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.

Alkane Energy PLC

22 June 2005 For immediate release


Alkane Energy plc ('Alkane' or 'the Company')

UPDATE ON UK ELECTRICITY GENERATION OPERATIONS

Alkane Energy, the rapidly expanding international renewable energy company, is
pleased to announce that it has completed connection of two electricity
generation plants, fuelled by methane captured from abandoned coal mines.

In its AGM statement dated 11 May 2005, Alkane announced that coal mine methane
(CMM) generation projects at two sites in the UK were complete and awaiting
connection to the electricity supply grid. The Company is pleased to confirm
that these two sites are now connected and are successfully producing
electricity as planned. The two sites, at Bevercotes and Markham in
Nottinghamshire, have a combined generating capacity of 5.4MW.

In addition, excellent progress is being made on two more CMM plants at
Whitwell, Derbyshire, and Mansfield Woodhouse, Nottinghamshire. These will
contribute another 2.7MW of generating capacity and are expected to be
operational by Autumn 2005.

Alkane's CMM plants in the UK are expected to capture approximately 22,000
tonnes of methane in 2005, equal to carbon dioxide savings of around 500,000
tonnes. This is equivalent to the carbon dioxide that would be saved by
building around 285 one megawatt wind turbines.

Commenting on the UK electricity generation business, Dr Cameron Davies, Chief
Executive, said:

'Climate Change Levy exemption benefits coupled with high electricity prices in
the UK have significantly improved the economics of our coal mine methane
operations and the successful completion of our plants at Bevercotes and Markham
represents a major step forward in our electricity generation business. The new
UK projects complement our operations in continental Europe where we generate
renewable electricity, manufacture climate change mitigation systems and supply
high value added services in the methane-to-electricity market.'


Enquiries:

Alkane Energy plc Buchanan Communications

Dr Cameron Davies, Chief Executive Eric Burns, Account Director
Tel: 01623 827927 Tel: 01943 883990

Telegraph

Saturday's Questor column:

Alkane Energy

"Highly speculative but worth a punt at 35.5p"

Grevis, there's a lot of tumbleweed blowing through this thread!

You'd have thought with the price climb of the last few days the place would be awash with posters. I'm in at 12.5p. Got in purely from the chart. Glad I did!

Now's the tricky bit; to take some profit or not? This is an absolute skyrocket of a share. What's behind the last few days' frenzy anyone?

Beasties,
I have held this share since it crashed to about 86p.It has been as high as 140p.Back then the business relied totally on UK cmm.Know the business is very diverse,with money streams coming from Germany and across Europe.They have also moved into other areas such as biogas,this creates a much more robust business.
I have purchased at 10p,so sitting on a tidy profit would be stupid not to sell.I like being stupid so i will be holding on.This share is easily worth 100p its just a matter of when???

eggbert- same for me still holding well off highs 120p

Lizard,

Stupid is as stupid does!We have had much bigger setbacks than todays drop.We broke the 50p barrier,so look forward to new highs.

Eggbert, you have my sympathies. We've all had shares that've plumetted and held on in the hope they'd bounce. I admire your resilience as you've held for quite a while. Been glancin at these for a couple of years now, and uncharacteristically it seems I've got my timing right in getting in when I did. Which is nice.

I don't like it when a share I hold rockets upwards like this because it all becomes about the timing of banking a profit balanced against missing out on an extended run. So instead of watching it rising gently with a contented smile, it turns into a stressful gamble, whereupon you inevitably work out what you could've had if you'd sold at the top and got back in just as it starts its second rise!! I'm still hacked off about PET cos of this. Grrrrrrrr. No doubt I'll just hang on.........

it has risen nicely but not in the same league as white nile 10p to 137p in 10 days.

This looks a bit too precipitous for me at the moment!

Remember:

Telegraph

Questor column:

Alkane Energy

"Highly speculative but worth a punt at 35.5p"

still hanging in there- hold long term if it falls further i will buy more.

They are flying again. Hold tight!

Grevis,

Hold tight! what are you expecting.

Buy Alkane Energy at 34p
Says Stewart Dalby of Oilbarrel.com
With the announcement that it has completed connection of two electricity generation plants in the UK, fuelled by methane captured from abandoned coal mines, Alkane Energy, the rapidly expanding renewable energy company really has "Returned to Go" to use the Monopoly board game parlance.

Regular readers of Oilbarrel.com will recall Alkane had to put its UK operations on hold more than a year ago because of weak electricity prices compounded by the UK government's disinclination to allow Coal Mine Methane (CMM) into the Renewable Obligation (RO). This would have boosted revenue.

Alkane listed on the London Stock Exchange in 2000 raising 30 million pounds and announced it would roll out 100 plants to trap methane gas in abandoned coal mines and wholesale it for electricity generation in the UK. The company got as far as five plans before the whole project began to look unviable. The share price tumbled badly to settle at around 10p at one point.

Alkane put the UK operations on hold at a cost of nearly 20 million pounds and for 4 million pounds bought 51 per cent of Pro2, the group which manufactures and maintains methane systems and also produces a little methane gas. In Germany legislation is different to the UK. The renewable law enables CMM sourced electricity to have a guaranteed price equivalent of 48 pounds per MWh. This compares with a price in the UK which has been around 22 pounds per MWh.

Turnover was transformed and Alkane started to look at other projects. Also in Germany, in conjunction with a company called A-Tec, Alkane went to more CMM production. The first plant, Joarin , came on stream in March 2005 and three other plants are being developed.

In the second half of 2004 Alkane shipped its first containerised mine safety system to Iran at a cost of US$1.2 million. The company has had talks with Russian interests to sell such systems there. There is also thought to be a pent -up demand for such containerised units in countries like China and Hungary.

In Northern Ireland Alkane has a biofuels project in the pipeline. With electricity prices in the UK picking up Alkane is now revisiting its original plan for the UK. The two sites, which have been connected and are successfully producing electricity as planned are at Bevercotes and Markham in Nottinghamshire. They have a combined generating capacity of 5.4 MW.

In addition, excellent progress is being made on two more CMM plants at Whitwell Derbyshire and Mansfield Woodhouse Nottingham. These will contribute another 2.7 MW of generating capacity and are expected to be operational by Autumn 2005.

Alkane, which is very environmentally conscious, says its plants in the UK are expected to capture approximately 22,000 tonnes of methane in 2005, equal to carbon dioxide savings of around 500,000 tonnes. This is equivalent to the carbon dioxide that would be saved by building around 285 one-megawatt wind turbines

What these new plants mean for the bottom line has not been explicitly spelt out. But Chief Executive Cameron Davies, says" Climate change Levy exemption benefits coupled with high electricity in the UK have significantly improved the economics of our coal mine methane operations." Brokers are estimating the company could bring in a profit of 1.2 million pounds a year.

In the year which ended December 31st, the group reported a substantial drop in operating losses to 753,000 pounds (2003: 1.4 million pounds) on turnover up 172 per cent to 19.8 million pounds (2003: 7.3 million pounds). The company is confident of recording a profit this year . The new UK plants should help this process. The shares have moved up to around 34p but further upside potential is clearly there.

Key Data

Seems to be well recommended at these levels. Let's not forget the Telegraph's recommendation

Telegraph

Saturday's Questor column:

Alkane Energy

"Highly speculative but worth a punt at 35.5p"

certainly plenty to interest the average investor here, but i think it may have topped for now...

longer term looks reasonable, may have a few...

i have bought in for long term- potential is better placed now than when floated at 90p.

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.

Brokers are estimating the company could bring in a profit of 1.2 million pounds a year.

Nice 50K buy has just gone through.