re: News: AlgaeTec showcase facility visit fr...
Your optimism in the face of all time low prices and no useful news is impressive.
Very concerning is that this story focusses on giving us stories about oil price increases being inevitable (which not everyone agrees on) and pollution/climate issues being a worry. That allows them to tell a pretty story about AEB, but it says nothing of the economics. It sounds like the sort of story you tell when you're targetting a market of hippies.
What's the cost of production? Surely they can give us some estimates by now. How much does/will it cost AEB to produce a barrel of algae oil? With their story focussing so much on the 'inevitability' of oil prices increasing, it sounds like maybe they know their production price is not competitive with current oil prices, but hope that with higher prices it will be. Of course, if the technology is commercially viable it will become common all over the world and might even put its own ceiling on oil prices anyway, making fossil oil a much better investment.
If the algae technology becomes viable, countless mobs around the world will be using it. The oil giants will be putting far more R&D in than a little company like AEB can possibly hope to, and they'll run straight past AEB before letting them cut into their market. AEB doesn't seem to have any monopoly or exclusive resource or benefit over anyone else other than getting in early, but they're just too small to maintain anything more than a very brief period of being competitive if they are successful, which is probably unlikely. Taking a step back, if this technology is viable, one wonders why the energy giants aren't all over it.
AEB Price at posting:
25.0¢ Sentiment: Sell Disclosure: Not Held
