Member Info for moneyspider

Ironic - I do see the value of having cash in the bank and no debt. However, this money all came from a fund raise, not really generating any cash are they. Now that they say that their margins are £13m short, then I think that their contracts are loss making. In this case, the cash will start to reduce as they pay for operational costs and wholesale energy. The energy market is tightening up, with wholesale traders calling for more collateral and M2M margin payments. YU will have to lodge a significant % of their cash to support future hedges. I'm betting they will need a fund raise or sale the business to return any value. Always open to informed debate.

They said that they would update by the end of January. Let's see what new news this will contain. I'm firmly on the negative side and others clearly here think that this will rise. I maybe wrong but time will tell.

It was reported in The Times on Sunday 27 January that Ofgem is preparing to issue a call for evidence ahead of a strategic review of the energy market for microbusinesses, including the broker market. Sources suggested Ofgem’s review was the first step towards a price cap for small companies. Ofgem said: “We will be conducting a strategic review of the microbusiness retail market to understand market challenges and consumer experience. We expect to publish an opening statement over the coming months.”

The wholesale energy market prices have fallen significantly over the last few months, the market to market calls will be large on their hedged volume and without good margins to generate cash they will burn cash quickly, would be several million over the winter period. My view is that whilst they have some cash in the bank they should look to sell their customer base while they can or this will go the way of all of the smaller energy suppliers. Even EDF was reported in the news to be considering exiting the retail market. Ofgem may also look at a cap for business customers.

I'm afraid they have significant debts and the value of their customers would not cover this …. first steps to administration.

You would think that they would get it right by now!

My view is that the management is very poor in this business, to not know what margins they have and a black hole of £13m is a disgrace. However, the low market cap of this business presents an opportunity for investors. In the worst case scenario the business would be sold, their customer base would be very valuable to an established business energy supplier and I believe could go for a premium over the current share price and the remaining cash in the bank would be a bonus. They hedge by lodging cash with wholesalers of power & gas, this cash would be released on a sale also.

Drop overdone - good entry point for the stock

Totally agree - will see a recovery here

How is deramping telling the truth about this business. If you read my posts I warned about this company many months ago before the collapse in the share price and if investors had taken notice they would not have lost as much. I did invest on the back of the glowing RNS that indicated that they were achieving profits and beating their expectations - turns out this was all lies. You can have as much revenue as you want but if there is no profit in that what's the point!

looselips - spot on with your thoughts on this. They would have hedged forward for the consumption that they thought they had but turned out not to be. This will cause them to be long in a market now where the wholesale price is falling - this will cost them. Wait for the report and the update on their cash position with no profit. This will go up for sale soon!

The trading update was excellent and on-line is the future. They seem to have the whole supply chain working well. Only one way for this share to go over the next few weeks.

The shares in YU have gone up recently due to the low market cap, UTW is now a great opportunity to do the same. They have more business customers than YU and make more money from them. I know YU is a supplier and UTW is a broker but they both target the same market. Brokers are still being paid fees upfront 80% with 20% after the contract ends, so the cashflow should be ok.

£10m hole reported - but could be higher. Margins stated are much lower but they don't know yet. Cash burn will be higher with less margin in the business. Wholesale energy costs increasing, so only getting worst. Operational costs much higher than other business energy suppliers - too many staff, new office costs etc. The water market is a joke with gross margins in single digit. What's to like?

The CEO has a duty to check the numbers - you can't say he was unaware - if he was then he should not be the CEO. Investors that bought in on the back of his glowing reports can't accept that.

The share price will continue to tank. The best they could hope for now is that someone is interested in buying the customers from them. Customers will not want their energy supplied by a company where the future is risky, brokers will not want to do business with them. Other energy suppliers will be all over this today!

Bobby can't sell his shares - that would be insider trading as the investigation goes on. He now needs to reduce the board salaries, pay back the money he took out. Suspect that he doesn't want a jail sentence.

This company BOD should be sacked immediately.

Seems crazy that Thompson can get away with this - surely he was there with all the inaccurate reporting and made a fortune by selling down his shares - much more than the company is worth today. The regulators / police need to be looking into this in a big way. He needs to pay back this money, then the company will be fine.

OneSelect Energy has just gone bust - they had plenty of revenue, but again lack of margin has sent this company out of business. Yu need to shore up it cash by a placing or will go bust in my view and they also need to reduce their costs (especially the expensive BOD - who should be taking some of the pain). If this is done then they could have business that might be worth investing into. Still think it is overvalued at todays price on their £10m hole reported and a much reduced margin going forward.

I now think that the risks with Brexit and Hugging will have a short term effect on the shareprice. Best to be out and watch from the side lines at the moment - good profit in the last few days.