Zenith Energy Share Discussion Threads

[giant steps] 16/3/2012 11:38

CF12, are we falling though the 50 day sma or is this the support level ?

(tight bollies)

[mudbath] 16/3/2012 10:07

One can buy in size currently at 7.5pence.

[errollc] 16/3/2012 08:04

looky...the management are not going to continue to spent £400k per month unless there is an order in the very near term. The cash will never get to zero because the cash will be conserved and used for a reversal (if no orders are coming). I think orders will come but the market clearly doesn't...otherwise the shares would be higher!

[looky] 15/3/2012 20:30

This is nothing like Voller - that product (if it was really a product) had no chance of being commercially viable and would have needed numerous orders to achieve profitability. Zenergy needs one or two orders and they talking to some serious players and conducting trials with some of these.

Agree it is high risk but the risk/reward is great. i would say that they a 50% chance of getting proper orders and if they do then this is at worst a five bagger. If they do not then the share price is probably zero as the cash will have been used up - i am sure they keep trying (especially given the number of current leads) until the cash runs out

[giant steps] 15/3/2012 14:00

CF12, it's a very brave shout - huge risks imo (no advice intended)

[christianf12] 15/3/2012 13:50

Doesn't stack up?

The current cap is covered by cash.

No debt and 1 order will multibag the share price

I'd say it's high risk with massive reward.

Downside is cash which currently is probably 0-20% downside.

Upside is a return to former levels, 100p+.

[hugepants] 15/3/2012 13:27

If you want something valued at cash REC looks far better. Its profitable and yielding about 12%. ZEN doesn't stack up at all on risk/reward. Reminds me of Voller energy. With cash burn this high you want be buying at a large discount.

[christianf12] 15/3/2012 12:35

I see the order book just got better!

[giant steps] 15/3/2012 12:30

CF12, exactly - 18 months as previously stated (from October 2011)

I'm thinking we therefore have about 12 months cash left not 18 as you suggest !!

[giant steps] 15/3/2012 12:15

CF12, six months ago we were told they had working capital for 18 months !!

(nice try)

[christianf12] 15/3/2012 11:59

gs

The company have 18 months left of cash on current cash burn on no sales, just had it confirmed by SC.

[giant steps] 15/3/2012 11:54

CF12, will they run out of time (i.e. cash) given burn rate is £4m/yr.

Q1 is almost up so we have to discount £1m from the net liquid £5.3m (end 2011)
So net liquid may be close to £4.3m

Guess it is possible they will go to shareholders in 2012 for more money
and this be may hugely dilutive (but fair to those in at £1.20)

[christianf12] 15/3/2012 11:46

dunc, well least we agree on something. It's a free bet imo as you are covered 100% by cash and the upside is monumental.

If no deals come in next few months I will be pushing for the co to be sold for it's listing and tax losses which will cover costs etc and cash given back to shareholders which I would expect even then to be around current levels.

Like I said, a free bet.

[duncandisorderly] 15/3/2012 10:29

Means absolutely nothing.I've seen charts similar to this before where the price crashed the next day.
This is a deal or no deal situation,simple as.If SC gets the deals it will fly and if he doesn't it will drop but not a great deal,imo.

[christianf12] 15/3/2012 10:24

Just look at the two black lines on the chart in the header and see where they meet. There will be a move North in the next couple of weeks to breakout and the target is 18-20p.

[mudbath] 15/3/2012 10:22

My gut feeling here is that an upward surge in the share price lies ahead,accompanied by a return of huge share transaction volumes.News could follow subsequently.
IMO the share price would have settled at a much lower figure had there not been a real prospect of such an occurrence.
Not long to wait for the denouement anyway.

[christianf12] 15/3/2012 10:17

When was the last time the share price stayed above the 50 day moving average this long? : )

[giant steps] 15/3/2012 10:12

Agree dunc, it's very much flick a coin outcome

[christianf12] 15/3/2012 10:00

More than £0?

[dcroston] 15/3/2012 09:59

Just how much are potential orders worth these days?

[christianf12] 15/3/2012 08:51

Bottom of bowl already in. Look at chart in header, it is predicting news before end of March, not long to wait now : )

Capped at cash, zippo in for the potential orders. Free bet?