If management are loose with their news why did it not go for a run before the announcement and only open at 1.3 cents, up a mere .2 cents? Be careful people. Also, look at their cash position, think about how they will finance the feedstock on a large deal (even though we don't know exactly how large it is), calculate the input-output margins etc. This has all happened before. Ask yourselves, what has happened that has turned the Australian biodiesel business model into a viable business idea in the last six months. What other turn-arounds have there been recently in the sector? I have to give the management utmost credit for keeping this company alive on the smell of an oil rag. And for signing the deal. But hard to see it justify at tripling of the price in one day. Also note, that there are 3 times as many shares on issues as the last time it got to this level. Sorry for what seems like downramping, most experienced day traders will know all this or don't care as long as there is a good trading profit. However, these 'green' stocks with some 'emerging technology story' also tend to suck in the good intentioned, small investors who get a little bit greedy. I was one about 3-4 years ago and lost a lot of the biodiesel sector. While the sector has a nice 'feel good factor, its not for the faint hearted. The only biodiesel I would go near is MBT...based in Malaysian and India and leader in next-gen Jatropha...but even that is HIGHLY speculative play.
TEK Price at posting:
2.5¢ Sentiment: None Disclosure: Not Held
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