I understand that it is a development stage company and has lost $19m in R&D, stock issues etc.... I see the same thing if investing in a pre-revenue an oil or mineral exploration company. I also understand that it has recently acquired its first two operating plants to take advantage of that R&D and thus will move from being a development stage cash burner to a revenue producing cash generator. Cut through the hype etc...., what do we think of the underlying company and its management team? I also like Greenko PLC, a UK listed Indian independent power producer which the Clenergen CEO built and took successfully to market making money for its shareholders. Clenergen seems to be a UK based company and the majority of the board are UK based with decent track records. My one little snigger is that the acting CFO was very senior at BP!
I have read standard SEC boilerplate risk warning before. Much the same can be said about Plus, the lower end of AIM, Euronext etc.... I am thinking more interms of a long term investment. It may be that it is overvalued at the moment. What do we think is the correct valuation, and what is consequently the correct price to buy in at? As for the fact that the research report is paid for by the company, why is this a surprise. Until you get to very large companies where the churn on the stock is so large that large brokerage houses make make large commission volumes and consequently publish research to drive trading to their market makers, all research is paid for by the company. Research by a companies NOMAD or financial advisor is paid for by the company. There are number of research houses who produce research paid for by companies such as Edison Investment Research which are well respected. I have not heard of the guy who did the note on Clenergen, but I am not that familiar with the German market.
Also views on other biomass plays, Greenko, Helius, & other Indian independent power plays such as KSK Power.
