RE: TU23 Jul 2025 10:35
I haven't posted before but you may be interested in Paul Scott on Substack's view he summed up by saying
" I don't know how it'll pan out, but it's not for me anyway. I'm just sceptical over the business model. I don't just look at the numbers. I think about the business and think, well, why is it making this level of profits? What would make it make more profits?
I just don't really get it with YU Group, I'm afraid. It's only supplying utilities, reselling it, and it's competitive. So, you would imagine wouldn't you that prices will come down and it seems to be saying something along those lines today."
He also referred to the financial problems of 8 years ago so it seems memories are long and unforgiving, he does accept though, it appears cheap at the current level.
But he probably isn't alone with these views.
At the end of the day the company can only keep increasing profitability and the market will decide.