AEB 0.00% $2.57 affinity energy and health limited

Thanks for your reply, Striderb. Tretch has gone someway to...

  1. 104 Posts.
    Thanks for your reply, Striderb. Tretch has gone someway to answering the similarity between AEB & LYC. But my thought was that many companies that come to the market aren't selling products, but ideas, eg a mineral resource to be exploited, a better way to grow fish (CSS), or, in AEB's case, the thought that you can get jet fuel out of algae. In many cases, the idea gets a following, the sp rises, and the stags get out at a profit. AEB was at 63c twelve months after listing.
    But the closer the company gets to production, the sp doesn't rise, but in fact falls. This was the comparison with Linus which having put plant in place, got licences, seen off numerous court challenges, but now on the verge of making money, finds its sp at a multi year low.
    AEB seems to be following in the same track. Having established 2 plants, having signed several MOUs with more in the pipe line, having proved its technology, the sp continually falls.
    Two other examples come to mind. Tissue therapies (TIS)is now closer than ever to getting its ulcer healing ointment approved, but even before the latest set back, it was trading at its year's low of 25c. With the set back, it is now down to 16c.
    On a brighter note, and showing that the catalyst for turning a stock around isn't ideas but a positive cash flow, is Somnomed. It is now 50% higher than when it was implementing a good idea and merging with other companies and making their show a success.
    You can call it Gorsen's Theorem, if you like (lol), which states that a "concept" stock will continue to decline from a given point until it can prove it can make a buck.
    Therefore, applying said theorem, AEB will continue a long decline until it can make money in 2 - 3 years time - and I'm not selling.
    The "two and possibly three" plants I referred to are Manildra, Holcim Lanka, and Shandong, although clearly there is product being made at Atlanta. Manildra is up and running, but unlikely to be making money since a 200 module plant is seen as being economically viable and I am postulating that a 5, or is that still 4, module plant is less likely to be so, and, in fact, probably making a loss.
    Holcim Lanka, as far as I know, will be on the scale that Manildra is at present but is not operating atm. Both plants will be expanded once SGS complete there work - assuming they give a good report.
    Shandong are looking to build one module, but by all accounts, that hasn't taken off yet.
    Concerning the Atlanta upgrade last year, where the plant was quadrupled in size, and we haven't seen a single module emerge from there since, It is my understanding that little of it is for production. Most of it is for storage, more space for lab type stuff, but little for production.
    I hope that helps. Gorsen
    Obviously there are exceptions.
 
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