GG archive: DYE and AEB

(First posted July 6, 2013)

SINCEhe started, he has had only one hard cash winner, Dolomatrix, a chemicals and toxic waste recycler which sold its business to ToxFree Solutions (ASX code TOX). Dolomatrix shareholders received a total of 38.6c a share, in a combined capital and fully franked dividend. (For the sake of simplicity, the Gambling Greenie is ignoring capital gains tax and dividend "franking" credits for tax paid on company profits).

Recently two of his biggerst losers, Dyesol and Algae.Tec, have recenty shown signs of life. So much so that the intrepid GG decied to pour some more moolah into them by taking up their recent share purchase plan offers.

Dyesol shares earlier this year have been as low as 10c, and when the share offer came out at 16.6c at the beginning of May it didn't look too exciting. But then the company announced that its solar cell technology had beaten one of the international standards by 400 per cent and the shares powered their way to nearly 60c.

That made buying more shares at 16.6c look like the bargain of the year, and the GG hastily wrote out a cheque for nearly $15,000 to apply for the maximum allocation. Alas, everyone else did too. Dyseol had been hoping to raise a modest $2 mln. Investors put up more than ten times that. Dyesol agreed to double its target and take $4 mln, but even so everyone was severely scaled back. The GG ended up with only 2,760 extra shares., but on paper at least he is now showing a slight overall profit on Dyesol.

Algae.Tec, which aims to use CO2 emissions from power stations to grow algae in tanks to produce clean diesel and jet fuel is a similar though much less dramatic story. With the share price drifting down to the offer price and below, no one was interested in buying more at the offer price of 22c. Algae.Tec extended the closing date five times in a desperate attempt to get in the money. Then last week it was able to announce a major contract with one of NSW's largest coal-fired generators, the NSW-owned Macquarie Generation.


The GG is licensed to drive a motor vehicle and has had formal training in the use of a chainsaw. He is not an adviser and has no links with the financial services industry. He is not sponsored by anyone. He does own shares in a number of "green" companies, and has the losses to prove it. He will refrain from dealing in these shares for at least 48 hours before and after writing about them.

That lifted AEB shares from 18c to 24c, a whisker above the offer price. The Gambler, aware that the technology is still only at the trial stage, decided that this was a big endorsement of the slimey green solution, took a deep breath and applied for 20,000 new shares.

At the time of writing the offer was still open, but due to close (finally) on July 10.

Adelaide Independent Reporter 2013