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Good Energy Says Panel Grants Esyasoft PUSU Extension Until Dec 23....

Ah well.. Maybe some Good news (no pun intended) for Xmas??!!

Roger, if you have concerns, consider taking your profits and allowing the remainder to ride (play with House Money). If the price drops back down to 250p, you could average down. The last thing you want is to miss out if/when the train takes off!!

Good Energy and GRYD Energy partner to pilot zero-cost solar

https://www.solarpowerportal.co.uk/good-energy-and-gryd-energy-partner-to-pilot-zero-cost-solar/

"ood Energy will purchase excess power generated by three homes in Cornwall fitted with zero-cost solar systems under a partnership with GRYD Energy.

Renewable energy supplier and services provider Good Energy has signed an export-only power purchase agreement (PPA) with British solar technology firm GRYD Energy that means the former’s customers can receive clean energy generated from homes across the country in GRYD’s decentralised smart solar network."

Looks like the West Yorkshire Pension Fund initiated a position yesterday and are the 8th largest holder of the stock with 2.27% (420,000 shares).

What constitutes "Decent"?

I'm all in Roger, watching with my popcorn. I purchased more shares last Friday and stuck them in my kids JISA's (hopefully they'll thank me at some point). There's too much upside potential with this ticker and little downside (zero net debt an all).

I sat on the sidelines back in 2021 and watched YuGroup 13x to my horror. Won't happen again!!

Relax Roger... I doubt anyone bar the board knows anything including short term traders. Give it time to play out and focus on the fundamentals. If it does retrace back to 250p, I'll be backing up the truck!!

https://www.google.com/amp/s/www.express.co.uk/news/politics/1975313/keir-starmer-net-zero-target-heat-pumps-electric-cars/amp

"Brits warned we ‘all’ need heat pumps and electric cars to hit Starmer's net zero target

Heat pumps could soon become a staple in many UK homes due to the Government's bold attempt to reimagine the country's energy landscape."

It would not be surprising for Octopus et al to seriously consider submitting a bid. Their primary concern would likely be to prevent substantial investments from the Middle East from penetrating the stronghold of the Big Six. Octopus possesses the financial capability to acquire us at a valuation significantly higher than our current price.

"Energy regulator Ofgem has released new data today (29 April) showing that Octopus Energy has become Britain's largest electricity supplier, surpassing British Gas, with a 22% market share. Octopus has gained more than 1.9 million customers since Q1 2023, with around 6.8 million households now served by the company."

Https://www.bbc.co.uk/news/live/cly0gzxgzrmt

"The UK’s prime minister, Sir Keir Starmer, tells the COP29 climate conference he is committed to a more "ambitious" climate goal for the UK - an 81% emissions cut by 2035"

IMO I think any offer will be rejected unless it's quite substantial. This was the response to the 400p offer back in 2021 when the business was far less valuable than it is today:

"In response to today’s announcement, Good Energy reiterated its “unequivocal rejection” of the offer – with the price per share the same as the third indicative offer made – and its belief that it significantly undervalues the group and its future prospects.

Will Whitehorn, chair of Good Energy, said: “We firmly reject this highly opportunistic and hostile offer by a direct competitor to the company. The Board believes the offer is not in the best interests of our shareholders as a whole, nor is it in the best interests of our employees and customers. We have a clear growth strategy, a strong leadership team and a proven track record of delivering on our objectives.

“We are disappointed to see Ecotricity pressing ahead with its offer regardless of the Board’s unequivocal and unanimous rejection.”"

Since 2021, we've made multiple accretive acquisitions, a new labour government focused on its Net Zero ambitions and Zap-Map which currently has a 70% market share and has grown its registered user base annually by 74% (CAGR).

Once Zap-Map starts to properly monetise all this data, it's off to the races... Also, in 2022, it was valued in at £26.5m after the series A funding round (we own 49.9%). There should be another round of funding next year that'll hopefully increase the valuation...

Regarding market perception, I believe we are still relatively under the radar. Currently, GOOD is covered by only two analysts, and trading volumes remain low, limiting our visibility.

I fully agree. Margin expansion will be essential for our market re-rating. This acquisition, along with Amelio Solar, is poised to achieve nearly 20% profit margins. We anticipate that revenues from our services business will surpass those from the supply side, which currently operates on very thin margins of around 1%. Furthermore, I see great potential for Zap-Map to generate substantial margins independently. While a sale at this stage would be disappointing, I would welcome a strategic partnership or joint venture. Esyasoft's parent company has significant financial resources, and a cash injection could help us compete more effectively against the BIG 6.

Very good interview by Justin Waite a few months back. Our CEO explains it all quite succinctly!!

https://audioboom.com/posts/8574035-we-ve-accelerated-our-transition-to-a-higher-margin-business-nigel-pocklington-ceo-of-good-energy

Mammyoko, personally I don't think 800p is a stretch. If you apply an industry average p/e of 15 to fiscal 2025 earnings, you come to a conservative valuation of 800p. They also get the net cash and Zap-Map thrown in. Personally, I don't want a buy out. This baby has legs and a very long runway!!

Excellent post Orange.. I too would prefer to see the company grow organically but for the right price, i wouldn't be too upset :-)

Esyasoft have very DEEP pockets "Esyasoft, which describes itself as being at the forefront of smart grid technology, is ultimately controlled by the Abu Dhabi International Holding Company (IHC), the investment company chaired by Sheikh Tahnoun bin Zayed Al Nahyan, the son of the UAE’s founder and part of the Abu Dhabi ruling family."

From a fundamentals stand point, GOOD is projected to grow the bottom line by 40-50% for the next 5 years according to analysts with margins expanding. Next years p/e will be in single digits which indicates the company is still valued cheaply. Oh, and then you have ZAP-MAP which to me is our Trojan Horse and could lift our valuation exponentially higher. It's high margin, asset light business and i can see one of the big players making a bid for them (maybe Fleetcor who already have a vested interest and a stake in Zap-Map with MC of 23bn).

While there may be a slight pullback, it's important to focus on the fundamentals. I’m holding a significant position and considered taking some profits, but I've decided to let it ride. My average is around 270p so I'm finally up :-} . Free cash flow is growing nicely, and cash on hand is approaching £40 million. The multiple acquisitions will start contributing positively to earnings in fiscal 2025, adding substantial value to the bottom line. We also have strong momentum from the new government and their net-zero initiatives. Additionally, both analysts covering the stock have a consensus price target near £5.50. This buyout offer has brought us back into the spotlight.

Https://www.tipranks.com/news/company-announcements/good-energy-bolsters-solar-services-with-new-acquisition

It wants to break that £3 wall.... Seems to be strong resistance.

Indeed.. I missed the boat on YuGroup back in 2021 even though I was sitting on the sidelines. Finally got in last year but missed the exponential growth. Will not make the same mistake with Good....

Over the past six months, I have been actively accumulating shares and I must say that I am highly impressed with our CEO's strategic vision. The CEO's focus on growth areas and their efforts to improve margins have been truly noteworthy. In particular, I believe that Zap-Map is a hidden gem within our portfolio. Its potential value reminds me of Yahoo's early investment in Alibaba, which turned out to be immensely valuable. Yahoo paid $1 billion for a 40 percent stake in Alibaba in 2005 and is now reaping a huge return. Alibaba is worth around $186bn :-).

Considering the current trajectory, it is quite possible that Zap-Map's stake could surpass the entire valuation of the Good business. This speaks volumes about the promising future prospects of Zap-Map and the opportunities it presents for our company.

It is exciting to be part of a company that embraces such strategic moves and identifies potential opportunities for growth. As an investor, it is reassuring to see the CEO's keen eye for spotting hidden gems and positioning our company for success.

Slightly worried about Ecotricity being our largest shareholder and competitor but we'll see how this plays out...