Zenith Energy Share Discussion Threads

[a.fewbob] 24/3/2012 20:09

Duncanddisordely,

Thanks, when was that conversation with Simon?

[duncandisorderly] 24/3/2012 10:56

Recommendations: 5
Company name : Zenergy Power
Ticker : ZEN.L
Current Share price : 8p
Shares in issue : 69 million
Current Market cap : £5.5m
Cash : c.£5.5m
Debt : Nil

Zenergy Power was formed in 2006 from the merger of superconducting experts Trithor GmbH in Germany, and a fault current limiter (FCL) research business 'SC Power Systems Inc', based in USA and Australia.

The resulting business is one of the leading experts in electromagnetism in the World. This skill set was, until recently, used to research and commercialise a wide range of technologies aimed at the clean energy sector. One of these products was the magnetic fault current limiter (mFCL), a device designed to protect electricity grids against the growing problem of power surges.

Zenergy's early FCL's used superconducting magnets to provide the magnetic flux necessary to saturate a high voltage mFCL. Whist highly successful as a FCL, the superconducting magnets have drawbacks in that they are complex and costly. Utilities have been slow to adopt them.

As research continued, they improved the efficiency of the their mFCLs so they require only a fraction of the magnetic flux originally thought necessary. This means that they now manufacture '2nd generation' mFCLs built with simple copper magnets, making them cheaper, smaller, and more energy efficient than their superconducting forebears.

As a result, Zenergy decided to focus all its efforts on developing and commercialising these new non-superconducting fault current limiters.

More information on our products, can be found on the product pages of their website :

Now led by a successful corporate turnaround entrepreneur Simon Cleaver and recently divested of its cash hungry German subsidiary, ZENERGY represents, imho, an unusually excellent opportunity to invest in a debt free and cash rich micro-cap company which has immediate scaleable prospects of benefiting substantially from its cutting edge patented technology.

One private investor called the CEO after they posted the results last week ( here's is the feedback :



I've spoken with Simon earlier today so thought I'd post what was discussed.

Keep in mind that these are my own personal notes from a telephone conversation and it's a summary only and hopefully gets over the pertinent points of the conversation.

I started off by asking him a few questions, so here goes.


1. Did the company discard with building the scaled up prototype (33KV)? If so, Why?
Yes, the company made the decision to not build the prototype. There was a delay in getting the people resources required to build and complete testing which would have delayed completion until around May time. They took a decision that a delay in building the prototype could impact orders, in that some customers may decide to wait for the completion before taking an interest and that was time they couldn't afford to waste. In order to de-risk the customer, the company will write a guarantee into any contracts regarding any build issues.

2. Does the cash position of £5.3m reported on 31 Dec 2011 include the £0.5m profit from of the sale of 11kv superconducting MFCL unit annouced 18th Oct 2011?
No, there is still £460k cash to be received on this sale. The FCL which was removed from AEP test grid has also been sold in January for £700k. Approximately, £150-200k of wire still for sale. Cash burn still around £350-400k.

3. Please can you clarify what discussions regarding a potential sale of a superconductive MFCL the company is referring to?
I was a little woolly on this but the gist of this was that it was an order for a 33Kv which ASL would build and profit to ZEN would be in the region of £0.5m. If the order went through, it was likely to be announced in March.

4. Last time we communicated, you stated that the company believed that GridON was in breach of Zenergy's patents. Does the company still believe this to be the case and has it received any response back from GridON?
Yes, lawyers have written to GridON and a reply has been received back. At this stage, they are not going to get embroiled in any legal action (that may change depending on what happens to the business in the coming months). They believe that GridON's FCL design is in breach. Just a few words on the patents because I had a few doubts whether or not they had been written specifically for superconducting technology. All patents specify a magnetic flux in the design and are not specific on superconducting or non-superconducting and therefore cover both.

Ok, they were my questions I asked. Simon was kind enough to elaborate on the potential order pipeline which I will give a quick summary on.

- There are more than a dozen leads at varying stages of discussion.
- Two potential orders from Russia for 20Kv FCL's are at the contract write up stage (nothing is signed). Russian market is huge.
- Potentially a very large order in the US (potentially up to 64 FCL's altogether)
- There are 2 potential orders in the UK (11kv I think).
- A couple of leads in Thailand .


Simon desperately wants this to succeed. The plan was to give it until January 2012 but he's decided that he wants to give this until March (AGM time ish) to see if he can make this a business. He'd like to get three orders by then. If he can't turn this around then he'll convert this to a cash shell.


Regards

[joeblogg2] 23/3/2012 11:40

Lets hope so and SC can deliver some good news before AGM.

[duncandisorderly] 23/3/2012 11:30

I think news is about to break,hopefully.Bring it on!

[mudbath] 23/3/2012 11:29

HELLO ??
Intra day positive movement is an unusual ZEN occurrence.

[rovi57] 22/3/2012 18:29

well the budget realy boosted shares - not

[mudbath] 22/3/2012 16:33

Nor me Dunc.
Probably edge up at the close(a bit).

[duncandisorderly] 22/3/2012 10:27

Don't like this Muddy.

[duncandisorderly] 22/3/2012 08:02

There obviously a seller who doesn't want to crash the price so they are letting it out in dribs and drabs.I hope they don't know what they are doing

[mudbath] 21/3/2012 18:42

It seems so peculiar that ZEN shares can be bought each morning at around 7pence and yet come the final bell the MMs' are actually bidding for the shares;at,for example, 7.45pence this evening.
Can anyone enlighten me on why we have this daily pattern?

[mudbath] 21/3/2012 16:28

Up to 7.45 pence to sell.!
Seemed a shame though to let more than 25k go though.

[mudbath] 21/3/2012 15:37

In fact,I am so convinced that there is dirty work at the crossroads occurring that I decided to trade the daily movement,buying 100k in total this morning @ 7.2pence and below in order to sell just before the close hopefully at a price sufficient to clear a 5% profit.
If the worst comes to the worst then my ZEN holding swells somewhat.
Just for interest's sake I will in future deal in 40k blocks in order to confuse the existing 40K operator.
Looks like a bit of fun.

[mudbath] 21/3/2012 15:23

The manipulation that I detect is,imo,softening up weak holders,with a view to an exit carrot to be dangled shortly in front them in the form of a 9pence share price
After all,it is no fun holding a share which day after day,week in week out,spends the intra day period in negative territory.

[duncandisorderly] 21/3/2012 10:47

I must admit I don't feel entirely happy at present.I would of thought if there was good news and with things being so imminent that the price would of risen.Just sit it out I suppose.

[giant steps] 21/3/2012 09:55

CF12, there is a gap at 5.25p, do you see it ?

[christianf12] 21/3/2012 09:49

There is a gap at 6p on your chart.

[christianf12] 21/3/2012 09:31

Yeah but only if 50dma was held, sorry.

[giant steps] 21/3/2012 09:30

CF12, but you had chartists saying 18-20p, tut tut !

[christianf12] 21/3/2012 09:21

GS, looks like it unfortunately.

[mudbath] 21/3/2012 09:20

IMO we have a totally false market here;with potential manipulation evident.
Strip out those intra day movements and the share price graph looks promising for a rise.
£1 to 1pence says ZEN end up level or positive by the close of play.

[a.fewbob] 21/3/2012 08:45

We need news of a sale.