AFC Energy - AFC - Share Chat

This company released news today that is worth a read.

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Well Sp will go down probably…
As Ey forom sofi says buy the rumour sell the news!

Balfour Beatty and Speedy Services were just at AFC. Let the commercial roll out begin, then see where the price goes.

Jack Evans
Major Account Executive at Speedy Services

“Amazing day at AFC Energy with the team from Balfour Beatty PLC today diving into hydrogen and battery storage power solutions. All part of our joint venture, Speedy Hydrogen Solutions.
Today we saw incredible technology that is paving the way for a greener future in construction and many other applications.”

AFC Energy

“Great to have the Balfour Beatty PLC and Speedy Services teams on site today to witness first hand our new 30kW H Power Generators working in advance of field deployments.”

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SP has been holding up well. There is also an open short of something like ~12M shares which could potentially magnify good news.

Hoping to hear something more commercial coming from AFC, hopefully beyond Speedy there’s similar sized orders/commitments waiting.

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How does an open short help the sp… i thought shorting was all about reducing the sp??

On riskreversal they talk about trades but talk about insurance as well for a trade! What! Confused

Because a short is ‘borrowed’ shares that they have to buy back at some point. Going by the notices/timings of the short, the majority of the short was purchased in the low teens. AFC is at 19p just now. If the stock rises there’ll be margin calls on their short.

I said potentially because they may have built up a long position also and their overall position isn’t just the short.

This is my understanding of it.

So if there was positive news and the SP went into the 20s and 30s, the short would be losing money and the shares inevitably need to be bought back.

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I worked for a company in mobile power plant many years ago and know its big business, even then there was a growing demand for clean quiet power generation in places like inner city construction sites. If AFC get the product right I can see it flying. That’s my professional engineer / amateur investor view :sunglasses:

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The short was opened last July by Helikon, a UK hedge fund, and has an average of about 12p per share for 16.5m shares, 2.21% of the stock. As the ask price is 19p it is already losing them over £1.15m.

Should the price go above 24p the lender of the stock could call in the loan due to the risk as the bet would be down as much as the price the stock was lent at. If that happened, the shorter would have to buy urgently in the market or off market, or if they have been collecting the stock at lower prices they would have to give that stock (or some of it) to the lender.

The Government short positions spreadsheet shows all positions declared and their history since they declared. Shorters must declare when they hit 0.5% of a stock or drop below it.

https://www.fca.org.uk/publication/data/short-positions-daily-update.xlsx

Helikon have four shorts running. They are in huge profit on ITM but only very recently shorted the other two. It’s likely that they pool their short positions. Combining the AFC and ITM shorts they are still in a huge profit overall, but with AFC losing them money and ITM going back up too, it is eroding their overall profits.

I do not understand why they have not closed out on AFC and ITM, unless the shorts are only there so they can drive PI’s out while they accumulate the cheap stock? Then when happy with their long position they close their short and wait for the price to shoot up, thus making double money by manipulating the share prices.

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So we should collectively all start buying afc and drive the share price up!!!

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Yes become one with AFC

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Big dip today

What’s the benefit in shorting a penny stock? Seems to me it’s worth next to bugger all if you’re right.

It doesn’t matter if it’s a penny stock or a FTSE 100 stock, you bet on the price going down with a return of up to 100%.

RE: AFC price, people probably getting impatient with good news. Results also due soon which will show how much cash has been spent.

But 100% of a shirt button is a shirt button.

I don’t think you’re following. The price or market cap generally doesn’t matter. A short bets on a price going down just as buying shares aims on it going up. The price per share does not matter. 1p or £100 per share, same thing.

If anything it’s more risky to short small caps because they can have a larger upside vs large caps that rarely increase in value in double digit percentages (or treble, quadruple)

Not trying to be rude, but it’s basic stuff. If you think because a share is traded in pennies it’s somehow worth less than a share traded in pounds, it’s something you need to get up to speed with. share value * shares in issue = value of a company. AFC could decide to consolidate their shares 100:1 and they’d be worth ~£16 a share, it doesn’t really make a difference to their prospects, profitability and people shorting, or going long.

Go look at Lloyds, they’re about 42p share and also a company the stock market believes are worth £27bn

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Perhaps I’m not following but is there need for snark?

If you had the choice of 2 stocks to short, and you are have the same confidence they are both going to drop by 25%, which one would you go for and why?

Company A, 1 million shares at £20,00 a share
Company B, 1 million shares at £0.05 a share

If the answer is B, I’m genuinely interested in why as I have obviously misunderstood the whole topic of shorting, and if its A then respectfully please wind your neck in

There’s no snark, just your cost of a button comment sort of means you’re making a judgement on something you don’t get.

Your original point was that AFC shares are not worth much per share.

I think your example says you’re still not getting it.

There is no difference between a company with a 1,000,000 shares at £1 (worth £1Mn) vs a company with 1,000 shares at £1,000. They’re both worth exactly the same… The stock market decides whether they’re worth more or less.

The monetary value of one single share is almost meaningless.

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If I borrow and short a single share which is currently priced at £0.05 then the max I can earn is if it drops to zero, which is £0.05. If I borrow and short a single share which is currently priced at £20,00, then the maximum I can earn is if it drops to zero, which is £20.00 (less a bit of interest etc from borrowing it). What am I missing?

(Obviously if I compare 1 x £20 share v 400 x £0.05 shares the result is the same, but then I have to find more shares to borrow)

Fair enough if you want to measure the value of a trade by a single share.

Your part in the brackets is the crucial part not the value/upside from the individual share.

The fact you have 1 x £20 share vs 400 x 0.05 shares is largely irrelevant - the size of your investment is the same.