Arrowhead update: Algae.Tec fair share AU$1.51 to AU$2.15
SEPTEMBER 13, 2011 BY EDITOR
Arrowhead, a leading American business and investment consulting firm, has projected exciting success for the alternative fuel company Algae.Tec in their updated ?Due Dilligence and Valuation Report? on the company.
Arrowhead originally published the document in March 2011. It can be read here.
Due to its innovative technology, financial viability and strong government support ?Arrowhead believes that Algae.Tec has enormous growth potential with a medium risk profile.?
The report highlights that ?the global market for Algae is poised for explosive growth in the next 10 years reaching 61MM gallons per year and a market value of AU$1.3B by 2020 representing a CAGR (Compound Annual Growth Rate) of 72%, roughly on par with early developments in the biodiesel industry.?
The United States, which already accounts for 50% of total algae biofuel activity is poised to ramp up production. According to the report, The European Union (EU) market, accounting for about 30% of algae activity, will be limited initially by the industry?s focus on university research, and later by insufficient access to water, land, and nutrient sources.
The report rates the intellectual property risk as MEDIUM, because the company is in the process of obtaining a patent in relation to the McConchie-Stroud System technology.
The financing risk is rated LOW because the company is in its initial stages of development and is building a demonstration facility. In addition, the success of the McConchie-Stroud System is rated HIGH. The company?s technology is innovative and moving towards commercialization in the near future.
The key personnel risk is rated MEDIUM with the two key directors, McConchie and Stroud, who developed the McConchie-Stroud system, equally committed to this new expanding business.
The report serves as evidence that ?Algae.Tec has enormous growth potential with a medium risk profile ? Arrowhead believes that the company?s fair share value lies in the AU$1.51 to AU$2.15 bracket.?
Read the updated ?Due Diligence and Valuation Report? on Algae.Tec here:
http://algaetec.com.au/2011/09/arrowhead-business-and-investment-decisions-projects-exciting-success-for-algae-tec/
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