Agcert is the offspring of XL Techgroup, a development capital group with an impressive track record. Its principle business is the development of biodigesters that help to reduce methane emissions - one of the principle contributors to global warming - on livestock farms. Farmers and companies in the EU are coming under increasing pressure to reduce greenhouse gas emissions and Agcert is perfectly placed to capitalise on this. Although a new company, it already has contracts of Eu74 million, including some heavyweights like BHP Billiton and Nuon. The beauty of Agcert's business is that, along with the initial sale of the equipment to reduce carbon emissions, every sale secures for Agcert a revenue stream as Agcert sells-on the carbon credits produced and takes a percentage as commission. With gross margins of 70% plus, Agcert is not a share to miss out on in todays world.

Cheers, DYOR.

So what's caused the big drop in price today then?

Agcert shares tumble after broker note
Tue Jan 30, 2007 9:51 AM GMT



LONDON (Reuters) - Greenhouse gas reduction firm Agcert International had more than 20 percent wiped off its shares on Tuesday after its price target was slashed to 70p from 270p in a broker note by Morgan Stanley.

The note downgraded Dublin-based Agcert to "underweight" from "overweight". Agcert gives farms technology to cut pollution and sells the resulting saved carbon emission reduction (CER) credits to companies that need them.

"We expect higher losses in the short term, lower structural profitability of the business and a lower option value than previously envisaged," said Morgan Stanley analyst Luciano Diana in a note.

Shares in Agcert fell 20.2 percent to 98-1/2p by 9:28 a.m., valuing the company around 166 million pounds.

The price target had been cut because of lower sales and earnings estimates, the note said.

The note reduced the number of carbon emission reduction credits it expects Agcert will create to 4,000 per site from 5,500 per site, based on recently available information.

Agcert said earlier this month it had finalised the first part of its planned 70-million-euro debt funding programme.

It also said a 14 million euro (9 million pound) bridging loan had been advanced by two of its major shareholders to be repaid by the end of March.

AgCert said in December it was aiming to raise money to finance further investment, with the aim of becoming cash flow positive by the end of 2007.

Heading to 70p tomorrow

On a Saturday? How much of a doom-monger are you?!

Are you dreaming, queen1. Today is Friday. Wake up...LOL

By the way, I am not a doom-monger. I'm being realistic with AGC

Apologies, fully awake now. However it was up a penny rather than down 11.5p thank goodness.

Apologies accepted

I still don't know what u r talking about... it was never 11.5p down on Friday...wake up...LOL...apologies accepted...are you drunk???

No but I think you are. On post 28 you said, "Heading to 70p tomorrow." At the time the SP was 81.5p. You were therefore suggesting it was going to drop 11.5p, thus arriving at your figure of 70p. It didn't, it went up. Which part of that are you struggling with?!

Are you happy that I'm going to be right now, queen1?
76.5p at the moment.

Of course I'm not happy you idiot. And they may go down to 70p and beyond but I feel you need to re-assess your timescales when making these insightful comments - which as it happens mirrored a broker downgrade made at the same time.

hahaha...that is what happens to losers...foul words start coming out of their mouths

Do you know, you're right you smug twat.

You are welcome queen1

Queen1, you are not bailing out yet? 72p now!

Nope, not at all. I may be wrong, and it's certainly happened in the past, but long term I think these will be worth many multiples of today's sp. That's not to say I'm not disappointed by the recent falls but I think over time (5-7 years) these will be way up in yonder blue sky.

Are you satisfied that I'm a 'right' idiot now, queen1?

Right? Yes.

Smug? Certainly.

Self-congratulatory? Absolutely.

Well done. You must feel very proud.