Obviously AEB's claim of being able to produce algae oil at half the price of the equivalent in crude oil is completely incompatible with the report's claim of economically viable production being at least a decade away.
Not that I'm suggesting you believe everything journalists tell you of course, but it's not hard to put two and two together.
If you believe that economic algae oil is at least 10 years away you'd need rocks in your head to invest in it now. I assume most AEB holders don't believe that (no, I'm not convinced anyone can be certain of it; it could be sooner, it may be much longer or never happen). Keep in mind that the journalist could just as likely have put a positive spin on things and said that algae oil was going to revolutionise the world's energy industry in the very near future, and I'm sure the level of belief around here would be very high. As with all other company discussions, AEB's primarily revolves around believing and disbelieving information based on what is good for the company rather than what is most obviously or likely to be correct.
I do believe that economic algae oil or any similar form of biofuel is far enough into the future to make investing in it now to be great... for decreasing your tax bill.
AEB Price at posting:
24.0¢ Sentiment: Sell Disclosure: Not Held
