Goldman, Roedel & Milano Capital Services's Publications

• Oil Prospecting, Volkmar Hable's Blog on Bigsight April, 2011 Oil prospecting in the early days of the industry required a great deal of luck and speculation, forcing many petroleum companies to use hunches and such indicators as oil residue in the soil to determine where they would place an oil well. However, today’s oil exploration requires the expertise of geoscientists who utilize a number of factors in determining the best locations and methods for drilling. Geosciences became a critical component of oil exploration after World War I, when engineers employed mechanisms that determined indicators of oil location, such as changes in gravity and magnetic field. One major tool utilized in the prospecting of oil is the correlation between salt domes and petroleum deposits. This technique involved the utilization of balance and torsion instruments to measure the distribution of masses in the earth’s crust. Lighter mass often indicates the presence of petroleum. With this in mind, geoscientists also employ pendulums, because the oscillation of a pendulum speeds up and slows down due to gravitational changes. Oil deposits are located when the pull of a mass is balanced against the elastic force of an oil deposit. Today, gravimeters are used on land, sea, and air to aid in oil exploration. Most discoveries of oil are made in nonmagnetic, sedimentary rock. Accordingly, geoscientists also consider magnetic surveys in their oil exploration research, because it allows them to rule out unlikely areas and focus on formations that might contain oil.

• Trends in Pharmaceuticals and the Life Sciences May, 2011 by Volkmar Hable As CEO of the Samarium Group, I oversee a team that undertakes collaborative research and funding of start-up ventures, as well as established companies in need of financing for specific projects. Our focus areas are sectors offering dynamic growth and substantial return on investment, such as information technology (IT), manufacturing, logistics, science, health care, and medicine. Life sciences companies, encompassing drugs, devices, biologics, and diagnostics sectors, generate a tremendous innovation capacity each year. This leads to increased efficiencies and profitability as well as healthier human lives around the globe. One key scientific discovery this past decade involves MicroRNAs (miRNAs), which are short ribonucleic acid (RNA) molecules that regulate gene expression. The aberrant expression of miRNAs is thought to cause numerous conditions such as viral infections, heart disease, and cancer. This is because miRNAs are intimately involved in regulating metabolism, viral replication, immune response, stem cell differentiation, cell-cycle control, and human development. The market for miRNA components is expected to reach some $12 billion by 2015, including over $10 billion in therapeutic products alone. This represents an excellent expansion opportunity for life sciences firms pursuing drug development, clinical testing, and delivery mechanisms. The biopharmaceutical industry is now moving in a positive direction, after a string of substandard years in which nearly 100 public companies went under and overall employment decreased by tens of thousands. The year 2010 marked a slight improvement over 2009, with increases in initial public offerings (IPOs) and a growing stream of venture capital funding. Notably, the FDA approved biotech salmon meant for human consumption, marking the first time that genetically engineered animals have been approved as being safe for food use. This will certainly open up new revenue streams and funding incentives for biopharmaceutical research. Pointing to the future of the pharmaceutical industry, the Indian market looks promising as a high-growth generator. The Indian drug market is expected to grow by 163 percent in the next decade, far outpacing the expected growth of 1.4 percent in North America. This underscores the importance of drug companies expanding into Asian markets for continued profitability. In addition, the lapse of patents on 18 of the 20 global leading pharmaceuticals from 2011 to 2016 will enable low-cost manufacturing to shift to India and other Asian countries. This, coupled with rising research and development (R&D) costs in the West, signals a need for coordinated international pharmaceutical strategies. It also provides opportunities for smart investment in low-cost drug manufacturers that will enjoy increased market share in coming years.

• Volkmar Hable of Samarium Group on the Storage of Energy from Renewable Resources, Volkmar Hable July, 2011 Volkmar Hable serves as the President and Chief Executive Officer of Samarium Group, an investment firm that focuses on innovative technology-based businesses. One of Samarium Group’s key focuses is renewable resources, and one of the key challenges in the sector is storing excess energy for future use. He explains some of the research being done in that area. Renewable energy sources are becoming increasingly larger contributors to our global energy needs, with many countries ramping up production of wind and solar device installations. Similarly, the number of companies focusing on technology to meet the needs of the renewable energy sector is growing substantially. One of the major challenges faced in depending on renewable energy sources is the variability of supply. The wind does not always blow, and the sun does not always shine, yet energy is required continuously and reliably in order to meet the needs of society. Researchers are approaching this issue in a variety of ways. Large-scale battery arrays form one possibility for the resolution of this issue. Research into battery technologies is expanding at a rapid pace, not only to meet the needs of the power generation industry, but also to support the growth in the production of electric vehicles. Efficient, high-capacity arrays of batteries attached to power generation facilities allow energy generated at peak production times to be stored for later. Another approach being considered by certain heliostatic solar power plants is energy storage in molten salt. Heliostatic power plants use a computer-controlled array of mirrors to focus the energy from the sun onto a single point, usually a tower. Located in deserts, these power plants can generate large quantities of heat on a regular basis. This heat then creates steam, which runs a turbine. However, in a molten salt instrument, the heat is instead directed toward a large supply of salt. As this salt heats up, it releases enough energy to run a steam turbine. Yet the salt deposit holds a vast quantity of heat energy and continues to turn the turbine during the night and when clouds block the sun. As a result, molten salt can serve as a reliable solar battery. Molten salt may not be the final answer to all of our energy problems, but it is representative of the increase in innovation we are experiencing in the area of renewal energy storage. Eventually, technological solutions such as these will help to transform renewable energy sources into mainstays of the electrical supply system.

• Volkmar Hable on the Basics of Mountain Climbing, Part 1, Goldman, Roedel & Milano Capital Services! October, 2011 by Volkmar Hable As an avid outdoorsman and mountain climber, I have climbed to some of the highest peaks on earth, including Mount Everest. Many of my friends and colleagues ask me for climbing tips, so I decided to write this article detailing some of the most helpful advice I utilize in my own expeditions. Many novice climbers spend thousands of dollars investing in climbing gear without investing in their health. First and foremost, mountain climbing requires top-notch physical stamina. As you climb to higher elevations, oxygen levels will become thin. Because of this, I advise climbing slowly, making your way up at a pace comfortable for you. Remember, mountain climbing is not a race. Moving too quickly can leave you short of breath, a condition only exacerbated in high altitudes. Next, research and visit stores in your area that specialize in climbing supplies. Talk to them about the area in which you intend to climb and get their recommendations for gear. Not all gear is created equal; some types of shoes, for example, are more suitable for one type of mountain than another. Also, take care not to weigh yourself down with equipment. Work on your strength and stamina so that you can carry the gear you need, but do not so encumber yourself that climbing becomes difficult. In many instances, you will need to rely on your dexterity more than pure physical strength. Pay close attention to the weather forecasts in the area where you intend to climb. Invest in gear and clothing that complement predicted conditions, and bring along an extra set of clothing in case your garb becomes damp. On the subject of moisture, remember to stay hydrated as you climb. Pack two full bottles of water before you start out, and fill them when you can. Water sources often become scarce as you ascend, so never miss an opportunity to replenish your supply.

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