Member Info for moneyspider

Topped up again!

OVO are valued at more than £1,000 per customer and still loss making. All that YU needs to do is to show progress towards a profit and good management of the cash that it has. This is so undervalued compared to its peers. Could see a take over if the price remains low.

They have just announced that they have had a £13m investment. The market is waking up again. Yu will be back at £10 a share at this rate. Good times ahead - hold on to those shares.

https://www.reuters.com/article/us-ovo-energy-mitsubishi-idUSKCN1Q31DE

Japan’s Mitsubishi Corporation is to acquire a 20% stake in British energy supplier Ovo for around £200 million to fund its international expansion. Now worth £1 billion for a loss making business.

YU will be a great target - expect the shares to soar.

The MM's are playing games again - wanting to panic people into selling. I would love to buy more if I had the money.

wongtogo - I don't think that the BOD of YU can't really do anything until the FCA investigation has completed. The good news is that if there was anything too serious the BOD would have to inform the market by now, so all the bad news is probably out and they will get a tap on the wrists. Once this is out the share will fly as I'm sure that buy back or directors buying in strategy will be revealed and the large institutions will jump in. They can't whilst this investigation hangs over their heads.

I must admit I was very sceptical of this business but the latest RNS has provided the confidence I needed to re-invest. The cash position is very positive, much more cash than I expected and with no debt they do have the facility to invoice discount if needed. So a very secure business cash wise. I was also reassured that they are now getting business at reasonable margins. If you want a comparison for value, then just look at Bulb energy, £180m turnover, poor gross margins, lost £23m but had private equity investment of £60m valuing the business well over £300m. So YU will be worth a great deal more than the current market cap in the coming months if not weeks

No I bought £10K at 9.52.

Just bought again - this is a no brainer.

I must admit I was very sceptical of this business but the latest RNS has provided the confidence I needed to re-invest. The cash position is very positive, much more cash than I expected and with no debt they do have the facility to invoice discount if needed. So a very secure business cash wise. I was also reassured that they are now getting business at reasonable margins. If you want a comparison for value, then just look at Bulb energy, £180m turnover, poor gross margins, lost £23m but had private equity investment of £60m valuing the business well over £300m. So YU will be worth a great deal more than the current market cap in the coming months if not weeks.

Great info - thanks will be topping up.

Now that they have indicated that they have £14m of cash and getting business at reasonable margins I am much more comfortable with the business. The loss for last year will be approx. £7.5m but with £85m of revenue already posted for 2019, and with increasing sales the year end number should be £120m say, with a 10% GP that makes £12m gross and probably a net of £5m. At a multiplier of 10 that makes the Mcap over £50m for this projection. One thing to note is that they post trading margin currently £3.5m - they could get that cash freed up by simply entering into a deal with Shell (like OVO and Octopus have) and further extend credit for wholesale that would free up another £10m. All looking very good now.

Thank you.... made a few bob, always like the game.

They have not said anything about future profitability, just the loss for this year. Crap RNS

Thank you so much...….will be interesting.

Every chance. The ex CEO Geoff is the only one who has done well out of this. I am amazed that he can take money out of the business whilst the accounting had some many issues. If he paid the money back the company would be in a good place. Come on do the right thing!

Getting near the end of the month - where is the update as promised?

Check my comments on YU going back when the price was £10 - called it then and I'm calling it now. Loss making company, high operational costs, overpaid Directors (£250k each), no control over their finances, lot's of better funded competitors (BG lite etc) offering cheaper contracts to customers, no money in water retailing, expensive offices, FCA investigation.

One of us will be right …… let's see.