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The stator has one charge coil.----Used to fire top and bottom cylinder.-----Stator has one sensor coil.----Used to fire the top and bottom cylinder.----More trouble shooting is required.----Look for a broken wire / bad plug in somewhere.

Many dealer now get rid of older 2 stroke " dead " motors.-----Costs too much to remove / inspect parts.----Some trade them for a case of cold suds.-----No call / money to be made with old parts.-----Lots of coins can be made with service work on newer 4 stroke products.----Doubt you will get...

Most outboards drain all water out sitting on the trailer like that.-----Make sure no water is in the gear oil.

So , did you find the marks ?

Correct

As indicated in post #18 , a less than experienced individual has been into this motor.----Yes the bearing is cracked.-----I have lots of these as parts motors.-----I would not hesitate to take this motor apart for complete inspection / block replacement.!!!

Replace the roller.----Test run.

Find black / yellow stripe wire.-----Pull plug apart and test run ??

Rotor----Is convinced he has a Mercruiser.-----Had someone phone me years ago about advice on a Mercruiser.----Did not take long to figure out he had an OMC electric shift that had been painted black.

Your flywheel does have timing marks !!----Look for them.----Throttle at idle.-----Put piston to the top.-----Look for a mark / notch near those 2 vertical marks on magneto plate.

Mercruiser might be a 1963-1966 model with 153 cube GM motor.-----Finding parts takes time.

Take it back to the previous owner.----Get the tutorial on how to start this motor !!-----Then install a new water pump impeller and go fishing.

Have to ask.----Explain your starting procedure.---Are you giving the primer ( lower front cowling ) a few pumps ??

Are you pushing the key in while cranking it over ?----Operating the manual primer correctly for cold starting.

The tell tale is an indicator for the water pump.-----It does NOT indicate good circulation / proper cooling of this motor.----Post the compression test numbers here.----These motors are famous for broken piston rings.------Then some can offer further tips on what to check.-----Like water...

The issue is with the length of the spline and the sealing arrangement for the spline.----If you study it you can make changes to make it work.

There is an issue with the kill circuit.-----Black / yellow stripe wire.-----I can not see your boat.----Up to you to dig into this.

Screwdriver in the plug hole is one way to check the key.----You can not find a sheared key by just removing the nut.-----You can not find a sheared key with a timing light either !

Timing on these motors does not go out of adjustment.-----Unless of course someone molests the linkages.-----Make sure throttle plate is closed at idle.-----Make sure throttle plate does not open too early.

Are there 2 ---" M "---terminals on your ignition switch ?