Jay Taylor of Hard Money Advisors Initiates Coverage on dynaCERT Inc. with Buy Recommendation and $1/Share Price Target

NEW YORK, NY / ACCESSWIRE / December 18, 2015 / dynaCERT Inc. (TSX VENTURE:DYA) (OTC:DYFSF - News) is the subject of a newly released advisory from technology analyst Jay Taylor of Hard Money Advisors Inc. dynaCERT Inc. designs, engineers, manufactures, tests, distributes, and installs transportable hydrogen generator aftermarket products that are proven to reduce toxic gasses within the emissions by 35% to 40% all while improving fuel economy of ~15%. Mr. Taylor believes the market potential for this company is "mindboggling" and that 3rd-party validation, on now, will lead to a dramatic increase in demand and that a breakout in share price is imminent.

Technology analyst Jay Taylor of Hard Money Advisors released an advisory to his paid Gold & Technology Newsletter subscriber base on the merits of establishing a long position in DYA.V and recommended with a $1.00/share price target (DYA.V currently is currently trading under 10 cents). Mr. Taylor has a business MBA in Finance & Investment, has decades of successful technology sector analysis under his belt, and is known for being reserved in his advice.

Full copy of Mr. Taylor's advisory along with chart and additional insight may be viewed starting at http://sectornewswire.com/DYAJayTaylor-Dec-2015.pdf online.

Excerpts from Jay Taylor's advisory on DynaCERT Inc.:

Overview: While Tesla may be getting all the fanfare with a multibillion dollar market cap, dynaCERT is one tiny market cap company with a technology that is by far more energy efficient and green than the much ballyhooed electric Tesla car. I feel confident in saying that for two reasons: First, a trial on dynaCERT's HydraGen Technology on some 200 trucks, most of which were Pepsi trucks in the Detroit area, has proven the technology's ability to reduce energy consumption by between 10% and 20% while reducing toxic gases within the carbon emissions by 35% to 40%; secondly, dynaCERT's HydraGen car does not consume energy to save energy as Tesla's technology does, which relies on carbon-based power generation, much of which relies on the dirtiest of fuels—low-quality coal, especially in rapidly growing, heavily populated countries like China and India.

The market potential for this company is mindboggling. While the company's first application of its technology has been for long-haul diesel trucks, we could see absolutely explosive growth in the auto sector as dynaCERT is now testing the dynaCERT technology on a Volkswagen model with the view to helping that company and others urgently overcome the inadequacies of existing technology in meeting emission standards without reducing mileage efficiency.

The auto industry is a monster. But there are additional applications of massive scale, such as oceangoing vessels, train engines, and power generation. So the upside for this company is absolutely astounding. What the company has needed but until now lacked is third-party validation of its trial results. Now that it has ironed out that issue, I believe the company is in a position to begin meeting a pressing energy need for the global economy. Both validation and orders are now being revealed for the trucking industry with a significant shipment scheduled to take place in January 2016. While this is a speculative story at this stage, I believe the table is set for a massive upside breakout in dynaCERT's share price. I am suggesting that a target price of $1.00 over the next 12 months is reasonable and attainable, assuming management can execute its business plan.

The Technology:

DynaCERT's technology is centered around providing a hydrogen-oxygen mixture (H2/O2), generated on demand through electrolysis, for combustion engines. The company acquired the intellectual property including all patents and patents pending for the technology behind HydraGenTM.

The benefits of this additive have been investigated by several researchers. Here are a few of the established findings by the scientific community:

- The flame speed of hydrogen is nine times faster than the flame speed of diesel, burning diesel in the presence of hydrogen will result in overall faster and more complete combustion. This will result in higher peak pressure closer to the Top dead centre (TDC) and therefore, will produce a higher effective pressure to do work.

- Even a small amount of H2/O2 injected into the air intake to enhance diesel combustion decreases the brake specific fuel consumption (bsfc) regardless of the level of load.

- The induction of H2/O2 contains oxygen; as a result, the increase in the air-fuel ratio improves the combustion resulting in lower fuel consumption and better efficiency. (Fig 6)

- Hydrocarbons and CO2 are reduced, due to the absence of carbon in hydrogen fuel and also due to better combustion of diesel fuel with the aid of hydrogen which has a higher flame speed. (Fig 8 and Fig 10)

- Although CO values for neat diesel operation is relatively lower, by inducting H2/O2 into diesel the CO amount is further reduced.

Truck Trial Results:

In the Pepsi program dynaCERT Inc. installed 187 HydraGen(TM) units. To date they have driven over 18 million miles with 95% uptime, and have documented fuel savings of over 15%.

The bottom line: 4,200 hundred gallons of fuel saved per year per truck, on average. This represents >$3 million in fuel costs alone.
Table 1. (Left [See Newsletter PDF URL]) -- This is a selection of the Pepsi trucks whose mileage was documented and benchmarked to the industry average. DYA.V technology showed a clear 10-20% increase in fuel efficiency.

At those rates, and with its prices, dynaCERT can provide the typical truck owner with a less-than-one-year payback period on one of its retrofitted units. Long-haul trucks that operate continuously will use upwards of (20 or 30 thousand) gallons of fuel per year and could potentially experience a payback on investment (based on an installed cost near US$10,000) within as little as 4 months.

Good Results, But Why No Sales?:

You may wonder, if dynaCERT's carbon emission reduction fuel-saving technology is so good, why this Toronto-based company has reported a measly C$12,898 in sales and a gross profit of only C$9,139 over the first nine months of 2015.

Well, it looks now like sales will start to kick in next month with the company reportedly in the process of filling an order for 50 HydraGenTM units and building an inventory of another 100 units. Here's the story.

Over the last few years DYA.V has worked with some of the largest trucking fleets in the world under the understanding that with third-party validation of a minimum 8% fuel savings they will commence outfitting their fleet with dynaCERT's HydraGen units. For example, it worked with Pepsi in a 200-truck program out of Detroit. There has been no disagreement that dynaCERT's technology accomplished 8%+ fuel-savings. The problem for an undercapitalized company has been the time and expense required to secure third-party validation. Thankfully, with computer power the collection of data pulled directly from the trucks has been sent to an accredited third-party source. So it is now a confirmed fact that rigorous yearlong multi-phase field testing has validated enormous reductions in toxic emissions combined with impressive, increased fuel efficiency. Thus it appears with the first of the company's new generation of units to hit the street soon, that official third-party accreditation is expected to follow near term.

The Economics of HydraGens:

From the company's Web site, here [See Newsletter PDF URL] is a pro-forma projection of how the company envisions the economics of its HydraGen business for trucks only.

The trucking industry accounts for 12.8% of all fuel purchased in the U.S., according to www.Truckinfo.net. There are 192,000 trucks sold annually in the U.S. alone. There are an estimated 15.5 million trucks operating in the U.S. and some 10 million trucks operating worldwide. The units are priced to allow a truck owner to enjoy a return on his HydraGen investment within one year, which I understand is possible even given current low fuel costs. In other words, this application is enormous. Unless there is a more economic alternative to the HydraGenTM technology, if dynaCERT is successful in marketing this story to the industry and assuming it is able to raise the capital required to build inventory and meet other working capital needs. To the extent operations are profitable out of the gate, the company should be able to build some of its early working capital organically.

The proforma numbers above extend to up to 60,000 units per year. The company has its components manufactured and those numbers are built into the proforma above. DynaCERT then assembles the units and tests the units before shipping. It is my understanding that the company currently has a facility sufficiently large to handle up to 2,000 units per month, or 24,000 per year. However, there are other facilities reportedly available in the Toronto area in the event management outgrows its current facility. You can play with the math, but obviously, if the proforma numbers above are valid and if the company can generate sales along those lines, the truck business alone has the potential to drive these shares much, much higher.

Other Massive Markets:

Power Generation – Management has begun testing its technology for power units in the Dominican Republic where reliance is mostly on costly diesel fuel. Specifically it has engineered the HydraGenTM unit for large stationary power generation combustion engines that require hydrogen at a high rate, up to 300 L/minute. These units will sell for around $500,000 each. With energy savings of just 5%, these units can provide a return on investment to the buyer in just eight months. Following are pro-forma projections [See Newsletter PDF URL] from the company for the HydraGenTM units to be used in power generation.

Again, assuming these pro-forma numbers hold up with marketing success, the prospects for earnings from this sector look extremely promising. In addition to a company that has been undercapitalized, another constraint in moving this segment of the company's business forward more aggressively thus far is related in part to geography. The company's first tests have been carried out in the Dominican Republic. Given the tropical climate and limited power capacity in that country, the time allotted to test is limited to a couple of the cooler winter months when electricity demand for air conditioning is limited.

Clearly these larger units have potential application wherever power grids are not available, such as at mining projects in remote locations. A couple of the most promising applications appear to be for rail and oceangoing vessels. What adds significantly to the economics especially for shipping is a reduction in the opportunity cost of needing to haul less fuel when the HydraGenTM are used. Transatlantic ships, for example, need to haul a huge amount of fuel just to be able to cross the ocean. Reducing the amount of fuel requirements means more capacity to haul more profit-generating cargo instead.

What About the Auto Industry?:

With the revelation that Volkswagen has cheated on its emission standards, a door into this enormous sector for dynaCERT's technology may well be opening up. The problem the automakers have is that when they comply with the emissions standards, it cuts down on the mileage. That's because typical emission control solutions treat engine exhaust gases after the burn, at the expense of loss of power and increased fuel consumption. On the other hand, dynaCERT's HydraGenTM improves combustion resulting in a cleaner burn that produces increased torque, improved fuel savings, fewer oil changes, less carbon buildup in the engine, and significantly reduced toxic emissions. In other words, HydraGenTM not only reduces the emissions by 35% to 40%, but also increases mileage, enhances performance, and lowers maintenance costs. I could be missing something here, but it seems to me this is a must-have technology for the automobile manufacturers.

Given the performance of its technology, management believes it has a winning solution for the gigantic car industry. So, on Dec. 3, the company announced it has developed a compact version of the HydraGen(TM) unit for use on diesel-powered cars and light trucks. This compact unit (smaller than a cereal box) is based on the patent-pending HydraGen(TM) technology, and the development effort is a direct result of the pressing need by the automotive industry for a permanent, at-the-source solution to reduce carbon emissions in diesel engines while improving fuel consumption.

The first of the new compact units is being installed on a 2.0 liter turbo diesel Volkswagen Passat (2013 model year) import sedan for testing. This test is being performed within the dynaCERT's own facility, after which the company plans to submit the data to an outside third party for validation. This testing is done independent of any automobile manufacturer and financed wholly through internal R&D budgets. Depending on the results obtained, further long-term, large-scale testing will require participation from one or more diesel engine manufacturer and automobile manufacturer.

THE BOTTOM LINE:

It appears to me as though dynaCERT has cleared the most significant hurdle that has kept it from marketing its outstanding HydraGenTM technology, first to the trucking industry for which a considerable amount of data evidences its efficacy. That hurdle was third-party validation. With the use of computer technology attached to each vehicle, data has been and will continue to be gathered at low cost making possible third party verification of the veracity of the HydraGenTM technology.

The pro-forma numbers shown above for the trucking and power-generating industries speak for themselves. Of course these are only pro-forma numbers, and your editor has been in business long enough to know it's easy to put numbers together on a spread sheet. It's quite a lot more difficult to execute a business plan to turn those numbers into projected profits. The biggest challenge I see is the company's current size and market cap. If management can successfully market this company's technology, not only to the users, but also to Wall Street and Bay Street, dynaCERT should have a glorious future ahead of itself because it provides energy savings at a time when the global economy more than ever needs to find ways to increase profit margins and at a time when environmental issues are of increasing importance, even to those like myself who are skeptical of claims that humans are the cause of global warming. One need only to view TV newscasts showing conditions in Beijing to know air pollution is a major health threat.

Given this company's technology and that the most important hurdle has now been cleared, buying this stock at its current price of under US$0.10 is a speculative "no brainer." If the company can begin to roll out 2,000 + unit sales per year, starting over the next two years, I believe dynaCERT will be on its way to solving some major issues facing humanity, and in the process generate very substantial capital gains for those who buy these shares at their current price. The biggest risk may be the company's ability to raise capital at a time when the global economy is apparently in decline. Assuming that risk is overcome and adequate capital is raised and assuming management can assemble a competent marketing team, there is no reason dynaCERT can't become a rapidly growing "green" company. Given the economics apparent in dynaCERT's business combined with the need for this technology on a global basis, the prospects for success appear very good. On that basis, I have set a 12-month price target of $1.00 per share.

Full copy of Mr. Taylor's advisory along with chart and additional insight may be viewed starting at http://sectornewswire.com/DYAJayTaylor-Dec-2015.pdf online.

This release may contain forward-looking statements regarding future events that involve risk and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual events or results. Articles, excerpts, commentary and reviews herein are for information purposes and are not solicitations to buy or sell any of the securities mentioned. Readers are referred to the terms of use, disclaimer and disclosure located at the above referenced URL(s).

Contact information:

Fredrick William, BA Ec., Managing Director
Market Equities Research Group
f.william@marketequitiesresearch.com

SOURCE: dynaCERT Inc.