There are many price driving events I can see that could benefit a company like AEB because of its unique status. It is in a growth market (excuse pun) and is said to be superior (see company website quoting recent report into algal fuels) to other algal fuel companies around the globe. So we will have a highly sort after topical product, are front of the pack and have markets (at least in Europe) that would be prepared to pay a premium for our product. We are said to be able to produce fuel at a price that doesn't need a premium paid to make a good profit. There are few shares on public issue, (none of the director stock has become available i.e. been sold), so any price driving news like Lufthansa stumping up the cash and plant building being announced, off take agreements, investments by majors, off takes with western militaries etc could really see the stock jump IMO. Its an unusual stock and hard to quantify but I certainly prefer to be front of the pack including big oil that are putting serious money into this sector of bio fuels. I think being a fledgling tech company the market sees that while there is huge upside there is still risk until we are actually producing commercial quantities of fuel so there is risk built into the current SP. Each step that further de risks our progress will see SP appreciation IMO. This will come in some smaller and some larger steps and there will be some sideways and some backward steps too along the way. Like all share market investments its a risk reward balance, one I am prepared to take but not in denial of the risk any stock including ours has involved.
Have a happy easter, eat more fish than you do chocolate and you will feel the better for it next week!
Tretch
AEB Price at posting:
24.5¢ Sentiment: Buy Disclosure: Held
