HUGE PROSPECT ON D1 OILS

D1 was originally established in 2002 to focus on the development of a portable refinery technology to produce biodiesel for the UK transport industry. During this period, it was concluded that the high cost of rape seed oil, the main feedstock for biodiesel production in Europe, renders its use commercially unattractive. As a result, D1 explored the economics, suitability and yields of a variety of specific energy crops. During 2003, jatropha curcas was identified as its feedstock of choice and the focus turned to securing output from jatropha plantations.

Jatropha was selected as D1's primary energy crop due to it's high productivity, durability and longevity. Jatropha trees can be grown on marginalised land and are durable to the elements. Furthermore, jatropha can grow in areas of minimal rainfall, although it grows better in areas of higher annual rainfall. Jatropha trees produce nuts, which contain oil, for an average of thirty years and generally have their first harvest within two years of planting. Biodiesel refined from jatropha oil complies with EN 14214, the current European standard for biodiesel. Biodiesel meeting EN 14121 specification is an approved blend when mixed with petroleum diesel.

D1 is now commercialising its D1 20 refinery able to produce eight million litres of biodiesel per annum and will utilise jatropha oil as its main feedstock. D1 believes it can maintain low production costs and produce consistent, high volume quality output through sourcing existing feedstock supplies, cultivating new yields of jatropha on existing plantations and setting up D1 20 refineries regionally. D1 is working with highly regarded agronomy and biotechnology research and development facilities in India and South East Asia and is participating in the establishment of nurseries in a variety of locations in the Asia Pacific region. These nurseries will test imported jatropha seeds against indigenous varieties to determine which will grow best under a region's climatic conditions. In addition, D1 has recently acquired the rights to a proprietary growing media which targets the specific nutritional requirements of jatropha.

The global market demand for biodiesel is growing. International energy and environmental policies have helped to create a demand for biodiesel which is estimated to reach at least 10.5 billion litres by 2010 in the European Union alone. Based on current capacity, feedstock availability and positioning in the market, the global production of biodiesel is expected to reach approximately
3 billion litres by 2010, less than one third of the projected demand in the European Union.

D1 Oils aims to become a global, sustainable, low cost producer of biodiesel and supplier of crude vegetable oil used in the production of biodiesel. To reach this objective, D1 will manage its operations regionally, securing plantation rights and establishing refinery operations in each region, thus controlling aspects of the supply chain from seed selection through to the sale of biodiesel to end customers.

To this end, D1 has established four regional operations:
UK (Teesside and London) South Africa (Johannesburg) Asia Pacific (Manila, the Philippines) and India (New Delhi).

Fear and greed are the drivers. Although, in all fairness, my stake is not big enough to motivate these emotions in purely financial terms. But I sure as hell want to have played my cards the best way just for the fun of doing it right.

I think I am coming to the conclusion that a general policy that the strong first run up to dizzying heights of any share should be sold at the first significant sign of hesitation is likely on balance to be the way to go. It'll be available to buy again at some level if it merits it. So I'm a day past that policy.

This would have worked for ASC at 88p last year, SEO at 17p a fortnight ago and DOO at 500+ today.

So tomorrow at 8am I shall be watching and waiting to see which way it goes.

SD

Probably a good policy Stockdog. I just worry a little about if it shoots up after i've sold and I never comes back down again. I would then miss out on such an opportunity.

tallsiii - then just be happy with what you got and put the money in another short term winner, or you will gnaw yourself to death from the inside.

they do say running your profits is the hardest bit of the game.

it's difficult to compromise the buy and hold for life on good fundamentals attitude with the innate trader in each of us who also wants to sell on the peaks and buy on the dips.

here we go again - watched and waited at a very nice 500 bid level this morning - transfer from home to office and what do I find - down 10% again and falling.

I am treating this as Human Phase I test, prior to applying to the regulator for a licence for my patented method of stare at the headlights - do nothing!

SD

Buyers coming in now at 470/5 bid.

Maybe we're starting to see a litle support at the 450 level where the chart paused on the way up.

Whadda wabbit!

SIT, boy.

SD

Yes it did the same thing yesterday. It just looks a bit like MM tree shaking to me.

I am in this one for the long term.

Tallsii

So am I it now seems - tallsiii!

SD

I might enter if it goes down under 400p

Well, it's working well with its sister BFC today, so I am happy for a year or so yet between the pair of them.

Looking forward to 10 during 2006??!!??

SD

Up nearly 14% back to 500 bid today keeping pace wiith running matge BFC also up 14%.

Good day's work. Looks set to go higher next week, since we finished strongly at pretty much today's and defnitely at this week's highs.

Difficult to judge when to try to attempt to gracefully dismount this particular pair of tigers!

SD

Hi Stockdog, congratulations on holding on. I have dismounted DOO but still hanging on to BFC. Good luck!

hlyeo, I haven't really done the analysis, but I agree with your 400p limit buy on hunch mainly. It's very toppy just now but only because it has not done any operating profit projections such as those done by BFC which themselves are quite unsupported by any transparency of calculation on the 14m or 30m op prof.

I ought to sell out at 500p with a big smile, having failed to last time at 540, but I think there is a bit more to go next week. I think I will just set a tight trailing stop loss of 10% and sell if it falls below there. Or, if it goes up vertically on Monday I'll sell there, or I won't. They do say letting your profits run is the hardest bit. When to sell, is there a simple book just about this one subject?

Imagine in 2 years time, everything happening as planned, what then would be the price - at least 10, maybe more like 20. That's still a great return of at least 40%+ p.a.. Of course, betwixt bean and family sedan there is many a failure to meet forecasts. The SP must be very vulnerable to the slightest adverse comment at its current dizzy height.

There's an old saying - leave some profit in for the next person. Perhaps, one should wait till a share reaches a pre-determined profit and then sell regardless of the future, happy that it has contributed more than its fair share to your annual growth target. My humble target is 26% p.a., almost exactly double every three years - 0ver 15 years that is 2 to the power of 5 = 32 times - from a few 10k's to a million plus, enough to retire on - much more effective than taking the 40% tax credit and putting it in a managed pension fund at 7.5% p.a if lucky. Roll on April 2006 when we can all have SIPPS as well as vocational pensions. Then we will get the 40% tax credit and the efficiency of managing our own investments (as long as you DO NOT invest in the house you live in!)

Hey ho, the whole weekend to ponder on it.

SD

>> SD 26% p.a. does indeed seem a modest target. Mine was 30% for this calender year and I am over that already and thinking of revising it to 100%. I know that is sky high, but this is a bull market my friend, a bull market (or maybe just for the shares that some of us are in). If you turbo charge your performance for a couple of years, you should be able to set much lower targets in the future!

rgrds
gk

Agreed gallick

I actually have a 75% p,a, target for a fastbuck fund and 12.5% for a very boring value fund built up over the years from profits on the fastbuck fund. This averages out to 26% overall. As the fund gets larger I don' think one can take sufficient risk with enough of the fund to kee p gettinig 75% returns. So that part becomes a smaller share of the total fund at it grows etc . . you get the picture.

Anyway, any stock that mor tahn doubles in a short space of time is a hea of that target - cash in and be happy, or go for more - one of life's dilemmas.

SD

Always tricky that one SD. If a share doubles then you can always cash in half and have a free ride with the rest. Then of course if the share continues to rise you kick your self for not staying put. It is funny (or perhaps strange) that somehow it seems more painful to miss out on growth you could have had, than any loss you actually incur.

I have lost count of the number of stocks that have soared after I moved out of them - I think after a while you learn about patience in this game.

rgrds
gk

Fear and greed, fear and greed - that old economic perfume

SD

It is painful to see a stock you have sold move higher. Even if you think it has become fully valued and it really is time to get out, a speculative bubble can still push it up beyond anything you might have imagined. I agree with your method Gallick of selling part of your portfolio. In the case of DOO I have split my profolio into thirds. The first third has already gone and the second two are yet to meet their targets.

Having a little bit of a well performing stock in your portfolio after you have sold a significant stake does take the edge off of the painful regret one can experience when the SP launches in into orbit for no valid reason.

Tallsiii

It's very inteersting to talk of pain which is a totally real emotion, as you say tallsiii. I like your three parts with three targets - one is pot luck and even two still seems too brutal. Three feels good.

Are there any studies done on the psychology of vicarous (i.e. through the actions of others not your self) profit and loss? To what extent do our emotions as opposed to our rational intellect (if you can separate the two totally) determine our profitability all else being equal?

The pain is the other side of falling in love with your holdings - both forbidden in the brave new world we inhabit.

Anyway, missed the selling slot at 505p today - now back to 495. One more lift and then I'm tempted by tallsiii's strategy which will take out my original investment pretty much.

SD

On reflection, I'd better be safe than sorry, so I've taken out a third of my holding at 491.5 - mildly irritating to miss this morning's top, but heartened by the increase in my bank balance. It's been a fantastic run up, so can't complain.

SD

This morning's RNS (below) announcing settlement of the dispute with Steve Davis looks like good news. Hopefully will give a little momentum to the SP from its current retracement below 400p which happily I took as a top-up oppportunity.

SD

RNS Number:6746K
D1 Oils Plc
06 April 2005


D1 Oils in settlement

D1 Oils plc ("D1 Oils") has settled, at no additional cost to the company, a
claim against it of approximately 1 million in respect of a dispute over
payment for services and intellectual property rights with Mr Steve Davis and
his wholly-owned company SIF. Following this successful conclusion, all ties
between D1 Oils and Mr Davis are severed and Mr Davis and SIF have confirmed
that all intellectual property rights remain vested in D1 Oils and its trading
subsidiaries.

Under the terms of the settlement:

* No further payments are to be made by D1 Oils to SIF or to Mr Davis in
respect of their contractual relationships as described in D1 Oils'
prospectus.

* Mr Davis has agreed to sell his entire holding in D1 Oils of 1.385m
shares to the Trustees of the D1 Oils Employee Share Trust for 2.50 per
share, a significant discount to the market price at the close price of 377.5p
per share on 31 March 2005, the last dealing day before the settlement price
was agreed.

* For the purposes of the settlement only, D1 Oils' nominated adviser
and broker, Bell Lawrie White, released Mr Davis from restrictions imposed
upon him at the time of the Company's admission to trading on AIM pursuant to
the provisions of a lock in agreement entered into between Mr Davis and Bell
Lawrie White and others to ensure an orderly market in D1 Oils' shares.

Enquiries:

Philip Wood D1 Oils plc 020 7321 3885
Kevin Byram/James Crampton Brunswick 020 7404 5959

Notes to Editors:

The Trust is a newly established independent employee share trust established
for the benefit of such of the employees and former employees of D1 Oils and any
subsidiary and their spouses, widows and widowers, children and step-children
under the age of eighteen and in such manner as the Trustees may determine from
time to time.

The consideration for the share purchase was loaned to the Trustees by D1 Oils.
D1 Oils has been informed by the Trustees that they intend to repay the loan by
an orderly disposal of shares through the Company's nominated adviser and
broker, Bell Lawrie White.

D1 Oils Plc
14 April 2005


14 April 2005

State Bank of India funds jatropha cultivation

D1 Oils plc ('D1 Oils'), the low cost global producer of biodiesel, today
announced a significant boost to its renewable fuel programme in India as D1
Mohan Bio Oils Limited, ('D1 Mohan'), its 50:50 joint venture, signed a
Memorandum of Understanding ('MOU)') with the State Bank of India ('SBI') to
provide Rupees 1.3 billion (approximately 15 million) to local farmers in
Tamil Nadu to plant up to 40,000 hectares of jatropha. The harvested seeds will
have an anticipated yield of between 100,000 and 120,000 tonnes of crude
jatropha oil per annum (assuming the full 40,000 hectares are planted). The
costs of servicing the loans will be deducted from the price paid by D1 Mohan
for the seeds.

D1 Mohan is a joint venture between D1 Oils and Mohan Breweries & Distilleries
Limited in India. In January this year, D1 Mohan announced it would aim to
plant up to 100,000 hectares of jatropha across India in 2005. The financing
arrangements are a key component of this plan. D1 Oils has the option to export
25% of the crude oil to its international customers, with the bulk of the crude
oil being retained for domestic bio diesel production. The use of bank finance
to provide farmers with the ability to purchase seedlings and planting materials
enables the business in India to expand more rapidly and conserve working
capital.

P Chaudhuri, Chief General Manager of SBI, said, 'Small farmers and landless
labourers will benefit as we shall finance the cultivation. They shall find a
ready market for their produce from D1 Mohan. The loans will be realised from
the sale of the crop.'

M. Nandagopal, Managing Director of D1 Mohan, remarked, 'We believe the creation
of a sustainable, renewable energy programme in India with all of the
associated economic and environmental advantages is important and this agreement
is a very good step in the right direction.'

Philip Wood, CEO of D1 Oils, commented, 'This is a further endorsement of our
jatropha programme. Obtaining external finance for the farmers is an important
step for D1 Mohan towards achieving its objective of a rapid, large scale
implementation of this programme in India.'


Enquiries

Philip Wood D1 Oils plc 020 7321 3885
Kevin Byram/James Crampton Brunswick 020 7404 5959
David Cunningham Bell Lawrie White 0141 314 8105


Notes to editors:

D1 Oils plc is the owner of technical, marketing, logistical and other
intellectual property related to the establishment, development and harvesting
of jatropha plantations, the extraction of oil from the harvested seed and the
production of biodiesel and other valuable by-products from the vegetable oil.


This information is provided by RNS
The company news service from the London Stock Exchange