Velocys Share Discussion Threads

[haydock] 08/2/2017 09:12

With thanks to RG. on 3i.
Share mag - cash flow positive mid 2017

46Gillingham
2
Smaller scale gas-to-liquids specialist Velocys (VELO:AIM) gains 14.9% to 83.3p as it produces the first product from its first plant in Oklahoma City.

The ENVIA Energy GTL Plant is a joint venture between Velocys, Waste Management (WM:NYSE), NRG Energy (NRG:NYSE) and Ventech Engineers.

BIG BREAKTHROUGH

GTL is the conversion of natural gas or other gas-based hydrocarbons into liquid synthetic fuels. GTL applications have, in one form or another, existed for the better part of a century but currently can only be commercially deployed at large plant sizes (30,000 barrels per day (bpd)) which can require upfront capital investment of $3 billion or more.

Velocys’ small scale GTL technology, based on the established Fischer-Tropsch (F-T) process, can operate efficiently at anywhere between 1,000 to 15,000 bpd. This can transform previously sub-commercial accumulations of gas into transportable and valuable liquid fuels.

SHARE PRICE SURGE

The company is backed by Chelsea FC chairman Roman Abramovich. House broker Canaccord Genuity has previously argued ENVIA might need to be up and running for as little as six months to demonstrate the process is commercial. The shares have reacted as the company makes progress towards commerciality and unveiled an update on its strategy. They are now up more than 170% since we highlighted their appeal here.

VELOCHART

Canaccord reiterates its ‘speculative buy’ recommendation and 110p price target, analyst Alex Brooks comments: ‘Whilst the plant is yet to be fully operational, we believe this step is the most significant de-risking yet reached. We now expect that the plant will have reached steady production and be comfortably free cash flow positive by the middle of 2017.

‘This is a major milestone event for both Velocys and the entire small-scale GTL industry and we expect it to trigger further positive share price performance today.’

[runthejoules] 08/2/2017 08:30

Ok, I'm invested having topsliced slightly yesterday, so I guess I'm an investor rather than a trader now! I plan to hold till the technology is making money & then re-appraise, as long-term, I see this as a transition technology. It can be used for fracking though I don't think that's what mgt seem to be pushing, which is itself cleaner than coal or oil, and even cleaner with this. It will be used to clear old refuse tips for housing etc: this won't last more than c.50-75 years as we'll hopefully all be recycling or reusing by then - or relying almost solely on digital reality. In 15 years even heavy goods vehicles will be EVs so little use for diesel. They will hopefully develop the jet fuel technology, which will be very useful until planes are made of graphene and batteries/liquid nitrogen are light enough to power them. Hell, there will probably be hyperloops under the Atlantic by then. (Damn I wish I hadn't sold out of TSLA)... so, Erogenous Jones, I doubt very much these technologies will be useful by the time your son draws his pension, but the company may well be bought / diversified by then!

[sheep_herder] 08/2/2017 08:28

Bloody hell, proper luddite.

[gac141] 07/2/2017 22:10

tongosti

Erogenous Jones7 Dec '16 - 10:52 - 3289 of 3657 1 0 (premium)
I have added a couple of tranches to 2 SIPP accounts, first, just before 10 and the second 10 mins later.

EDIT. Have added another tiny tranche in elder sons SIPP. Fingers crossed that the business is still around in 45 years time when that will be drawn against!

tongosti8 Dec '16 - 09:39 - 3290 of 3657 0 0
Bad move am afraid.

At this stage, this company may be good for short term trading purposes only.

otherwise it is still a dog with fleas

gac141 Feb 7 -Not sure I wish to take your advice tongosti. Hoped we might have left you behind on the previous board. EJ has trippled his money. Well done EJ.

[tongosti] 07/2/2017 19:57

It will only be so when hard cash flows in and we see sustainable revenue; earnings and free cash flows. I am not saying this company will not get there but between now and then there is still a wide gap

[fern5] 07/2/2017 19:51

Surely its now more than just an idea Company???

[gac141] 07/2/2017 17:33

Malcy's Blog

Malcolm did interview David today his words "Most interesting" Write up later....

[realfreeloader] 07/2/2017 14:25

Jim Slater - The Zulu Principle.

A precis of the chapter Something New - which seems particularly appropriate.

"Something new is a highly desirable (but not absolutely mandatory) criterion for investment"

"There are four main categories of new factors which are of sufficient importance to have a major impact upon share price"

1. New Management - "The most important of all. The reason is simple - the impact of excellent new management can be both far reaching and ongoing. If new managers of calibre take control of a company, their efforts are likely to bear fruit for many years to come."

2. New protocols or new technology. "These can also be ongoing. I suggest that when looking for something new you only consider products that are central to the main activity and will have a major impact on future earnings. Is the product patented - a vital factor you should always bear in mind."

3. New events in the industry including new legislation

4. New Acquisition

"An added advantage of something new is that it provides a ready-made story for the stock, which helps the shares to gain market acceptance. A good story is most important when present fundamentals are poor, as future hopes aided by the story will be the fuel to drive the share price upwards."

[gac141] 07/2/2017 14:12

Velocys Video on You Tube..

I will have it added to our header..

[gac141] 07/2/2017 12:04

Why Velocys has nearly trebled in less than six months
06 February 2017, 12:02
Smaller scale gas-to-liquids specialist Velocys (VELO:AIM) gains 14.9% to 83.3p as it produces the first product from its first plant in Oklahoma City.

The ENVIA Energy GTL Plant is a joint venture between Velocys, Waste Management (WM:NYSE), NRG Energy (NRG:NYSE) and Ventech Engineers.

BIG BREAKTHROUGH

GTL is the conversion of natural gas or other gas-based hydrocarbons into liquid synthetic fuels. GTL applications have, in one form or another, existed for the better part of a century but currently can only be commercially deployed at large plant sizes (30,000 barrels per day (bpd)) which can require upfront capital investment of $3 billion or more.

Velocys’ small scale GTL technology, based on the established Fischer-Tropsch (F-T) process, can operate efficiently at anywhere between 1,000 to 15,000 bpd. This can transform previously sub-commercial accumulations of gas into transportable and valuable liquid fuels.

SHARE PRICE SURGE

The company is backed by Chelsea FC chairman Roman Abramovich. House broker Canaccord Genuity has previously argued ENVIA might need to be up and running for as little as six months to demonstrate the process is commercial. The shares have reacted as the company makes progress towards commerciality and unveiled an update on its strategy. They are now up more than 170% since we highlighted their appeal here.



Canaccord reiterates its ‘speculative buy’ recommendation and 110p price target, analyst Alex Brooks comments: ‘Whilst the plant is yet to be fully operational, we believe this step is the most significant de-risking yet reached. We now expect that the plant will have reached steady production and be comfortably free cash flow positive by the middle of 2017.

‘This is a major milestone event for both Velocys and the entire small-scale GTL industry and we expect it to trigger further positive share price performance today.’

[runthejoules] 07/2/2017 12:03

Hah hah, 9% - 3% up on the day, we should have sold the bloody lot at 8.03am, the spread was 1p! Still, it will grow back, as my barber used to say...

[arf dysg] 07/2/2017 11:50

Have you seen the latest quote?





Under "Velocys Forums and Chat", it lists some BBs, and next to each one, it puts the number of posts on that thread.

The number of posts is quoted to TWO DECIMAL PLACES!!!

Notice the 14.00, 3,655.00 and 3.00 !!!




Years in Development – The Small Scale GTL Revolution has begun 14.00

Years in the Making- The time is Now 3,655.00

Zak Mir BULLISH on Velocys PLC (VLS.L) 3.00

[realfreeloader] 07/2/2017 11:46

Exciting times - Amongst other projects VLS are pursuing I have no doubt Green Sky Mark 2 will now happen.

The technology is now being proven at Oak Hill. The new UK carbon budget is to include RTFO for renewable aviation fuel.

"As a step towards encouraging the use of low carbon fuels in aviation, we propose to reward renewable aviation fuels under the RTFO. There would not be an obligation to supply a certain level of fuel but suppliers would be able to claim Renewable
Transport Fuel Certificates (RTFCs) for eligible fuel."



Initial engineering study completed.
RNS 24th February 2016

"Velocys is partnering on this project with a company affiliated to its largest shareholder, Ervington Investments. The partners have commissioned an engineering study that is being carried out by Amec Foster Wheeler, the international engineering, procurement and construction company."

Ervington will in my opinion provide major if not all funding for the project.

[sheep_herder] 07/2/2017 10:28

Animal feeds?

[gac141] 07/2/2017 10:19

As far as I am aware there is plenty of positive news-flow to come from Velocys..This is just the start.... Let's see what Malcy has to say today.

Cash issues are not a concern at the moment with the new strategy Maybe later in the year but share price with be a lot higher by then..

[pugugly] 06/2/2017 20:18

Brucie5. Very true. My first buy are in profit but I made the mistake (with hindsightof topping up after the higher placings) So it could be more a question of cutting losses - However vls can move very fast both ways.

You have a good evening.

[brucie5] 06/2/2017 20:11

Pugugly,

If you're lucky enough to be in this kind of chart, my advice would be not to overthink it. Just make sure you'd not be blown out the water if for some reason the share price tanked by 50%. Then if you're happy with the risk, let the share price rise as it will. As they say, 'Cut your losses, but let your profits run'.

I've lost money breaking both rules; but the most by far, was by breaking the second.

But of course I don't know your circs, or what price you first got in.

[pugugly] 06/2/2017 20:00

Another possible drag on the vls share price
"More pipelines form part of a wider, deflationary trend of rising energy supply that is likely under President Trump (see this). That means not only gas markets, but also coal miners and even power generators will feel the effects as those ripples grow more intense"


Declaration - A vls holder - and still partially under water so I need a higher share price but just looking a possilbe potholes on the way there -

See also >

[chadders] 06/2/2017 19:13

gac141, thanks for the new thread. Hoping its lucky as well as informative.