Alkemy Capital Investments Share Discussion Threads

[lageraemia] 04/8/2014 09:59

I think we'll get a back test of 36-37p Space - I hope so as my Investment club is hoping to top up (buy back the 50% holding we sold at 50.3p in Feb).

The Investor's chronicle is normally the kiss of death - short term spike up followed by down!

[spaceparallax] 04/8/2014 09:24

Thanks for that Lag - it would appear that some are taking note.

[lageraemia] 01/8/2014 09:13

Here's the first paragraph of the IC article:

If you followed our advice this time last year to buy shares in independent power producer Alkane Energy (ALK) and sold six months later - when we said take profits - after shale gas speculation disproportionately boosted the share price, you would have banked a quick 29 per cent profit before dealing charges.

We've been waiting for another buying opportunity and it has arrived. Alkane's shares have drifted below the level where we last tipped them and again offer excellent value, rated at just nine times next year's forecast earnings compared with 19 times at their peak. Technical analysis suggests they are oversold, too - the 14-day relative strength indicator has plunged to a three-year low. This technical set-up often produces a sharp bounce from a support level.

More importantly, the fundamentals of Alkane's power-generating business remain strong. The company continues to enjoy steady annual growth at its base load operations, where power is generated 24/7 by extracting methane gas from abandoned coal mines and converting it into electricity using onsite generators. It sells the electricity to National Grid (NG.) at a healthy mark-up. Alkane had 18 coal-mine methane (CMM) sites operating in the UK at the start of 2014, with an installed capacity totalling 45 megawatts (MW). It plans to bring two more sites on-line this year.

However, Alkane's relatively new power-response operation is the fastest growing part of the group. Here, Alkane buys gas wholesale and turns it into electricity during times of peak demand when prices are highest. Installed capacity was 36MW in December 2013, but this has risen to 92MW following two attractively-priced acquisitions this year, including the £12m purchase in July of three power-response companies with a combined generating capacity of 49MW.

[pcourt] 31/7/2014 18:22

One of the Main Buy Tips in Investor Chronicle tomorrow. .......

[cyfran101] 26/7/2014 11:53

VSA positive:

hxxp://www.proactiveinvestors.co.uk/companies/news/70716/alkane-energy-acquisition-is-a-major-step-forward-says-vsa-70716.html

[nil desperandum] 25/7/2014 18:28

I was pretty upset by the placing, but I talked to the company and was told that the pre-emption rights were agreed to be passed over at the last AGM - the cash box was not a company request apparently. That aside, I was still not happy. And I note that the cost of the placing hasn't been released yet either (at least not that I can see!)

[puffintickler] 25/7/2014 17:22

Thanks for that Leoboy.

It is clear that Alkane has in reality done a placing without shareholder approval. As the saying goes "if it looks like a dog, barks like a dog and wags it tail like a dog then it is a dog" even if the owner says according to his definition it is a cat.

I for one am very unhappy with the deal and this by-passing of the rules designed to protect shareholder's interests. I would have been less unhappy if we had been given the possibility to participate to a meaningful degree at the same price. It would have been easy to include a clawback of say up to 30% of the placing depending on the interest from existing shareholders.

As it happens we can all participate at almost the same price now, but that is beside the point.

[leoboy] 25/7/2014 12:28

some comment on the "cash box placing" - they must have been in a hurry ? :

[investopia] 24/7/2014 11:52

A cheeky retest of 30p on the cards, maybe?

[au24] 24/7/2014 10:01

I'm looking to buy again once the direction changes as I like the model.

[cyfran101] 23/7/2014 23:51

Not entirely sure AU24.

At a guess you could say that they are not growing organically as fast as they were and are buying growth?

To be even handed though they have focused their efforts, bought into a growth area and begun a progressive dividend.

Oversold?

[au24] 23/7/2014 15:19

Why the constant drop ?

[mortimer7] 22/7/2014 09:03

RNS this morning :-
River and Mercantile Asset Management LLP acquired 6,805,555 shares being 4.65%
yesterday.

[spaceparallax] 21/7/2014 12:35

Thanks Leo

[leoboy] 21/7/2014 10:11

update this am by Stewart Dalby of Oilbarrel :

[spaceparallax] 21/7/2014 09:29

These seem to be a sound addition to the Alkane portfolio.

[jane downs] 17/7/2014 22:10

Alkane Energy (ALK)Assessment… This deal is in line with Alkane’s strategy of building on its existing strong position in the power response market, with STOR currently estimated to be worth c.£100 million per annum in the UK.
Valuation…
We believe investors should approach Alkane with a two- to three-year timeframe in mind, given that this is the period over which the capacity squeeze in the UK electricity market could take hold. However, should this squeeze prove particularly acute, then Alkane shareholders could become significant beneficiaries. Under broker Liberum’s “tighter UK power market” scenario, earnings could hit 9p per share by 2016. Alternatively, under the more conservative “central scenario”, the broker still sees earnings hitting 7p by 2016. Key risks to the investment case remain the exposure to the vagaries of the energy market and the operational risks inherent in running CMM sites. “Buy”.

Today, 10:07 PM

[sammy_smith] 17/7/2014 11:18

Listen: Alkane Energy (ALK) - Acquisition and fundraising

Click the link below to listen

[18bt] 17/7/2014 07:23

So now we know why the price has been soggy of late. Nevertheless, sound acquisition at a sensible price increasing the company's scale. Financed conservatively by cheap loans with a bit of extra firepower raised from equity.

[leoboy] 15/7/2014 09:58

Oilbarrel article from 14-07-14 :

[sammy_smith] 07/7/2014 14:53

Listen: Alkane Energy (ALK) - Notice of results and trading update
click the link to listen

[spaceparallax] 07/7/2014 08:46

sounds all very positive

[mortimer7] 07/7/2014 08:45

Alkane RNS.
One off exceptional, after costs, pre tax profit of circa £9m and CEO comments
on trading "We look forward to a strong second half of the year".

[scruffee] 23/6/2014 20:54

David Kempton: 3 fracking great investments
8:50 PM