TribalHound

LSE:VLS Breaks out of a very steep descending channel

Long
TribalHound Updated   
LSE:VLS   None

LSE:VLS has been undergoing some considerable downward movements over the years, but has now broken out of its (very steep) descending channel.

Looking at the 'business' it underwent a major setback early to mid 2018 with a leak in the reactor, which wasn't attributed to them, but they clearly suffered because of it.

Global Carbon Offsetting is growing momentum, and with the additional their investments from BA / Shell, this could mean some considerable blue sky ahead.
Who wouldn't approve of Biomass to Aviation fuel conversion ?

Add to this the latest performance targets (16th Dec) for the Director Share options require an average price greater than 15p by December 2022 - and really there's only one position to take on this stock.

Still a 'speculative' or 'risky' buy - but if planning for their plant is granted, and if they regained half their peak value, then a 10,000% increase in todays value would put them at £1.00

Risk v Reward !! - At those returns it has to be worth a punt - doesn't it ??
Comment:
A solid breakout - and just a month on we're already 257% up on the trade.
From an entry at 2.05p to (@time of this update) 5.27p

Still plenty of buying volume, but the recovery has only just started.

I may have slightly underestimated the steepness, but with Cannacord making a 'Buy' tip it won't be long before any retail investors start joining the party.

Who could argue with a 257% gain (or 500% if you caught the bottom).
Hell - this stock could even outperform BTC !
Comment:
PS - if you like the idea - don't forget to give a thumbs up !!

I don't ask for much, but 145 views and only 5 likes when you're clearly making good money seems a little harsh.
Trade active:
took a little profit off the top @5.80 to scale back in on the bounce off the retrace support line. Didn't want to miss the launch so I set my rebuy a little high at 2.27 - with hindsight I should have laddered below that too, but hey - I'm back in.
Target 1 - 7.8
Target 2 - 13.8
Target 3 - 21.8 - with all 3 targets I'll be looking for a lower re-entry to accumulate for the long term. But with the increasing buy pressure, I might not get a chance.

The rest of the pot can free roll until BA and Shell have made it clear what their long term interest is and why they've both been investing.

PS - Couldn't resist adding today @3.50 - I'll take the cash back at target 2.
Trade active:
For all of those who joined me on the journey with LSE:VLS, all I can say is WOW !!

While every corner of the market has been floundering this year, we're 400% up today.... not a bad return at all..

Target 1 was smashed through - like it wasn't even there and target 2 is fast approaching with todays 50% gains - YES 50% in just 2 hours this morning..

I'm expecting a very steep correction soon - at least to the 0.618 line of todays move around 8.05p - or 0.5 at 7.30p - if we retrace on previous days starting points we 'could' go as low as mid 5's - but that's a risky wait now that the planning application has been submitted and BA / Shell are committed.

My advice right now - buy anything below 7p - and don't sell a damn bean below 20p.

Good Luck all !!
Trade active:
Target 2 obliterated.....
Any losses from the 'leaking reactor' news - now obliterated.
(who can forget that black swan event - May '18 - that led to a 90% drop in share prices) - especially for those who kept strong and kept doubling down.

If not today, then soon would be a good idea to de-risk - get your initial investment capital off the table - lock up the free carry and come back in a few years.

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