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TL: What do you mean? GPTs market cap estimate is £36m to £81m. That's a 7.1 GBX to 16 GBX price target range.
Not that I would consider GPTs reasoning as reasonable 😅
Well if Labour gets in then there could be a possible upturn with GBE located in Scotland..
Mr t: there is a lot of talk without saying anything
I don't need an opinion if I can a ChatGPT 😂
Estimating the market capitalization (market cap) of Simec Atlantis Energy (SAE) based on the positive implications of the Uskmouth battery storage project involves several factors:
1. **Revenue Potential**: The 230MW battery storage facility could generate significant revenue once operational. Battery storage facilities can have high returns due to the increasing demand for grid stability and renewable energy support.
2. **Investor Sentiment**: Successful transition to renewable energy projects often leads to improved investor sentiment. If SAE can demonstrate progress and potential profitability from the Uskmouth project, it could attract more investors.
3. **Debt Management**: Revenue from the project could help SAE manage its £60 million debt more effectively. Improved debt management would reduce financial risk and potentially increase market valuation.
4. **Market Comparisons**: Comparing SAE to similar companies in the renewable energy sector that have successfully transitioned from traditional energy sources to renewables can provide a benchmark for potential market cap growth.
Given these factors, if we assume the project significantly boosts SAE’s revenue and improves its financial stability, we could see a substantial increase in its market cap.
### Hypothetical Market Cap Calculation:
1. **Current Market Cap**: £6 million
2. **Revenue Impact**: Suppose the battery storage project could bring in an annual revenue of around £10-£15 million once fully operational, which is a conservative estimate for a 230MW facility.
3. **Valuation Multiples**: Renewable energy companies often trade at higher revenue multiples due to growth potential. A multiple of 3-5 times revenue is common for such projects.
#### Potential Increase in Market Cap:
- If the project adds £10-£15 million in annual revenue, and we apply a multiple of 3-5 times this revenue:
- Revenue Impact: £10 million * 3 = £30 million to £15 million * 5 = £75 million
- Adding this to the current market cap: £6 million + £30 million to £75 million = £36 million to £81 million
Thus, **SAE’s market cap** could potentially rise to the range of **£36 million to £81 million**, assuming the project meets its revenue projections and positively influences investor sentiment.
### Important Considerations:
- This estimate assumes successful project execution and revenue generation.
- Market sentiment and other external factors like regulatory changes, competition, and broader market conditions will also play crucial roles.
- These are hypothetical estimates and actual market cap can vary.
In summary, the Uskmouth battery storage project has the potential to significantly improve SAE's market cap, potentially increasing it to between £36 million and £81 million, contingent on successful implementation and positive market reception.
Did also find this Mr T probably best to make your own conclusion
“Furthermore, the vendor and tenant have secured an additional capacity of 120MW which will trigger a pro-rata rental increase upon the date additional capacity is made available at the site”
https://news.cbre.co.uk/cbre-advises-on-battery-storage-site-acquisition/
Thanks OT!
The first one is very interesting.
The good thing here is that things have changed: the ring fenced budget is a big win. But as they say, investors want more guarantees to at least get a reasonable risk/reward ratio which currently is not in favor for tidal.
Getting a guarantee budget over half a decade, as suggested, would probably make a huge difference.
Who would ever attempt to scale if there's no green lights for that?
Thank you both, Tm I hope that you get your money back and see some profit.
Couple of bits of news around today
https://www.energyvoice.com/renewables-energy-transition/wave-tidal/uk-wave-tidal/553673/wave-and-tidal-energys-chicken-and-egg-investment-conundrum/
https://www.energylivenews.com/2024/05/23/energy-industry-urges-focus-on-renewables-in-july-election/
https://amp.theguardian.com/business/article/2024/may/23/national-grid-taps-shareholders-to-help-fund-60bn-low-carbon-energy-switch
PHE have got their uk patent and awaiting European. A company was objecting but that has been dealt with.
They also have a kiln en route from China. Due to arrive next month. The kiln is the heart of the process but other parts also perform the magic and are awaiting the kiln. The whole setup should be running this year.
They also announced an agreement with h2 in Australia not very long ago. Hoping things will move on this one as still 50% down.
In a nutshell they've come to an agreement over patent argument.
I used to hold shares in them, could have made an absolute killing end of 2020/early 2021 (as with most of the riskier parts of my portfolio, ah hindsight) but decided to hold, then later sold at a considerably less profit, but still a profit before it really tanked thankfully.
If you have time, what is happening with them now? I'm not in a position to invest in anything risky atm though.
Thanks OT :)
Could be be publicly available in a couple of days Mr T will keep an eye out .
Thanks yet again Phyl for pointing it out 👍
Is there a protocol or something? Would like to know what was said.
No worries Old Tramp. I see Graham Reid's spreading the good word over at Parliament. Here's the link...
https://x.com/saerenewables/status/1793285173594779769?t=ncouwLM1ljh50Sh1lVkkpQ&s=19
Anybody watching that stock? From zero two hero. That's what I hope to happen with SAE at some point..
Thanks for posting that Phyl looks like phase 2 (The cooling towers ) is moving at pace will be good to hear from the company in regards to the plan ie freehold sale or lease ?
And here's another, arguably more pertinent link...
https://twitter.com/saerenewables/status/1792941241547547043?t=jQOcofD_BLeBR0Xl4xKgVg&s=19
My position is I'm in, locked in and holding tight. Ever since the USK issue, we have had good news yet the SP fails to react for some reason. I would like to add but the BODs lack of Comms does slightly bother me on this one. I know it's not detrimental to the business but it certainly holds back confidence. All need released since USK had been positive but the company and the PI are not projecting it all so I'm a little confused with this share.
Last year's CfD does not even list wave energy.
https://assets.publishing.service.gov.uk/media/64fa0473fdc5d10014fce820/cfd-ar5-results.pdf
My question is if $75/MWh is just an exaggeration or a lie, or if that's a true statement.
Wouldn't be ideal if wave is able to compete in CfD auctions given the already rather modest ring fenced budget.
Did wave just overtake tidal stream?
https://youtu.be/3X2PqKKPb48?si=qM9t0LpbmXdoqnYm
Wenglish has been here year prior to Usk like me....
What's your position, if the question is allowed?
It would be good to see them position the Proteus ones as part of the array and then revive if needs be the others.
I personally think we are at the part of longevity testing as opposed to the R&D of peak performance stats. Surely they have learned enough to start placing in addition rather than replacing.
Pretty new here so please excuse my ignorance.