LON:AEG - Active Energy Group - investors-group analysis

Hi all

My first post under the tag 'investors-group' as promoted by one of the biggest promoters of Steemit, @stephenkendal.

7 months ago, I wrote a blog titled 'Active Energy - Warren Buffet is interested and so am I' which managed 17 views and 4 votes. Lets see if I can beat that this time!..

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Who are AEG?

(LON:AEG) Active Energy Group (http://active-energy.com/) is a ‘next generation international forestry management and biomass based renewable energy business'. source

What do they produce?

AEG have developed a 'pellet', produced from from forest waste which can be dropped into existing coal power-plants without and retrofitting or upgrade costs to the station owner. To give an example of costs to upgrade a Coal power plant to be able to use other pellets currently available on the market, Drax estimated a cost of 1.1 billion dollars to retrofit half their plant in the UK to be able to use both coal and wood-chip pellets.

There is clearly a gap in the market for AEG's pellet as it requires a drop in alternative to coal, meaning no work is required to take place on the existing coal power plant.

Who is interested?

At the beginning of 2017, Bloomberg reported that 'Rocky Mountain Power, a unit of Warren Buffett’s Berkshire Hathaway Inc., will test a new biomass fuel that may reduce the amount of coal being burned by power plants.'

These tests are due to take place over the next couple of months and should prove (as they have alreaddy) that AEG's product is as good as coal as an energy source, and infinitely better for the environment.

Price analysis

As we can see, the share price hit year lows (and 3 year lows) in September, as the company adjusted its main lines of business to focus to 'CoalSwitch'.

However, we can see bullish indicators in the Ichimoku chart (Kumo breakout), shown with a green 'B' as the price rises above the Kumo (cloud) - the red/green (bearish/bullish).

Also, looking at the 'traditional' chart with 20/50/200 Standard Moving Averages included we can see that the price is sat on the 200 SMA and has followed the 50 day SMA up to today's price of 2.4p.

Price catalysts and targets

As well as purchasing the land which will source the pellets and producing the pellets, the company is building power plants which will use this product. Recent news has suggested that the first CoalSwitch plant is to be completed sometime this month.

As as stated above, Warren Buffet's tests will be completed in the first quarter of next year.

Also, the company is currently waiting for a licence to obtain the rights to use 300,000 acres of land in Newfoundland and Labrador, Canada.

All three items above, and in particular the land rights licence, have the potential to spark major interest in AEG.

With this information, I set a price target of 11p on AEG shares, which is a 458% upside from the current price.

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_{Disclaimer: I hold shares in AEG and I am not a financial adviser. I invest in ‘green’ companies with blue sky potential.}

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Thanks for reading

Asher @abh12345