Here's a short term trade alert if you have the balls.CNM, wave...

Here's a short term trade alert if you have the balls.

CNM, wave energy explorer (soon to be renamed to CWE, "Carnegie Wave Energy") is very likely to be the recipient of a federal government REDP (Renewable Energy Development Programme) grant in the vicinity of $50 to $90 million (although I suspect the lower end, $50 million).

The REDP kitty for all applicants in Aus is $300 million to be shared between non-commercialised forms of renewable energy such as geothermal, wave and biomass. Solar has been farmed off elsewhere and wind is considered to be commercialised. The grants are likely to be announced in the very near term, some time early to mid September.

CNM is an acknowledged front runner for one of these grants. The grant programme was launched from its wave energy facility in Fremantle by the minister earlier in the year. Plus federal and state politicians have been frequent visitors to their facility. The unlisted competitors here in Australia are not as advanced. CNM has projects and wave exploration licences here in Australia and in Canada and Bermuda plus a $5 million or so grant from the French government for Reunion Island through a partner, French renewable energy giant EDF EN. Plus CNM has a HoA with Investec for $250 million for the first commercial demonstration project which is dependent on REDP funding being received.

Any buy at or around 22c is a good buy at the moment. I have been loading up at these prices in anticipation. But please DYOR. There is no guarantee the REDP will be awarded to CNM.

Here's some research I did on the company from July this year, and yes, I am biased:

http://www.hotcopper.com.au/post_threadview.asp?fid=1&tid=935242&msgno=4242569#4242569

Disclosure: I am in for the long haul. My strategy is renewable energy, lithium and precious metals.