Australian (ASX) Stock Market Forum

CFU - Ceramic Fuel Cells

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Smurf1976 said:
It is not profit as such. Whilst the retail price exceeds the marginal cost of supply (ie the cost avoided if consumption is reduced or households generate some of their own power), the extra cost is largely needed to cover the fixed (non-volume related) cost of maintaining the network.

That is, half the cost of supply (roughly) would still exist regardless of consumption levels and that is my point. This cost must be recovered somehow, and if net consumption is going to seriously fall then that precludes recovering the fixed costs in the conventional manner on a cents / kWh basis.

It's like how the car costs a lot of money just to have sitting there even if not used. Those costs have to be paid, by whatever means, whether the car travels 100,000 km or just 1 km per year. Trouble with electricity is that if you recover the costs on a cents / unit of consumption basis as is normally done, it all falls apart economically if consumption falls in a big way. Either that or charges have to be massively hiked which hurts the poor, renters etc unable to lower consumption levels. :2twocents
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I see,
whats the breakdown of all this ongoing maintenance, ie wheres the money going.?
I have lived in the same street for over 10 years, theres never been any maintenance work.
Is it the power plants or high transmission lines being maintained?
Can these costs be cut/avoided by using a lot of Bluegens?
So do you think by doubling the price of electricity this problem could be overcome?
Thanks.:)
 
is it any news out today? price gone up to 0.2 with about 9m volume. It looks like a interesting move today.
 
brty said:
A hint of which direction it will go is after the books close on the new issue, before the announcement of how it has gone. If a large holder has not taken up their entitlement, then they are likely to sell their other stock, because they know the announcement of them not taking up the entitlement is a negative for the market.

brty
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It looks like that the opposite has happened. Big buyers jumping in early, not even waiting for the rights to close. Very nice. I have taken up my rights and almost do have my house on it. (Well not really, but a big chunk of my spare capital, now my 3rd largest holding):)
 
Knobby,

It looks like that the opposite has happened. Big buyers jumping in early, not even waiting for the rights to close
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Share price rising in the last couple of days before the books close, what a surprise :rolleyes: Can we wait to see what happens after the books close as I mentioned earlier??

brty
 
Have noted today advice that four directors have increased their share holdings by a total of 1,796,666.

Does anyone know what is happening?

Are we being kept in the dark?

Is there an announcement pending?
 
Ine director took more than their share of rights, one less the others equal.
Generally neutral result on that front.

Price has held up which was against brty's prediction but not all Australian rights taken up. Also generally neutral result in my opinion.

I would say there is not going to be an announcement in the very near future.
 
One would have to say that the rights issue was a bit of a failure with only 44% of Australian holders taking up the offer, and now the double whammy of shares trading at a reasonable discount to the issue price...probably a trading opportunity coming up for the punters, but not really a great outcome for the long term holders.
 
IT could be argued now that there is going to have to be some positive news flow now, whether it is big news or not.
If they have tapped the market once again, got a 44% take up and need to raise again, there is not much upside ahead.
It really looks like a worrying situation and hopefully they aren't forced into shortcuts in quality to bring forward the roll out / unfavourable sale contracts etc.
but there are a few positive broker recommendations, so any good news may be all that it needs to go for a bit of a run. Just got to keep an eye on the cash consumption now.
 
Not much happening here, SP has been pretty stagnant for a while.

I heard there's an article in the Financial Review with an interview with Brendan Dow. In it Dow mentions there are hundreds of orders in the wings which should be finalized by the end of this year along with a 25 unit order from Energy Australia that should be signed within the next two weeks.

Might explain the small lift in SP this morning.

cheers
 
MACCA350 said:
Not much happening here, SP has been pretty stagnant for a while.

I heard there's an article in the Financial Review with an interview with Brendan Dow. In it Dow mentions there are hundreds of orders in the wings which should be finalized by the end of this year along with a 25 unit order from Energy Australia that should be signed within the next two weeks.

Might explain the small lift in SP this morning.

cheers
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If I recall correctly, orders coming in from Germany, US and the NSW Govt. CFU is shifting its operations to Germany.
 
Given EWE is CFU's "longest-standing customer and partner" it shouldn't be too long before the other energy companies finalize in-house testing of their trial units and decides to(or not to) place bulk orders.

I think this is a good indicator that CFU is succeeding with bringing their product to market, one of the biggest hurdles they have had to overcome in the eyes of investors.

Nice to see a decent sized order. When it goes unconditional and others start placing bulk orders we should be in for some good upswings in SP:cool:

cheers
 
Nice post today re: electric car charging station using fuel cell technology. A classic use for this technology.

Combined with definite interest by various electricity retailers, it is only a matter of time.

Note, they announced this upon installation, not the order. Have we got a nice surprise for the half yearly coming??

I have bought a few more, lucky my wife trusts me as I have put my neck out on this.
 
A bit of a SP slide today

Any ideas ?????????????

Is there a pending announcement that we do not want to hear?
 
kingkev said:
A bit of a SP slide today

Any ideas ?????????????

Is there a pending announcement that we do not want to hear?
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Bit of a slide today??? More like a bit of a slide for 18 months:eek:.

On a positive though it has rebounded quite quickly so far today, be interesting to see where it closes.
 

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Been off air and catching up. There seems to have been plenty for CFCL to report, lots of promising signs, but the big orders have yet to arrive. They are spending $ and back of envelope calculation gave me about 16 months (5 quarters) cash left*. Is that a reasonable amount of reserves?
I think my average holding is 21c, so their price (13.5) is attractive.

*Please do you own calcs I am no expert.
 
jbocker said:
Been off air and catching up. There seems to have been plenty for CFCL to report, lots of promising signs, but the big orders have yet to arrive. They are spending $ and back of envelope calculation gave me about 16 months (5 quarters) cash left*. Is that a reasonable amount of reserves?
I think my average holding is 21c, so their price (13.5) is attractive.

*Please do you own calcs I am no expert.
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Frankly the cash reserves should be plenty. If they don't get the big orders this year, then something is wrong. Maybe I am foolishly optimistic but I am really expecting a massive amount of orders soon when they finalise the production.
 
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