Rockport Homes
Yes when I enquired about construction costs it was due to the Rockport Homes report and the fact that when I heard their plans I was initially excited to plunk down cash and invest in this company, either by way of buying a franchise or buying shares in the IPO.
But there are just way to many RED flags for me to either invest or be involved in anyway with this company and here is why??
1) This company has yet to build 50 homes using this method let alone 5000 in chile, 20 000 in the Dominican Republic or 40 000 in Mexico. Plus they have no firm contracts as of yet.
2) Quote from their website
"With secured rights to a modular concrete building technology developed by TWiC Housing Corporation, Rockport plans to establish itself in the housing construction market."
They have no track record using this technology.
3) This technology is claimed to be in use since 1969 and they also claim that it is patented technology. The patent was first registered in January 22, 1997. (see link to the canadian patent office). The Patent would normally expire 20 years after it was first registered.
The problem here is that patent protection starts from the first time you commercially use your invention or the date you registered your Patent whichever comes first.
At ther website they stated
"His (Harry Gordan's) ideas sat on the back burner for several years but resurfaced in 1976. He formed a company called Formete Structures and built a new plant. Pieter Zeeman, owner of Surrey Iron Works, joined him. Together, using a new and different steel mold and an advanced process of spraying faster setting concrete, they proved their concept by building a six storey apartment building. When the modules were complete, the entire structure was erected in seven days, something unheard of in the construction industry. Unfortunately, sale of the plant property forced them to disassemble their manufacturing plant. Discouraged, Harry and Pieter were forced to evaluate the process yet again, and production lay dormant."
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This means that their so called patented process was first used commercially in 1976, 21 years before they decided to patent the process. I doubt if their patent is valid after being in the public domain for over 21 years.
4) At their website they claim,
But it wasn't until the involvement of Canadian Rockport Homes, that the TWiC process took the next step to realizing its global potential.
It seems to that this company is taking an old idea and trying to repackage it in order to get listed on NASDAQ. There is nothing wrong with that as long as investors are fully aware of whats going on.
5) They hired a high profile ringer "Nelson Riis" to promote the company. I have no doubts that Nelson Riis is an honourable guy but he is only with the company because he lost his seat in the Canadian Parliament in last years election after serving for nearly 20 years, he was a left-wing NDP socialist.
6) Has anyone stopped to think what building 20 000 homes quickly would do to the local real estate market in the Dominican Republic?? Local real estate prices would be depressed further than they already are and would remain depressed for many years. What Nelson Riis fails to understand is that Supply vs Demand equals the local real estate price. Is this a building project or a social engineering experiment???
7) Using the assumption that the average cost of $8000 per home X 65 000 homes. They assume they will have income of over half billion dollars within a couple of years. A pretty BIG assumption.
IN SUMMARY
I like the concept of helping people obtain affordable housing, everyone deserves a house that they can call a HOME.
BUT
The hype surrounding Rockport Homes is to promote the stock price of the initial IPO that is coming out in a couple of months.
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