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).

I suppose that this afternoon's rise is due to Goldman Sachs raising it's price target to 350p from 250 and remaining a buyer of the stock.

thanks Pimpernel ..... had not seen that but would go some way to explain

DOO Technical Analysis

I wasn't aware of the broker upgrade when posting the analysis, pleased I didn't say it WILL retrace, but take a breather :)

pth

whoops! didn't mean sell, i meant buy .... lol!!!!
actually, i reckon this is far enough for the moment and have taken my very considerable profit @ 280 ...... i am quite sure i will be back in, but sp really looks to have got a long way ahead of itself and at the very least, needs to consolidate

here's the beastly chart again! ...... i actually banked my profit a couple of days ago, but with a view to buying back in due course ...... according to good friend PT, the key level to watch is whether or rsi falls through 70 .... today's little sp reversal has taken it to exactly that, so keep watching ..... if fall is through that then both PT and I reckon, via diffeerent logic, that the fall i reckon fall could easily be to 240

If yoo draw a line straight up its right on the trend line so looks like Monday is all important..;O)

Doubt it will stay in this channel Ms Barefoot, retracement to 245p-250p more likely, but as you say Monday will decide. Will post some TA tomorrow.

pth

Strange...according to advfn charts its the rsi is on 80....

Depends on the time period I guess :)

Ms Barefoot, RSI on Sharescope 70 not 80. Interesting day on Monday methinks, SP sitting on the bottom of this steep channel and RSI right on support, still room for a further move upwards, but I think a fall back to rising support at 245p-250p is probably more likely. Watch those support levels :)

pth

notwithstanding that the underlying market is still (very) strong, i too think that DOO will drift back ....... i accept that there is some wishful thinking, insofar as i took my profit at 280 with a view to buying back (probably) on weakness ..... however, DOO has had an exceptionally strong run, but now that the important JV news is out, i do not perceive anything new on the immediate horizon to support the current level ...... consolidation or retrenchment is likely

DOO has nearly fallen out of the bottom of the steeper channel, actually it did for most of today but managed a good recovery. RSI and MACD both looking toppy still, can't help think that a retracement to 245p-250p remains on the cards.

pth

DOO Update

As expected fell out of its steeper channel, first level of support looks to be the upper trendline of the original channel at 243p.

pth

this was certainly one stock that did as predicted ..... SOLA is still trying hard to beat the odds i see

Indeed Cynic, but CSR, EMG, DOO and a few others doing as expected, TAN has not (thus far), changed my stance on SOLA to neutral as I did SCHE (for the time being :))

D1 founder cashes in
Fri 20 Jul 2007

LONDON (SHARECAST) - D1 Oils founder Karl Watkin took advantage of recent share price strength, offloading 670,000 of shares in the company which has doubled in value since March.

Watkin sold 250,000 shares in the biodiesel producer at 268p each, but still holds 2.6m shares or 4.19% in the company.

Last month, D1 announced it plans to establish a global joint venture with BP to create a world-leading business in Jatropha curcas: D1-BP Fuel Crops Limited.

It said the target is to plant 1m hectares over four years. BP will provide working capital of 31.75m through equity in the joint venture. Total joint venture funding will amount to approximately 80m over five years.

Jatropha is an oilseed tree that grows in tropical and sub-tropical regions and produces high yields of inedible vegetable oil that can be used to produce high-quality biodiesel.

monday morning is likely to be pretty bloody so the likes of DOO could tumble sharply ........ i know PT reckons 240/245 to be the bottom target, but if the market does not bounce quickly, then lower still could be the order of the day.

for myself, i am very glad indeed i took some hefty profits last week while i was away and i confess the turbulence of the current markets does give me cause for concern as, from memory, this sort of nonsense is often the prelude to rather more prolonged nastiness.

250 already hit followed by bounce to 256 ...... what happens next is likely to be influenced by Wall Street whose opening is now predicted to be less than rosy

DOO update:

After a slow start DOO is easing off towards our target of 245p represented by the previous channel upper trendline. I am not entirely sure this level will hold, so keep an eye on the SP; MACD would seem to suggest room for a larger fall than originally anticipated, so perhaps a revision to 220p may be in order. Spread is usually reasonable so could take profits at 245p and initiate a new trade if it falls through.

pth

DOO update:

After a slow start DOO is easing off towards our target of 245p represented by the previous channel upper trendline. I am not entirely sure this level will hold, so keep an eye on the SP; MACD would seem to suggest room for a larger fall than originally anticipated, so perhaps a revision to 220p may be in order. Spread is usually reasonable so could take profits at 245p and initiate a new trade if it falls through.

pth