If a small cap moving 5% / 1 c is "tanking", then perhaps the...

If a small cap moving 5% / 1 c is "tanking", then perhaps the volatility may be too great. Tanking is what A2M did today, or the coal price, or the iron ore price.. today's movement is nothing to worry about. 19c is sub-IPO price, and reckon that's a pretty fair entry point.

The announcement today I reckon is really good. I had noted earlier that I thought if they modelled themselves on Ameresco (https://www.ameresco.com/) it would be much more beneficial than if they go chasing unicorns in terms of municipal systems. The large scale systems are much more competitive with the likes of Cleanaway, Viva Energy, LMS, etc (just go look at who the members are of Bioenergy Australia, most of which have no projects but are positioning themselves). And, the margins should be better at the smaller to medium scale (sub ~$20m assets), where they can work direct with businesses, farms, energy users, etc to install their bioenergy solutions. Ameresco is a $4bn company in the states today, and does heaps of these smaller develop & operate ventures - less than five years ago, they were $400m. It's about getting the model right, and scaling it out to new opportunities, of which there are plenty. This announcement, like Richgro previously, I think positions them really well. May not be earnings accretive in the short term, but it's the right strategy from Hamish Jolly & co to my mind.

Happy holder.