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.

just jumped on board at 33p. Liked the article in Small Company Sharewatch.

Thread for the more intelligent.

https://www.moneyam.com/InvestorsRoom/posts.php?tid=8461#lastread

Why the jump today?

why not- it has been over slaughtered in recent weeks -imo. i think the selling has been overdone-

The jump was probably due to the article in SCSW.

some huge volume today 25m- something is going on!

This is from The Times today.Alkane Energy rose 2p at 37p as ten million shares said to have come from Apax Partners, which has been trimming its stake were sold on at 35p

Question is how to perceive this, bad that Apax trimming its stake or good that easily found investors with >8m to buy 24m shares?
A friend pointed me in this direction and have been watching, these mines are all local to my birthplace and there should be some more hopefully.
Tempted to have a dabble on Monday, wish I'd bought at 29p a few weeks ago but was worried about retracement back to 20p!!
Thats why my question about 25% of company changing hands, good or bad news?

apax- record isn't great woolworths springs to mind- may be better without them- although no shortage of buyers for this stock.- is there an article in shares mag for alk this week?. andysmith i also was waiting to see what happened having concerns on where the bottom was? have since taken the plunge.
many are trading on a short term basis but my view on this company is longer term.

The article stated that although it was languishing at 11p for most of the year, there is still room for further sp increase with ALK. I think the sharp surge to 60p made it inevitable it would drop back, shorters/profit-takers etc.
I am comfortable to invest in this with evidence of big buyers, should get RNS this week advising who. If I'd had the time Friday pm to look and see the big buys I'd have been in then at 35p, never mind.

possible run until results?.

This is going to brake 50p by next week.

don't know about 50p but 40's could be possible- my view is longer term on this company and remain med/ long term holder.

rbs taking stake in alk-

yes v. nice. This should give a huge boost to the sp as the big institutions dont go taking stakes in companies of Alkane's size willy nilly. V. good news.

howdie chaps - am new to this thread - not sure how i missed ALK, as it seems to be yet another one of those "great concept" shows.....

anyway, was scouring their website trying to do my own research, and i have a couple of questions that are not answered by the material they have up there.
was wondering if any of you guys might know the answer, or have any idea;

1 - does ALK have a target of MW size that they are working towards ? (as many other energy providers do)

2 - what limits are there on the methane supply from the mines ? (ie; is the supply of methane from the mines neverending - regenerating itself - or will it die out after a number of years ?)

3 - what is the realistic likelihood that the biogas farm idea that they have, will actually be implemented amongst farmers ? (ie; what's in it for the farmers ?)

4 - can their technology be easily replicated ? (ie; are they the world's best at what they are doing ? is it all patented ?)


if my questions seem stupid, or are answered elsewhere, then please just let me know, and i will head there............my initial thoughts were that ALK sp is something that would simply rise and rise and rise, for the next 5 to 10 yrs......but then i realised that there is no doubt a bit more to it all.


thanks in advance for you help.

Hello,


1. I don't think they have a MW target.They had to put plans on hold when prices went down.Now they have re-started projects ontop of the new ideas ie biogas.

2. The gas will run out,don't know the time frame.Alk hav licenses to develop most old mines in the UK.

3. This could be a grat business but as it is new will take longer to gain momentum.

4. This was their best move,buying Pro2 in Germany.They were supplying plant to Alk.It also gained a great foothold in Germany where prices are much better.Through this buy Alk has expanded into service contracts and deals in Eastern Europe.Poland Russia and others have huge mining area's.

I think Alk will do well short term & really well long term.

does anyone know about this potential bid rumour for 'alk' or is it just fantasy?

results 21st september i think?.

Hi belisce6

sorry, was out of the country.
Great questions and not easy to answer them all, think eggbert has done a good job. Just a few more thinks to consider:
Biogas on Farms: Is not new, but because of logistic, time and space farmers have not embraced Biogas. Easy to do with cow dung. Research is on the way to use Biogas for organic household waste. Cost there are in waste separation. Will the waste be heated or not, it makes a difference on the quality of gas produced.
concerning methane mining: with China and other countries having explosions in mines every year, the technology export is very important. Alkane have indicated that they have exported the technology to several countries, without giving more details. I would like to hear a lot more about this.

I also like the sound of Alkane, but would like the company to give more operational information and targets.
As you might know, Germany is leading in handing out alternative energy subsidies. Solar wins most at the moment with Wind following. Wind has quite a few critics and is loosing ground. Biogas is not that high on the list, but improving. UK should follow, if it wants to have any chance in reaching carbon emission levels it has indicated in reaching.

Very exciting field

hope this helps a little
FT