On news of a share placing of only 100'000 shares at 50p, how can the shares drop almost 10%! REH has great potential with wind farms, its revolutionary CETO undersea power and the potential for a Biofuel plant.

Hi GDP not much comment on this stock anywhere (49 only in a yer on the nutters' site!) and while it is highly risky (no profits for a while) today's announcement looks interesting and i bought a few today. posted this elsewhere:

This is one of those that might come off, or go down the pan, but it has interesting and rare (unique?) technology. Today's announcement (on the back of a positive trading statement the other day) is undeniably interesting (apologies if already a thread my search didn't find):

Renewable Energy Holdings plc ('REH' or the 'Company'), the AIM listed investor
and operator of proven and innovative renewable energy technologies, announces
that its CETO prototype, an innovative wave-energy device, has completed all
trials and has now successfully generated electricity on land and produced
de-salinated water for the first time.

The CETO device is designed to capture wave energy and convert that energy into
high pressure seawater leading to the onshore generation of electricity using
existing water turbine technology.

CETO is the first wave power converter to sit on the seabed, where it is
invisible, safe from storms and ocean forces, and self contained. Unlike other
wave energy technologies that require undersea electric grids and costly marine
qualified plant, CETO pipes high pressure sea water ashore where it drives
turbines and reverse osmosis filters to produce electricity and fresh drinking
water.

The CETO prototype is located 300m offshore from REH's research facility at Rous
Head, Fremantle, Western Australia. Successful deployment and testing is now
complete and commercial design is well under way with REH remaining on plan to
develop a commercial CETO design by the end of 2006 with commercial units
available for deployment in 2007.

Mike Proffitt, Chief Executive of REH, said:
'This is breakthrough research, now successfully trialed, which could provide
many places in the world, including Western Australia, with abundant green
energy and fresh drinking water. The next stage is to deploy an array of the
units in a medium scale trial before moving onto a commercial sized plant.'

They also have stakes in other projects so are not a one trick pony, with wind fams in Germany and Hungary and a Welsh gas windfall project. A few warrants were exercised at 50p recently too, so someone is confident.

The chart shows that from 50p float the shares are now after a year just back up to issue price so I am hoping there might be a meaningful move soon. there's around 46 million shares in issue so the market cap is about 23 million. The chart does not inspire, but there are some positive signs, though it will be a while before profits start. As I say very risky indeed, but might be orth a small investment. Not sure how long I will be in for as I am very wary of the sector and think comparisons with technology overvaluations of a few years ago are valid, only a few will make it in this area imho.

Good post Hawick, CETO is good news and you are right to say that CETO is not all that they have going for them, other projects also look promising. I think that a realistic valuation of REH would be 70 - 80 p a share.

But the markets think that anything lower than 40 p is ok!!

media comment, click HERE

Renewable sector. A poster boy for a flawed valuations.