Zap-Map and decentralised generation21 Jan 2022 12:02
There has been a long history of board conflicts between Ecotricity and Good energy, and as a previous investor I am once again taking an interest ..
Yes it was probably good to dispose of generation assets at a premium, no it was not god to do so before the GM, but the gamble is that the wholesale price will fall faster than the cash burn will diminish the benefits. The wholesale price may not in fact fall very fast at all.
BUT if these funds are now used to build profitable "Off the grid" generation and charge stations, ahead of the curve, to meet the needs of ever growing numbers of EV on the roads, then there is still a good business, but the challenge here is to actually stay in business during this "Energy Famine", and with the retail market cap below wholesale costs how long can the firm survive.
I am sitting here along with my fellow "Gyps" (vultures), waiting for the share price to bottom out before piling back in again.
So the choice is either to sell and wait to buy back, or just wait. We could see £1 or even 70p before any upwards movement.
either way if you dump your shares cheap, the buyers will pick them up sooner or later and hope for profits.