Member Info for Mikemine

As far as I can see AIM is dominated by short term traders. They partially took it up and saw the SP had run out of steam and began to take profits. This has led to more traders jumping on the bandwagon and selling. Those same guys will take it up again on the next piece of good news that will inevitably come. In the meantime anyone who thought they had missed the boat could pick up shares at this level and hold long term. Its like Dodge City out there and you either take part or sit back and ignore the gyrations. Ultimately value will come through. Difficult to watch though.

The company itself is no different from what it was a week ago. The story hasn't changed. There has been no bad news.

I've just revisited the video and I suggest that everybody does the same if you've not already done so. On more detailed listening it turns out that I might be wrong in suggesting that we might not hear of more deals for a while. I hadn't taken it on board that the £120mn Scott was talking about was for projects "in the next 12 months". Judging by the speed that the German financing was put together, confirming the £120mn may be just around the corner swiftly followed by announcements of the aforementioned projects that RED have lined up. Things seem to be moving quickly, unbelievably so for a small company like RED.

FC, know what you mean about Market correction but I don't think its due just yet. The Global economy is still ticking along despite Trump but we are due for a downturn and the trouble in Italy hasn't come to a head yet although I think it will. That will be a shock to the financial markets and all that funny money they have been printing will be worth considerably less I reckon.

In the meantime RED is having a good run and quite rightly too I think. I like Scott's measured calm approach to interviews and the information that has been coming out is first class. Big projects with financing deals, Whats not to like? I'm sure you'll make money short term but the big one will be for LTHs IMHO. Good luck anyway.

I've been having lots of trouble getting on to LSE chat sites. Sometimes its OK but often its very slow or fails entirely. I'm using Safari. Anybody els having a problem?

OK Pinecone. Here's one.

2x565K buys today. Yes there are some inevitable sells by traders taking their 10% but someone is tucking away quite a few.

The 10p resistance has been breached. I was hoping that a chartist (Averey?) might come up with what might be the new resistance point. Zak Mir was talking about a clear run to 12p but he's not that reliable.

From the company it has been all good news and things seem to be happening apace. All those flow machines will take a lot of organising but its a problem Scott must welcome.

Scott says the next phase is execution and that will bring in the cash. I'm thinking more and more that we won't need any extra funding by way of dilution. If we do I expect it to be minimal.

I don't think we should expect much more on the "new deals" front for a while. RED has more than enough to get on with without any more orders landing on the mat. Having said that, RED expanded the sales and marketing side and salesmen do like to make sales so who knows. I spoke to one the salesmen a couple of weeks ago and he couldn't wait to get to OZ in October, RED are exhibiting there then, to capitalise on the "enormous interest" they have received from down under. He was very enthusiastic at the prospect so who knows what will come out of that.

Well thats the 10p resistance gone if it holds for a couple of sessions. It looks very much like momentum building. Where's the next stop chartists?

Shininglight, what can you say except wow. I can't imagine how big this can be.

I've been out most of the day so thought I'd have missed the action. Despite some hefty buys the SP has not moved much from 08.00 so I'm surprised. There will have been the usual sell on the news brigade but overall the bulls have it. 10p seems to be a sticking point but with such buying it won't be long before that is taken out IMHO.

Today's RNS is a game changer in my book. Serious people are backing RED's business model and these guys will have gone over it with a fine tooth comb. I'd be very surprised if Scott hadn't been waiting for this before wrapping up some other deals that have been hanging about. I expect some more good news before too long. The speed from the releasing news of the German order (26th July) to getting the funding has been very impressive to say the least. This is a company in a hurry and one that gets things done.

I'm thinking now that they may not need a fund raise. The reason is that, with the declared finance deal and more to come, the orders that should accompany it might contain some up-front money, deposit if you like. Its not uncommon. Also there might be some sort of arrangers fee with Germain deal. All positive stuff.

Totally agree OldFool13. The finance was a doubt about the order firming up and now its gone. I know the naysayers will say the finance is conditional so is not real but there can be little doubt it will come through. Now RED are looking at finance for another £120mn worth of orders. At last we can see some figures and they are big.

Seems like RED is in the right place with the right product at the right time.

Did you guys listen in or is there a transcript somewhere so to speak?

So the reality is much clearer now. RED are competing against 5 other entities for a £300 mn project fund over a 2 year period. They are also cleared to compete for other projects throughout government departments if and when they arise. Not a bad position to be in but there are no firm orders as yet.

What we have so far is a proper order from Anglian for generation 3 models but we don't know what value that is but it should lead to other orders from Anglian. We have a an intention to purchase from Germany subject to finance which RED have to organise if I've read it right. And now we have been sanctioned to compete with others for various governmental areas with a specific £300 mn project fund that is on the table.

There is other stuff going on in Africa and OZ. Plenty of potential but revenue looks a bit sparse. We'll see whats in the interims.

This gives some perspective to the announcement.

https://twitter.com/energystoragenw/status/1039798250172305408?s=21

Seems RED is one of six approved suppliers.

From Essentia's website

https://www.essentia.uk.com/news/essentia-launches-two-brand-new-frameworks-designed-to-simplify-public-sector-energy-management-and-boost-efficiencies/

They seem to be a catch all body trying to streamline procurement of all sorts of things. A phone call to the contact mentioned might give more insight. I can't make that call at the moment. A bit tricky at home so someone else might want to make that call to see how they see the inclusion of RED.

Yes the interims could be very interesting. What has been lacking in the past few RNSs, good though they are, is any figures to go with sales. Difficult to get a handle on how well we are doing. All very positive stuff though.

On another subject, does any body know what our production capacity is? We have 1000 unit order lined up which seems a lot on engineering to me. I don't have any idea how long it would take to manufacture these. Anybody know?

Loosely, I'm not so sure about that. The Americans work to a different mindset. They are an optimistic, can do bunch who won't want or expect to wait 3 years to check everything out IMHO. I think they are probably planning their next 4 plants or so now and will see where they get the best advantage and speed to market and then pick the best one out of the bunch. They have a lot to put in place before they can go ahead so I wouldn't be surprised if they started the process before they got the go ahead with Lakeview. It doesn't mean I expect an announcement soon but it wouldn't surprise me.

OK, so where are we? The almost 30% momentary drop and subsequent weakness was all due to the part of the RNS that shouted at us IMHO. They might shut the plant.

Lets now consider that possibility which is lets say worse case scenario. There are cons and believe or not pros. One of the pros is that VLS's cash burn should improve as they won't need to support Envia on a daily basis. Also they have staff seconded to Envia which will be withdrawn and either used elsewhere or let go. Unfortunately the list of cons is a tad longer. VLS will not get back the $13mn loan, they lose their demonstrator and must lose some credibility.

I don't think the income stream would have been much as its got to be split 3 ways but it might have been. To me, as I'd almost written off the loan in my mind, I think the biggest loss is the demonstrating capability of the plant but to offset that the reactors have proved themselves and cash burn would improve.

On the other hand, if the plant gets in to production again and get to be cash flow positive, cash burn would improve, the loan might be serviced at least and the demonstration capability would be maintained. I know what I'd go for but worse case is far from catastrophic. The other projects are unaltered and Red Rock might announce more new plants.

Any comments?

Wulbert, I feel your pain but I'm sure you'll come again. This has been a thoroughly nasty experience for all of us but it might still come good especially from these levels.

Renewables must be part of the future IMHO so its the right sector from the investment point of view I reckon. If you're still interested in it try looking at RedT Energy ( RED). Its an interesting company. I'll say no more about it as I'm sure you are fed up with people overtly ramping up shares. Have a really good look before you make any decisions and don't take any notice of charts is my advice. AIM is news led and we have certainly learned that the hard way.

Good luck in what ever you choose to do.

I agree. Could turn out to very shrewd investment. Good luck.