Alkane Energy - Back to 100p
Says Zak Mir of Zaks-TA.com
The stock market is full of hyperbole, especially from tipsters. I chanced upon Alkane Energy today and my immediate reaction was that it is the best stock chart I have ever seen.

This may sound somewhat melodramatic, but I do not think that it is an exaggeration. As all traders know (including Nick Leeson if you are reading), the way to make real money is by betting the bank on the really big calls. That is the aim of my site. Nick, if you're still there, now is the time to go long of Alkane Energy - it has to be a better bet than a Nikkei arbitrage.

Although a chartist is fully allowed to ignore the fundamentals and look purely at the technicals, the fundamental background to Alkane is a company that declared losses of 284,000 pounds in its last set of results versus 20 million pounds in the previous year. This is a great recovery situation just in financial terms and the hopes of the bulls are carried in the form of a very extended base on the chart below 20p that was in place for nearly three years. The charting rule is that the longer the base, the bigger and more powerful the eventual breakout. This would imply that we are looking at the possibility of a full return to the highs seen at the start of the decade towards 100p.

Only an end of day close below the 10 week moving average on the weekly chart at 19p would even begin to cast doubt on the upside. The minimum expected target in the near term would be the 40 week moving average now running through 40p.

from annual report;

two more methane mine gas plants are expected to come on stream in the second half of 2006 and planning permissions and land leases are being negotiated to allow an increase in the project build rate.

encouraging signs more output increased turnover. first maiden profit looking good for 2006.

starting to think i'm talking to myself- eggbert?. would have thought the opportunity to buy alk at recent low levels would attract more here?.

i do, bought 15000 for 20p but shorted it for 21.5p

well good luck then!.

rns UBS increase holding from 6.85% to 8.28%.

I bought 8'000 at 20 p , hoping for 30 p by year end. Good Company, Exciting market, Expecting Profit and heavily oversold on the profit warning, well worth a buy at these levels.

agree but can't see the sp doing much until they can show a first maiden profit at next figures. saying that the sp has taken a hammering since profit update (better than expected imo 68% reduction in operating loss). oversold was my thinking and was also predicting some sort of recovery short term.

med long term though!. 2 more acquisitions expected this year further increasing output.

I've bought in at 21p and am prepared to hold longterm. I think that companies like ALK hold huge potential as the concerns regarding CO2/ methane emmissions and energy prices are only likely to increase in the future. They have a proven product that they manufacture and build themselves, and that is operational in different fields ie. mine gas and biodigesters.

I am fully invested at the moment, but it is on my stockwatch, i do agree that this stock has been over sold. I would certainly wait to see if the company makes a profit before making a commitment.

good rise today

agm tomorrow gdp.

encouraging agm.

Pro2.

I have it that total sales for 2005 17.45m
sales so far 2006 euro29m sterling 19.86m

bullish statement and signs looking better for first maiden profit.

2 more mine gas sites underway.

some decent buying this am. agm at 10.30am.

Any more news from the AGM Lizard?

gdp- have you not read the statement?. worth holding i think!.

I have bought in today and like above posts think this is a good medium-long term hold at these prices.

Yes the statement does look good, I'm looking to hold for now.

agree i will hold until next results! they better be good.

some decent buying today surprised marked down.

Not too good today!

i think we need to weather the storm here. encouraging agm and looking for first maiden profit in 06- will hold until results to see if progressed as expected?.

Yes I think thats my plan too. I can see a recovery waiting in the wings.