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'm disgusted with you lizard, alk was 20.50p to sell when I went off for the day and left you in charge, what have you done?, 18p now.

the sp is bloody annoying. will hold though after this major step into profit.

short termers selling on news.

More like "long termers" forcing the price down!

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Post 47

you suggest on this thread 1- - - - - IMHO pretty unlikely, other than due to a temporary glitch - such as the recent surge in Energy prices. As we all know, more providers will step-in and the price falls. That is what happened with oil/gas and ALK is really a "gas tailgater".
I was never convinced they would get that much energy out of old mines as the mines weren't exactly gushing (ie before they closed). I don't doubt there is some energy there, but whether it's worth all the halabaloo extracting it and checking the gas-air mix......we shall see.

Finally I am probably the last to make the connection between fuel and CO2 - but doesn't this process merely extend a mining operation? Methane is another hydrocarbon and the best place for it...is in the ground where it's been for the last million years.

Certainly at 10p it was a sound punt, but with energy prices ALK powered to 50p - which it couldn't maintain and that is "probaly" the case at sub-20 (= now), because of several years of losses to eliminate.

Interesting feature about Alkane on todays working lunch.

http://news.bbc.co.uk/1/programmes/working_lunch/default.stm

bw- what did it say?.

It was a short feature on how the methane is taken from the old mine shafts and turned into electricity. You can watch it on the working lunch web site.

cheers.

billywills, thanks for info on working lunch, just watched it on video play, very good coverage, just wish I'd invested my 'green money' in Tanfield, I'd be green and rich!!..doh

Alkane finally gets some good press!It has strong opposition for a new plant to be built near Wetherby.

People dont seem to understand that the Methane gas exists (and is a much bigger problem) even if Alkane do not burn it.

I'm surprised Alkane haven't been able to raise more money on the back of those results, another 10 million quid at 18p to 20p would speed things up a bit.

may see a merger or acquisition. as mentioned in results.

barclays increasing rns.

i like it how no one defends alkane to hangon - you just breeze past the comment and pretend you never heard it - IMO a bad idea.

what?.

if your clever enough to use the internet then my comment is extremely easy to undersand. Even hangon himself should support me here.
I apologise if you are in any way retarded and unable to comprehend my statement.

first ever profit for the company delivered at recent results and the sp slides continuously -beyond belief.

Technical problem lizard, I don't think it will be resolved until 27th April.