http://www.afcenergy.com/

Dawnay, Day Corporate Broking Research Note

Aim Admission Document

Next news is possibly only 2 weeks away - I'm sure as usual AFC have been very busy behind the scenes. The link with Linc Energy in Australia may prove to very usueful in helping to promote AFC (see last RNS) I am happy to hold!

I think that the rns's are mixed up with Arsenal Football Club ! AFC....

Some real interest here this am,with trades in excwss of 17.5p earlier and settling around 17p. Is news on the horizon, as i can't find anything to ustigy such a leap?
cyril

Posted this on a competitors thread yesterday, re AFC and RHPS.

Several years ago when a subscriber to RHPS I ran a test portfolio on their tips, buying only shares in a handful of companies over the time period of about 3 years.
I found that well over 75% (can't recall the exact figure) of the shares tipped rose on opening, mainly due to the fact the MM's knew that many PI's would buy into the tip and the fact that these shares were by definition fairly illiquid. The sp would then fluctuate a bit during the day, usually closing below the days high, but still up.
I am sure many day traders feasted on this idea. So I would think if tomorrow follows the usual pattern, the sp will open higher than Fridays close, fluctuate a bit, then close up but lower than the days high.
The caveat is obviously that if AFC have a news issue the above will be blown out of the water.

As to RHPS tips, I found that it was helpful in that I would research a company mentioned, biding my time till the inevitable loss of interest dip and that is when I bought into the few companies I ended up investing in.

I just hope AFC is as successful a tip as SEO was a calamitous failure (I have strong feelings it will be).

And today re the sp and availability of shares due to someone stating that they can only get an online quote to sell 5,000 shares max......

I think they are just playing the market as usual. I expect they will try to make the most of today, with risers and drops to test those committed to AFC or just in for the short ride.
They will play to the fear of those new punters that are in due to the week-end tip.
I wonder how many will get in today without doing any research at all. They will be the most vulnerable to todays fluctuations.
The spread of 4.4% which is a bit less than normal might also be worth keeping an eye on.

Results Out.

I wonder how many investors will be disappointed in there being no news of further contracts or the like but I never expected any major new revelations because these need to be disclosed immediately in an RNS.
The results to me look excellent, especially the forward looking section. I especially like this statement,
'We believe that the successful commercialisation of AFC Energy's fuel cell system technology will be as important to a hydrogen economy in the 21st century as the internal combustion engine was to the petrochemical industry in the 20th century'.
Over the top!, possibly but who knows. I wonder how many people said, when the first motor car (internal combustion engine), went past, 'IT WILL NEVER CATCH ON'.

So to the sp.....At present value, probably about right.
On a future value of possibilities, I would not dream of a forecast except to say, The Sky really is the LIMIT.

I would sooner things move along nice and steady without the 'flannel'

Those who were in Stanelco and perhaps still are, will remember their results which were continually filled with up in the air projections/promises.

I agree there will, as said be many who are disappointed, and possible many short sighted investors will sell on the results.
To me I am not looking for 'jam today or even tomorrow' but honey and champagne several months down the line.

As you all know, I am the IF man, and yes again there are still ifs and will be for some time, but my confidence in AFC are higher than they have ever been.

Re-testing recent highs.

Preliminary Results for the year ended 31 October 2009


AFC Energy PLC (AIM: AFC), the low-cost fuel cell company, today announces its preliminary results

for the year ended 31 October 2009.

Highlights of the year

Successful trial of initial Alpha fuel cell system at Akzo Nobel in April 2009

Second chlor-alkali partnership signed with Ineos ChlorVinyls

Significant progress in both electrode specification and system design.

5 further patents applied for

Technical and management team strengthened to support anticipated growth

Operating costs further reduced

Since the year end


2.2 million raised through share placing and option/warrant conversions

Cash balances at end February 2010 of 3.19 million.

Heads of agreement signed with Linc Energy to exploit underground coal gasification

SuperGreen Power Station project initiated with WSP Group plc, CEL International and Air Products as confirmed world class partners

Agreement with Centrica plc for reservation of future capacity


Ian Balchin, CEO commented,

Our objective is to develop and commercialise an alkaline fuel cell system for the 21st century at a significantly lower cost than any other fuel cell system. We have made considerable technical progress this year and have deepened and widened our commercial relationships with key partners. Our Alpha system fuel cell will be further tested by both Akzo Nobel and Linc Energy during 2010 and we remain on track to deliver our first 50kW unit in 2011

Tim Yeo, Chairman added,

I am delighted that new management team has accelerated the technical and commercial development of the Company beyond R&D and towards revenue. I firmly believe thatAFC Energy is now fully equipped to prioritise and develop its many commercial partnerships during its next phase.
cyril

Very promising indeed....could take off like the space shuttle at some stage !.

Yes and doing very nicely today,hitting new highs with all trades so far "buys"
cyril

Is this going to go like the old ITM of a couple of years ago ?...

Aother good day,which in todays market is quite something?
cyril

A trade of 90,000 @ 22p near the end/
cyril

It's twinned with CHAR....lifting off now....

23p and climbing....crikey !..

Seems unstopable,looks like pi's like the technology?
cyril

Up again tomorrow....?...goodie,goodie...

Yes,now paying 25p.
cyril

Floor 26...anybody interested in floor 26...no....doors closing....doors opening...floor 27...anybody interested in floor 27...no...doors closing....

26.27P at present, with pi's still happy to buy?

this Broker note is for 325p year end, can't seem to access it myself?

http://markets.ft.com/tearsheets/analysis.asp?s=AFC:LSE
cyril

You have to sign in for that....

Many investors of AFC will no doubt have been in SEO (stanelco) and will remember all the research posted by a particular member.
There were reams and reams of posts, many predicting huge profits (that famous post predicting 35 before Xmas) many were caught up in the hype of promises, promises.

AFC of late have been predicting big things (AFC believes that a working low cost hydrogen fuel cell is as important to the hydrogen economy as the invention of the internal combustion engine was to the hydrocarbon economy).

So will AFC end up like SEO (present sp of .34p).

Well SEO was built of nothing more than hot air with the odd very small contract thrown in for good measure, whereas AFC are building their sp with good solid contracts, that although few in number look more convincingly like a trickle will turn into a flood.

Although not lead by the hype, I did on my own research put a few grand into SEO believing what I can only state as company untruths (what MP'S call errors of judgement). You can guess how much of that is left (keeping it now against any CGT gain). But AFC are putting their substance into their RNS's and although there are still a few if's mixed in the pot, I have great hope that they will succeed where SEO failed.

On a competitors thread someone asked re the chances of AFC gaining entry to the FTSE 250, well who knows, the if's get bigger, but most companies start off small. AFC might just be one of the very few that make it to the big time, but they are still almost a fledgling company.

Now how about the FTSE 100. OK perhaps getting a bit ahead of myself and going into dreamland? Nice to dream though.