Alkemy Capital Investments Share Discussion Threads

[spaceparallax] 26/9/2013 15:33

the profiteering has nothing to do with the green deal and the national grid infrastructure. Those elements of power cost are passed onto the consumers, which is openly known and fair. The problem comes with the trickery involved in price-fixing between generator and supplier and the excessive profit margin that is plastered onto all of the energy prices even after the fat salaries, bonuses and share options that the senior management glean. There is no risk to them because they simply pass on the pumped up cost and profits. The only irony with the grren deal and infra element is that it helps boost the overall rate onto which they can add their percentage - if the profit margin were expressed relative to basic cost, it would be even more obscene.

[dan de lion] 26/9/2013 13:19

If Milliband wanted to save energy cost for the consumer he would need the subsides for "green energy" to be moved to general taxation where it is mainly paid by the richer strata instead of hitting the cash strapped poor like he did when he was Energy Minister by putting it onto energy bills, mind you he wasn`t trying to win an election then.

[spaceparallax] 26/9/2013 13:01

As pointed out on the 5 Live money programme - EDF haven't engaged in vitriolic rhetoric. The reason being that they happily operate within the price regulated French market and are able to recognise that it's still worthwhile. Of the others, let them hand over their market share to other smaller, fairer companies who are happy with a reasonable return on investment.

[downsize] 26/9/2013 11:01

Hopper, it may be MM shenanigans again which seems to be normal on this stock having an unusually wide spread. prices currently quoted at.....Ask 37.00pMid 36.50pBid 36.00pAnything going through below 36.5 will be listed as a sell even if its a buy.

[18bt] 26/9/2013 09:58

Rail operators rent the rolling stock

[spaceparallax] 26/9/2013 09:46

I don't see the difference - rail operators own rolling stock, but not fixed infrastructure. There's much to be worked out but I suspect that Govt will hold the whip hand if suppliers cannot meet their obligations at a fair price. The suppliers need to recognise that they can't have a captive market and a free-rein over price - business should not operate that way. In a truly free-market, businesses should be exposed to risk as well as profit potential. The current situation totally disincentivises the suppliers to actually work to obtain competitive prices - why bother when they can simply add their markup and pass it onto the customers.

[puffintickler] 26/9/2013 09:38

The idea of an energy price freeze is, let's put this kindly, bonkers.

Just proposing it is stupid because it will cause energy suppliers uncertainty which will provoke them to increase margins to compensate.

Pure and irresponsible electioneering.

[18bt] 26/9/2013 09:32

SP The energy companies aren't a franchise like the East Coast ML. They own generating assets etc. Nationalisation would be more like Railtrack with compensation for the owners - v expensive for guess who - the tax payer!

[dan de lion] 26/9/2013 08:56

I wonder if Milliband realises that he has wiped out investment in the electrical generating business just when the opposite was needed.

[investopia] 25/9/2013 15:15

We often see a shake-out like this prior to a big rise.

HopperAgain, seems like lots of trades going through wrongly marked over the last few days - thanks for the confirmation.

[spaceparallax] 25/9/2013 15:00

Nil,

It's probably the MMs playing games - another mob who need sorting out to restore the word market and replace mischief.

[hopperagain] 25/9/2013 14:37

My trade went through as a sell 13,333, however, it was a buy at 37.5p

[nil desperandum] 25/9/2013 13:27

Not sure why this should affect the wholesale price - which is all that Alkane care about...

[spaceparallax] 25/9/2013 13:14

Despite being a shareholder here, I actually agree that the energy mkt along with other essential utilities is not working properly. Currently the monopolies operate in a financial risk-free environment where they needn't care about the price they pay or their efficiency because they can simply pass it on. It really does need sorting out one way or another; whether that's via a price freeze is open to debate. Listening to Angela Knight yesterday was like a horrible flashback to the patronising drone of Thatcher.

[investopia] 25/9/2013 11:34

Yes, that's the scare.

Excellent buying opportunity, today IMO.

[bigtbigt] 25/9/2013 11:05

Red-Ed, SP, straw, camels back...

I may buy back in at sub 35p, or wait in case of 30p ...but that will be a bargain!!

[dan de lion] 25/9/2013 10:51

Price of electricity frozen if Labour gets in, not good news for ALK.

[spaceparallax] 23/9/2013 14:58

The trade declarations take some figuring out - today Buys are the declared majority and yet the share price dips!

[spaceparallax] 19/9/2013 14:23

reasonable trading again today with plenty declared as buys.

[spaceparallax] 19/9/2013 09:32

Leo, that balanced report is much appreciated.

[leoboy] 18/9/2013 18:41

some broker comments re price via Oilbarrel on 16-09-13 : Alkane Energy

one of the UK's fastest growing independent power generators, has come up with another set of strong figures for the first half year of 2013. This portends a seventh year of growth for the AIM listed group which used to describe itself as an "alternative" energy company.

The figures for 2012 were good, but the past six months has seen an exponential jump in activity and a substantial rise in EBITDA from a group that has firm growth from its core coal mine methane (CMM) gas-to-power business and its lucrative diversification into power sourcing and biogas. It also holds 800km2 of onshore UK exploration licences which could contain natural gas, coal bed methane and shale gas.

Broker Liberium Capital commenting on the results, says: " Alkane's share price is up 70 per cent year-to-date (YTD) compared to 21 per cent for the FT All Share Small Cap index. Whilst the strong recent share price performance may partly reflect the raised awareness amongst investors of Alkane's potential exposure to shale gas, in our view the existing business justifies a valuation up to our Target Price of 44 pence". The shares closed last Friday at 40.88 pence.

The "existing" business as Liberium calls it saw revenues more than double Y0Y to £11.1 million (H1 2012: £5.3 million). EBITDA was 54 per cent to the good at £3.3 million (HI 2012: 2.1 million.) The record revenues are, in part, driven by the company's seven Design, Build and Operate (DBO) projects and management caution that this has caused "an unusually large rise in revenue this half year which is not likely to recur in 2014". Revenue from this division totalled £4.7 million including £2.9 million from the Three Nooks farm refurbishment project in Staffordshire. Some of the DBO schemes are biogas. The increases in revenue and EBITDA fed through to an EPS of 1.43 pence against 1.06 pence for the comparable period.

The core CMM gas-to-power business is in robust health. Following two acquisitions of fellow CMM producers– Greenpark in 2012 and Maltby Colliery earlier this year-capacity has increased substantially. Maltby came on stream more quickly than expected and generating capacity has risen by 11MW to 81MW with electricity grid capacity at 100MW.With this extra capacity output rose an impressive 44 per cent to 94GWh. Operating profit for the period (which was £1.7 million against £1.2 million) was helped by firm prices. Average baseload power prices achieved in the period were £53/MWh (H1 2012: £52/MWh).

The group now operates from 22 mid-size (up to 10MW) power plants across the UK, 15 CMM only, 5 mains gas only and 2 using both fuel sources. The five mains gas only are important they means that as CMM declines at any one site Alkane retains valuable generating capacity and a grid connection which can be redeployed to power response. Power response sites are connected to mains gas and produce electricity at times of high electrical demand or in order to balance the electricity grid. Prices here are very good. Alkane now operates 30MW of power response on mains gas.

Elsewhere on the portfolio the potential coal bed methane joint venture with Aberdeen Drilling Management will not be progressed, but the company remains committed to early stage evaluation of its shale gas resources on the 800km2 of licences it holds.

House broker VSA has not given a prediction for profits before tax but it forecasts an EPS of 2.54 pence/share for the full 2013 year, almost a doubling of the 1.43 pence halfway stage figure. The broker maintains its coverage as a BUY, with a target price of 48 pence.

[downsize] 18/9/2013 17:29

With an unusually wide spread the most likely reason for the share price holding up is that a sizeable proportion of these trades are in fact buys. Trades are all showing up as sells as they have been struck below the mid price.