hot stock , page-14

re: hot stock ...av... av...

I have previously commented on the "German" equation...and yes, a certain degree of manipulation came with it (or perhaps is still to come with it)...a shame therefore that beneath all the "noise" there is a real turnaround story unfolding with SOO.

By the way, I do not believe the German’s have finished…but that is another story!

I find your reference to oil companies interesting. While obviously not as exciting or readily able to justify sudden spikes through drilling successes and the like, companies such as SOO can still see sudden re-ratings for genuine reasons…the impact on SOO going forward from the almost exponential growth in this sector for example, is not unlike the impact on oil companies of a rising oil price.

Basically, greater support for the renewable energy sector, makes SOO’s future business model far more robust...and by extension, should help support higher market valuations in the interim.

As for your comments regarding income breakdowns...I think you will find they are currently experiencing a rapid increase from their overseas operations...this I feel is a significant factor.

The Australian market, although reasonable, will fade into obscurity once/if they can generate the sorts of sales expected (hoped) from their European expansions...I suspect the recent enthusiasm from the "Germans" might be a clue to the sentiment existing over there for this particular sector.

To be fair however, there really is nothing new here…the interest for renewable energy and for companies involved in this sector has been slowly growing for some time now…what is different however is that a certain “awareness” of this sector has suddenly started to flood the wider market, just as it did for many marginal oil companies when oil hit $40 for the first time.

There is now government and large corporation money flowing into this sector in substantial levels for the first time…some of this is in the form of subsidies, whilst others are in the form of direct investment.

The sector is very different now for it’s participants than it was just 5 years ago.

Cheers!