shipping for the quickest route to commercial employment of Translock² units and major revenue generation for the company.
Chairman & CEO Jerold S. Drew stated, "Our Double Crown Resources team has produced the most important new development in bulk commodity transport today. With the primary patent approval we have already received, and the multiple additional patent features just filed on, we are now ready to take this unmatched interlocking container system to the world markets. Our President, Allen E. Lopez is currently engaged in direct marketing efforts for Translock² licensing contracts with some of the largest and most well-known companies in the commodity transport industry. We will make further announcements on new marketing developments as they occur."
About Double Crown Resources, Inc.
Double Crown Resources, Inc., is a publicly traded company in the natural resources industry. In addition to our minerals and global commodities supply business, we market the patent-pending, multi-advantage container system called Translock² (Translock Squared). This system is designed for highly efficient, economical and environmentally friendly shipment of aggregate commodities. Additionally, we hold a 100% interest in the Bateman gold and nickel prospect near Thunder Bay, Ontario, Canada. Double Crown Resources, Inc., originally founded in 2006, is based in Henderson, NV with marketing offices in Houston, TX.
Neither this press release nor any related calls or discussions constitutes an offer to sell, or the solicitation of an offer to buy, any securities.
Forward-Looking Statements
You should not place undue reliance on forward-looking statements in this press release. This press release contains forward-looking statements that involve risks and uncertainties. Words such as "will," "anticipates," "believes," "plans," "goal," "expects," "future," "intends," and similar expressions are used to identify these forward-looking statements. Such forward-looking statements include risks and uncertainties, and there are important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors, risks and uncertainties are discussed in the Company's annual report on Form 10-K for the year ended December 31, 2014 as updated from time to time in our filings with the Securities and Exchange Commission. The Company is not responsible for updating the information contained in this press release beyond the published date, or for changes made to this document by wire services or Internet services. For further information about Double Crown Resources, Inc., please refer to its website at http://www.doublecrownresources.com.
Contact:
Double Crown Resources, Inc.
Jerold S. Drew, CEO & Chairman of the Board
10120 S. Eastern Ave. Suite 200
Henderson, Nevada 89052
Phone: (707) 961-6016
Email: info@doublecrownresources.com