ALCHEMY ENTERPRISES LTD. (OTCBB: ACHM)

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At StockUpTicks we’re value-oriented and results-appreciative.  This is a survival technique for the smallcap investor.

We see tons of stories as we survey press releases, conferences, and hold phone conversations with CEO’s and analysts. We’re looking for the kernels of credibility that separate reality from stagnant dreams.  As we’re oft to say, we want that nugget that tells us “this one’s for real.”

And that often comes in different forms.  For some of our featured companies, it’s means cutting a deal with a huge company on a senior exchange.  For others, it’s revenues that tell us the product can sustain the company.

And for today’s featured company, it’s the source of their technology.  This company has partnered with NASA's Jet Propulsion Labs to develop alternative energy technologies.  Yes, NASA.

Sound intriguing?  It is, and a full StockUpTicks.com profile is included in this email.
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About Alchemy

Alchemy Enterprises, Ltd. ("Alchemy" "ACHM") was founded in 1999 and is headquartered in Scottsdale, AZ. Alchemy is an alternative energy company that is developing a new electric power cell ("EPC") technology that it believes will generate and manage electricity to power a broad range of applications, including buses and automobiles. 

On February 15, 2006, Alchemy closed a Technology Contribution Agreement and acquired the rights, title and interest in and to a certain EPC technology to be used in connection with the development of an improved electric battery represented by a U.S. Patent Office patent application.  As a result of the Technology Contribution Agreement, the Alchemy board of directors made a decision to change its business focus from marketing chemical products toward developing the EPC technology. 

On June 12, 2006, Alchemy entered into a License Agreement with California Institute of Technology ("CalTech"), which operates the Jet Propulsion Laboratory ("JPL"), a federally-funded research and development center for the National Aeronautics and Space Administration ("NASA"), whereby Alchemy acquired certain exclusive licensed patent and/or patent applications rights and improvement patent rights related to research performed as "Mechanically-Fed Metal-Air Fuel Cell As A High Energy Power Source." 

Working in a research and development partnership with NASA's Jet Propulsion Laboratories, the patent pending electric power cell technology, if developed, may produce a clean, environmentally friendly, re-usable source for electric power and fuel. The prototype that is presently under development is being specifically tailored for implementation in vehicles manufactured by Designline Group in New Zealand . Designline is a world leader in the production of electric drive systems for buses.

The Market for an All Electrical Vehicle

The future of the All Electrical Vehicle is upon us now. No more down time for charging - just Gas and Go. No more limited range, size, weight, or performance restrictions. The Alchemy Electric Power Cell Technology offers the performance required for Vehicles of all sizes.

This unique technology allows the electric power cell to provide power levels and performance comparable to gasoline engines. 

This all electric power cell technology is designed to enable the consumer to power their vehicles at much lower costs than current cost of gasoline. 

The Power Cell recycling process produces no waste or exhaust release from the vehicle or the recycling service stations. The Power Cell technology will greatly reduce the pollution load when compared to that generated by gasoline powered vehicles and fuel stations. The Power Cell system is also directly applicable to long term storage of electrical power for on-demand or emergency use, and has a shelf life expectancy of tens of years, far exceeding any other energy storage system currently known.

Although the market applications for this exciting new technology are virtually endless, there is a starting point in every company’s infrastructure and business model. The company plans to focus its technology launch in the public transportation sector in alternative energy and exhibit the true power behind our electric power cell technology and entering the small bus market. The public transportation industry alone is approximately $850 million in annual spending.

President Bush announced in his state of the union address, the implementation of the Advanced Energy Initiative – a $10 billion dollar budget that has just realized a 22% increase in clean energy research. With the federal government fully backing new technologies, and the alternative energy industry already standing over $13 billion, the company plans to encompass and capture this explosive market.

The Geo-political, Green-House, Pipeline-Shutdown Oil News rocked the U.S. this summer and there is a demand for environmentally and cost effective alternative fuel sources. 

As Alchemy President and CEO Jonathan Read recently explained to an analyst, "The greatest emphasis and perhaps the most enthusiasm lies in the use of hydrogen as an alternative fuel source. The problem with hydrogen has always been that it is a volatile and unstable gas, and hence problems in its transportability, explosiveness, and volatility in terms of leakage. We are using magnesium as our base product in our reactor. Of extreme importance is that the magnesium, when it is used in our system, is recaptured and can be recycled and used in our system within a 24 hour period as a fuel catalyst for us. In that regard and considering that we produce no emissions, no toxins, no explosive materials and no flammable materials, we are really disrupting hydrogen technology as we know it and replacing it with magnesium, power-on-demand, hydrogen-on-demand, for the hydrogen systems that are in place.

"It is clear that our system has the best potential for both cost-savings and environmental savings so we are looking first at the public transportation sector and that would be quickly followed on by delivery vehicles such as the fleets of  Federal Express, UPS, the US Postal Service and followed thereafter by widespread use in automobiles."

NASA and Alchemy have been working together on a JPL Task Plan to develop, test and bring to commercialization Alchemy’s Electric Power Cell technology.  The Company has now acquired the exclusive worldwide rights developed under the JPL Task Plan, and subsequent technologies and other rights, including, the Fuel Cell Power System with Advanced Hydrogen Storage technology. 

Under this agreement, Cal Tech has taken on the responsibility to prepare, file, prosecute and maintain any and all patent applications and patents within the Exclusively Licensed Patent Rights and the Improvement Patent Rights related to the Power Cell Technologies. 

On June 12, 2006 the JPL announced the important successful testing of the Alchemy EPC. The tests that were conducted included procedures for quantifying the reaction of magnesium in the electric power cell. The measurements taken indicate the potential for greater than expected production rates for hydrogen in the system. These tests were undertaken through Alchemy’s Task Plan with JPL and were headed by the JPL team assigned to the Power Cell Project. The purpose of the testing was to calibrate the magnesium material density and porosity for even disbursement during the thermal process as well as establishing thermal models and reaction rates for establishing optimum reactor size for production devices.

The Alchemy Electric Vehicle system is made up of several elements. First is the electric power storage facility that stores the material for re-fueling purposes. Another system element is Electric Power Cell Technology that is a fuelable battery that can be refueled many times just like a fossil fuel car receiving gasoline. This assembly incorporates intake capability for the removal of spent electric fuel, while at the same time filling the vehicle's electric fuel tank with new fuel. 

The performance of a power cell operated vehicle will beat the performance of the conventional gasoline powered vehicle. The cost of operating a vehicle with Alchemy’s Electric Power Cell will allow for the first all electric power system. The power cell is not plagued with the performance limitations associated with conventional battery technologies in use today. The cost of producing the material for the power cell is lower than the cost of gasoline fuel, and the over all cost can be amortized to even lower cost because the material is able to be re-used over and over again. The cell is also ideal for on-demand, emergency situations that require long-term electrical storage. 
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ACHM In The News

Press Release Source: Alchemy Enterprises, Ltd.
Tuesday October 10, 4:01 pm ET 

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Alchemy Enterprises, Ltd. (OTCBB: ACHM - News), the alternative energy company that is developing a new electric power cell technology that it believes will generate and manage electricity to power a broad range of applications, announced today that it has completed a common stock offering of 34,500,000 shares through Brookstreet Securities Corporation. Gross proceeds of the offering were $12,075,000.

Neil Dabney, the Director of M & A for Brookstreet, stated, "Our investors are excited about the prospects for Alchemy's technology platform. This placement will continue to fund Alchemy's research and development partnership with NASA's Jet Propulsion Lab and keep the Company on track for deploying its first prototype Electric Power Cell (EPC) unit in a hybrid bus during the first quarter of 2007."

"It is certainly a real vote of confidence to have the member brokers and clients of such a quality firm as Brookstreet believing in Alchemy's potential," said Jonathon Read, Alchemy's CEO and President.

To read the complete release and disclaimer, click here.

Press Release Source: Alchemy Enterprises, Ltd.
Wednesday August 16, 9:00 am ET 

PHOENIX--(BUSINESS WIRE)--Aug. 16, 2006--Alchemy Enterprises, Ltd. (OTCBB: ACHM - News) announced today that they have successfully recently operated the prototype Electric Power Cell (EPC) integrated with a hydrogen fuel cell for the first time.

During this experiment the EPC was connected to, and powered a series of 115-volt apparatus. The tests were significant in that it was the first time that the EPC had been connected to existing hydrogen fuel cell technology and produced ongoing electricity. The tests took place at the Jet Propulsion Laboratories in Pasadena during the week of July 26th with ongoing data analysis through August 12th.

"This test represents a positive step forward and proof of concept by way of our prototype," states President and CEO Jonathan Read. "Our Electric Power Cell, using magnesium, produced continuous 115v power. From this latest test, our technology is no longer considered a theory, but it is now fact. With this and the corresponding test results in hand we have begun our full scale design and build of our 100KW system."
The prototype EPC generated well over twice the hydrogen flow required for the tests. The test lasted approximately one hour and produced the required electrical load, as mandated by the test, for 33 minutes. Subsequent testing will have modified controls more accurately regulating the materials flow thereby regulating hydrogen flows for specific "on demand" characteristics. Water and Magnesium utilization profiles have been improved significantly as well due to ongoing design improvements.

The EPC uses the safe, non-toxic, and readily available magnesium as its "fuel material" eliminating the need for highly compressed tanks of the volatile hydrogen, and produces hydrogen on demand. Alchemy is completing the designing and construction a 100KW system for use in transit buses planned for the first quarter of 2007.

To read the complete release and disclaimer, click here.
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The Management at Alchemy

Jonathan R. Read, President and CEO
Mr. Read is an experienced brand manager, international developer, and international licensor. He began his professional career in 1976 as a Regional Manager of Specialty Restaurant Corporation, CA, operating a theme dinner house throughout California. He then became Managing Director for a group of international Companies based in Malaysia, Indonesia and Singapore ranging from hospitality interest to manufacturing and real estate. From 1984 he was the Chairman and CEO of Shakey’s International a worldwide restaurant chain with operations in the U.S., Southeast Asia, Japan, South America, Mexico, Europe and the Caribbean, which he sold in 1989. From 1986 to 2003, In 1986 Mr. Read founded Park Plaza International (Park Inn International/ Park Plaza Worldwide) and served as Chairman and CEO from 1986 to 2003. He expanded Park Plaza from 4 hotels into a global hotel group. He built, owned, operated, managed, and franchised hotels across the U.S as well as in: England, France, Germany, Switzerland, Holland, Belgium, Hungary, Austria, Ireland, Scotland, Spain, Poland, South Africa, Australia, New Zealand, Malaysia, Indonesia, Hong Kong, Philippines, New Guinea, Vietnam, Japan, Tahiti, Israel, Palestine, Saudi Arabia, Dubai, Lebanon, Jordan, Mexico, Costa Rica, and Brazil. Mr. Read sold the companies to Carlson Hospitality and Golden Wall Investments in 2003.

Howard A. Foote, Chief Technology Officer
In 1994, Mr. Foote enlisted in The United States Marine Corp., and served as a jet mechanic and plane captain for A-6E Intruders. Mr. Foote is qualified as a pilot in 25 different types of aircraft, including Russian military fighter aircraft and RAF military aircraft as well. From 1989 - 1992, Mr. Foote was privately educated by the world leading Aeronautical Engineering Professor, Svenn Ridder of the Swedish Institute of Technology. It was here where Mr. Foote worked on an advanced flying wing design in Swedish wind-tunnel facilities, to successfully design an advanced flying wing configuration vehicle; the vehicle used Microwave Power Transmissions to power the aircraft instead of conventional fuel. Mr. Foote received a patent for this unique aircraft design. The configuration is considered state-of-the-art, even after 12 years since test completion. He has been contracting with Jet Propulsion Laboratories-NASA since 1991. Mr. Foote holds many patents for advanced aircraft design, complex systems architecture, orbital power stations, and electric fuel cell technology. Mr. Foote has become one of the most progressive aeronautical engineers today.

Elliott Winfield, Executive Director, Worldwide Business Development
Mr. Winfield started his professional career in 1970, earning a Bachelor of Science Degree in Industrial Design, and Masters Degree program in multimedia design. Since then, his professional career grew into entrepreneurship in a diversity of industries worldwide. Mr. Winfield has owned and operated companies including fine art gallery, professional placement agency, medical security company, publishing company, Internet development companies, Mortgage Company, and automobile brokerage. Mr. Winfield has lived in Europe , and as a strategic business development expert, has negotiated large international transactions. He has experience in international banking, corporate structuring, mergers and acquisitions, manufacturing, financing, and application of new technologies. Mr. Winfield will use his efforts to bring new energy solutions and advanced technologies to the power and transportation industries, and to facilitate the successful corporate growth, and world positioning of the Earth Energy Industries group of companies.

James Gaspard II, Executive Director, Commercial Transportation Industries
James Gaspard II has a JD and a MBA from the University of Texas in Austin.  He also has a Bachelor of Science degree in Political Science from Texas A & M - Commerce.  Mr. Gaspard is a licensed Attorney. He has interned for Chief Justice Thomas Phillips and Justice Raul Gonzalez of the Texas Supreme Court, and was Editor-in-Chief of Texas Journal of Business Law.  Mr. Gaspard is the founder of Leading Edge Transport Systems, LLC, a company that is currently active in introducing new transportation technologies into the North American transportation marketplace.  Other transportation industry experience includes past roles as the Vice President Transportation Sales for Air Serv Corporation where he presented over $200 million of strategic opportunities, Vice President Sales & Marketing for Champion Bus, Inc. and Vice President of Sales for Neoplan USA Corporation, where he built up a backlog of orders exceeding $800 million.  Mr. Gaspard currently serves on the Board of Directors of Trailways Transportation System, Inc.. Mr. Gaspard is an expert, public speaker, and published author on the subjects of a new intermodal transportation system with vehicles that combine passengers and freight, creating new paradigms in the transportation and commercial trucking industries.  As an inventor, Mr. Gaspard invented the Intermodal Expeditor, a vehicle designed to transport both passengers and standard intermodal freight containers and "Dynamic Scheduling", a business process patent.
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Financial Highlights For  ACHM

Sector: Industrial Goods Industry: Industrial Electrical Equipment State of Incorporation: Nevada Recent Price $1.25 52 Week Low $0.30 52 Week High $2.15  Shares O/S (Millions)78.500 Market Cap (Millions)$109.115 approx. Float (Millions) 23.219 approx. Transfer Agent:  Holladay Stock Transfer

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