Ceres Power continues to push on

UPDATE (2) – Close on the highs looks in order and management did a great job of shaking out the non believers and weak holders. Keep buying!

UPDATE – RNS just out. “initial tranche of fundng” – it looks like staged capital raisings as they reach technical milestones and prove up commerciality. Our money is on a 3rd party industry company providing the bulk of the funding and so avoiding major dilution to existing holders. Any move back towards 10p and we will be adding again.

The shares were shaken down and are already on the rise again. Per below someone, somewhere clearly knows more.

Ceres Power Holdings plc

(“Ceres”, “Ceres Power” or “the Company”)

The Board of Ceres Power notes the recent movement in the Company’s share price. The Board is not aware of any significant change since its announcement on 16 August 2012 and continues to work towards raising an initial tranche of funding before the end of Q3 2012 to continue to meet the Company’s planned expenditure. The Company will update shareholders in due course on progress in this regard.

As announced on 26 July, the Company remains on-track to delivering its target of a global cost leadership mass market micro-CHP product and will provide a technical update in due course on continued progress made to date.

The volume in Ceres in recent weeks has been particularly heavy with around 10% of the company’s shares turned over – I am beginning to wonder if stake building is occuring…

Following the positive update the company put out on the 26th July it is not beyond the bounds of possibility that the Company has been approached by another industry player as an alternate route to the new funding round that the company has to undertake. In fact, with the shares trading still only around current cash then the IP and technology is valued at nil – something that British Gas & Itho-Daalderop no doubt take issue with given the strong backing by these 2 players and commitment to purchase the final product that has been made.

I have spoken to a source close to the company and was encouraged that it seems management are not intending to throw existing shareholders under a bus and that in fact the funding that has been flagged is not likely to be massively dilutive to them – I can only therefore surmise that they have a 3rd party industry capital injection/licensing deal lined up, likely at a premium to the current share price with perhaps an open offer to shareholders or they are in fact being stalked – the latter is probably not likely to be well received by existing shareholders as the massive opportunity will be snatched from them, even if an offer of say 25p was pitched.

The chart structure below shows a clear break of 12p and with a channel height of 9p so targets 20p+ in the coming days/weeks.

The company has refused to comment on the share price movement. But someone clearly knows something… For all those readers who followed us with our Conviction Buy at 5.2p – hold tight.

Editor