Alternative Energy (fka AENS)

[coin_in_fountain]

Looking at the latest news

The article below implies that building a new plant doesn't make any sense any more, and the only practical way to get into this business is to buy an existing plant. OK, that makes perfect sense. We figured that out a long time ago.

It also sounds like they have run out of money, and their people are now contracting themselves out to some other existing ethanol business. That keeps their paychecks from bouncing, presumably until the ethanol business gets back on its feet, and building that Ogden plant becomes viable again?

If all of this is true, it sounds like these AENS guys are expecting a VERY lengthly delay before ever getting back on track with their Ogden plant plans. It also suggests that they are very stubborn, they're going to do everything possible to hang onto those Ogden dreams for as long as it takes to become viable again. In other words, these guys may have found a way for this small company to successfully "hibernate" until the ethanol business improves. Maybe they figure they'll be first in line to build a new plant when market conditions allow.

I've never seen anything like this before. They must really be convinced of the value of their past work. They refuse to give up, even though they're broke, so they're working for somebody else in the meantime. Amazing story, isn't it? To me, it looks like this stock isn't going to zero, but it also isn't going up anytime in the near future until such a time that new ethanol plants become desirable again. (A year, two, or maybe even three?)

If they can collectively earn $125K/month working for somebody else, they must be pretty good in their respective fields. These guys seem to be honest business men, and haven't abandoned shareholders. That says a lot about their character. They just had very bad timing trying to enter the ethanol business, that's all.

Perhaps their strategy is to keep their skills sharp working for this potential acquiring company, and then eventually this other company will buy AENS' Ogden plans, and put them in charge of it? That story would have a happy ending, sort of. The AENS shareholders would get their 50 cents, and the AENS guys would realize their new plant dreams, albeit working for somebody else.

Of course all of this is speculation on my part, based on the little information we have.

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BRIEF: Alternative Energy to provide services to potential buyer


Jan 14, 2008 (The Kansas City Star - McClatchy-Tribune Information Services via
COMTEX) -- Alternative Energy Sources Inc. said this morning that it has agreed
to provide services to its potential acquirer in exchange for $125,000 a month.

The agreement provides "incremental cash flow" while Kansas City-based
Alternative Energy considers its options. The company formed in 2006 to build
ethanol producing facilities but has not raised the money necessary.

Last week, the company let expire its option to buy land in Illinois, where it
had planned to build a 110 million gallon plant. Executives said it is cheaper
now to buy an existing plant than to build a new one.

Today's announcement did not identify the company that is considering whether to
buy Alternative Energy.

It listed the services as evaluate corn procurement strategy, commercial
contract review and analysis, risk management review and analysis, operations
evaluation, logistics assessment (rail, truck, barge and ship), due diligence
support and other items as agreed.

Alternative Energy shares were unchanged at 14 cents each in trading on the OTC
Bulletin Board.

| Mark Davis, [e-mail]



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