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Sentiment wise we could be in for another rough week with US inflation figures due out Thursday - the speculation is that the Fed may change its interest rate plans and bring forward rate rises if the rate is higher than they are comfortable with.

Hopefully Ocado numbers will impress on Tuesday.

Aquaesulis
If you look back tech stocks, including Ceres, have been falling for about a year now on inflation and interest rate worries.

Comparing CWR to OCDO - although they are in totally different sectors, they are both tech growth companies with low potential for short term profits - these are the companies that have seen the biggest falls in their SP's.

Personally, i think that CWR and OCDO are oversold and that they will bounce back soon but it seems Goldman Sachs are more pessimistic.

This is really Goldman Sachs assessment of where the market is heading - rather than specific to Ceres.

Hydrogen related companies are the ultimate "jam tomorrow" businesses.

So. its no wonder that with the sentiment so poor regarding inflation and interest rates that they are fairing so badly.

its certainly an up day today - Amazon's results were well received.

The problem is that this volatility is greatly accentuated by the SETS system of trading.

The SETS system is primarily engineered to find maximum liquidity and maximise volume - all the while we get these wild swings traders will be exploiting them.

Just take a look at the volume for CWR in January.

mrc
It really is as simple as that - you don't need to over analyse.

Bottom line is that ENQ - along with many other oil companies around the world - has been screwed by Covid.
Add that to the general lack of investment into the industry and its easy to see why the SP has failed to impress.

Now its a tough fight back with I guess mergers and acquisitions dominating.

AB has by all appearances done a very good job in his tenure at Enquest - he is very investable.

However, he has not been very lucky - Kraken hit peak production when Brent was at its lowest level and for that reason he has been unable to pay off debt and move on to develop new assets.

His principal mistake over the years has not been to get the hedging correct - this has considerably compounded his bad luck.

Thank you bilboburgler.
Roll on the first 20% of hydrogen in the gas main.
The incentive to action it now couldn't be higher - it would save every single one of us some cash!

bilboburgler
I heard somewhere that the small hydrogen particle size could be a problem with hydrogen leaking out tiny holes in existing natural gas pipes.
Is there any truth in that?

The one thing everyone needs to learn in the current energy crisis it to keep all options open, so putting an end to gas boilers has to be a big mistake.

We are fast approaching the point when their will be usable amounts of cheap surplus energy from wind and as more farms come on line there is likely to be times when wind power is wasted - so its logical to convert wind power to green hydrogen.

Initially it probably makes sense to use the green hydrogen in small grids for heavy industry in areas like Teesside, but eventually it could be fed into the gas grid if technically possible - but there may be issues with leakage, as far as I know this issue is still to be resolved?

Shorts are still high showing 11.04% for January on Euroclear - slightly up from December at 10.69%.

China leading the way with green hydrogen production.

https://www.energyvoice.com/renewables-energy-transition/384813/china-starts-up-worlds-largest-green-hydrogen-plant/

China leading the way with green hydrogen production.

https://www.energyvoice.com/renewables-energy-transition/384813/china-starts-up-worlds-largest-green-hydrogen-plant/

All the upside is with the high price of Brent - although this is tempered by the hedging - despite that ENQ should do well in 2022.

But, the downside is the poor production outlook - lower end is even below the 2021 dismal production numbers - its almost as though AB is expecting something else to break - probably Magnus.

Last three production estimates have been 57-63, 46-52 and now 44-51 - this doesn't predict a good long term hold.

To take advantage of the high oil price its probably better to look elsewhere especially as ENQ is still 7p off its year high and falling back.

New patent for the production of composite materials - I guess that broadly means bio plastics?

Bioplastics had a global market value of approximately 7.6 billion U.S. dollars as of 2021. By 2028, it is expected that the global market value of bioplastics will reach 15.55 billion U.S. dollars.

Please correct me if I am wrong.

Good luck to you all tomorrow - assuming T/A appears.

In the meantime enjoy -
https://www.youtube.com/watch?v=SpT0U-KDcXM

This seems very appropriate at the moment.

Looking a bit deeper.
ITX is traded by the SETSqx electronic trading service this is a hybrid between the electronic SETS service that larger cap shares use and the SEAQ service that market makers use manually.

The principal aim of SETS is to create liquidity in a stock.

SETSqx has been introduced for small caps with less liquidity with two methods of operation - see link.

Logically it would seem to me that the SETSqx system is probably pushing the ITX SP down to find liquidity or to put it another way increase volume.

But with so many shares in sticky hands this isn't working, but it still continues to try.

The old SEAQ manual system may well have served ITX better?

You can read the link and see what you think -

https://www.londonstockexchange.com/trade/equity-trading/trading-services/setsqx-and-seaq

Other tech shares are also doing well today after a down day yesterday - OCDO is leading the way.
Hopefully it will continue - NASDAQ is certainly looking much better.

its more a matter of opinion from Cannocord.
They have simply come to their conclusion that only one of the UK projects will complete in 2022.
They might be right - they might be wrong - maybe they are just being over cautious?

If one doesn't complete that will certainly limit the SP rise - just as it is at the moment.
Also delays could bring forward another equity raise.
Hence the caution.

The volatility - both ways - could just be the shorts closing in the run up to next Tuesday's results.

More savvy investors taking advantage of a low entry price.

https://www.lse.co.uk/rns/CWR/holdings-in-company-gmesi67yjt5yn0o.html