CFU 0.00% 0.4¢ ceramic fuel cells limited

0.099 is not what we want to see, page-21

  1. 1,340 Posts.
    lightbulb Created with Sketch. 10
    I'm constantly surprised by the expectations placed on this stock.

    In particular, I think it was Indi who said its more risky in 2012 than 2010.

    I argue that it depends on what your "risk" is.

    If the risk is that the share price will give El Capo a boner (no disrespect intended El Capo, you know you'll love it if your Crystal Balls perform again), then you may be right. It may drop below 8c.

    I would also argue that sellers at 9.6c, or lower (in the absence of bad news) are panicing.

    For me, the risk is that there is some problem with BlueGens that mean that units cannot or will not be sold.

    For me the risk is that the units leak gas, or break after 3 years, or become completely inefficient after 5.

    For me the risk is that the components in the fuel cells become unaffordable or that a competitor is backed by the retailer generators.

    But I see a technology that becomes less risky every day it is operated. I see plans to build units cheaper and secure supplies. And I see gradual, baby step progress in forming major partnerships with retailer generators.

    For me, that represents significant de-risking of the company. Very Very significant de-risking.

    There will be or has been an ideal time to buy. At present, the only buy I've made that was completely worth it was the 5.1c initial purchase. Obviously, I could have done better buying at 9.6c than 10.8c, but I don't really care because the participation of holders at 10.8c is what contributes to the de-risking of the projects.

    Fingers crossed that was the last dilution. I guess we'll know sometime in the middle or late next year.

    For me, financing is the scariest thing right now, because of the overall economic climate.

    However, if the technology continues to prove itself and if the cooperation with generator-retailers continues to proceed, however slowly, then I do believe that CFU will be able to raise funds in the short, middle and long term.
 
watchlist Created with Sketch. Add CFU (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.