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.

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.

there are a lot of alternative energy companies world wide coming to the market. lots of them in Biogas and Biodiesel, with plenty in Germany. while valuations are high, it does in the short term take the focus away from the UK stocks. Will take longer...
Wonder if marketcap and liquidity could not be an important factor?

Looking much better today ,plenty of buys going through.

16/05/06 - 15:50 U.S. markets barely hold major support. WHY is this on recent company news! It hardly creates positive sentiment towards ALK, it should be removed by a MoneyAm person.

GDP- alk still getting absolutely hammered. i emailed s goalby f director last week to mention to him about the china mkts and caterpillar (nyse) signing agreement with chinese partners to develop worlds largest coal mine methane project. i have reviewed alk website and it mentions delegations from china india russia visiting alk uk. i was keen to know if this is alk's plans to expand out of the uk and into massive mkts like china (they have numerous disused coal mines).

he did confirm that this was something they are looking to develop and when appropriate will make relevant announcements.

imo alk need to break this mkt to take the company to the next level. watch this space and hope alk can deliver some encouraging news SOON as we really do get f all rns from them.

alk 16p bloody hell.

All this is very interesting. Delegations from China and India. Only this will cost time and money do develop. And Investment in emerging market exposure will not be honoured short term by the market. over 1/2 year this does look interesting, meaning there might be lower entry points. Sadly markets are only looking short term.

FT- with alk i am certainly looking at holding for about 2 to 5 years.

Hi Lizard
you want to take a look at Schmack Biogas, a recent IPO in Germany.
Company is building biogas projects with labs, so can test if and why the gas production might not be optimal and can be improved. What I mean to say, there are other companies coming to the market. Where Alkane is different, is the specialization in the Methane Mining.
Still I agree with you, the fear of the market is not quite rational, or I missed some future development. I do expect the next few months to be great entry points.
in the meantime enjoy the world cup.

ft- do you agree the chart is forming a double bottom support level here imo this is completely oversold!.

Lizard .... though your observation is no doubt correct, there are any number of shares in the market where this applies ....... the prudent approach, and i do have to keep smacking my fingers away from the buy button, is to do nothing until the markets stabilise, and that should also include above 5620 for FTSE and 10940 for Dow.

sp down from last years high of 59p (int day). bloody hell. and all this because they reduced losses by 68%?. YES REDUCED NOT INCREASED!

i deal in china may start the recovery!. some imo unjustified battering this stock has taken!.

China as in country or as in market trader? ...... I still have an innate aversion to dealing in China as I have seen some pretty uneuropean ethics in practice from quite high up the food chain.

many opportunities in china- last week caterpillar (nyse) signed an agreement in china to develop the worlds largest cmm project. alk have according to website been approached by delegations from china russia india.

there are many disused coal mines in china.

theyre getting closer to 1.00p ;)

isn't everything atm!. look at vog.

you would have thought the worlds natural resources had dried up overnight!!

Hopefully an England win this world cup will give a lift to the FTSE! Alk at 14 p, how much lower can they go?!

don't gdp i couldn't take it!- look at the mkt cap alk- not the only bargain around atm after this sh$t run!.