Member Info for sparky333

Smartest are no CNG smartest are global

Ther is a little more to BP and Glencore

Both had been heavily bailing out these companies and enough was enough, CNG main business is gas shipping to utility suppliers a few have gone bust and not paid bills and therefore strained CNG and Glencore refused the bail out / subsidies any longer.

So looks to me a combination of CNG not hedging with Glencore coupled with the likes of Symbio folding and not paying up

This give rise to a great opportunity

Would YU need to raise capital to fund ?

CNG are several businesses with the SME provider side only a small part 70m turnover against the larger shipping side 500m.

The shipping side has dragged the business down and now a Fire sale so cheap customer book on the supply side.

Glencore refused to bank roll anymore same with pure planet, loss making and BP refused to bank roll anymore

https://news.sky.com/story/glencore-backed-cng-underpins-deepening-energy-crisis-as-it-seeks-bids-within-days-12433173

40,000 clients up for grabs , looks like people have not been paying on the shipping side and brought CNG to it knees, are YU looking to acquire that it a huge step up and would give YU a 60,000 client book up from 21000.

How much for 40,000 clients in a part of a distressed businesses up for sale ?

YU are thriving, BK is ultra bullish

Lots of talk around acquisitions and not just small but big ones and NDAs

100% a deal is coming very soon ie short to medium term

Over 25k bought today

In answer to your question MK when a company signs up a YU contract YU hedge at the spot price the time the contract is placed so it doesn’t matter as no risk to YU as it’s all locked down.

So as a business who’s contact is about to expire do you

1. Sign up at current rate locked in for 1 to 3 years

Or

2. Negotiate a rolling monthly contract

Either way it’s a win win for YU as they hedge as the current spot rate

But it may delay companies signing up for long term contract with the spot price as it is unless you believe it is going higher, gas was up 20% in one day yesterday.

Amazed investors are not picking up on this as a win win for suppliers who hedge. Yet we are marked down 4.5% on 2k sells knocking 2m off the market Cap.

Stunning behaviours so glad I am sat and have intention of selling until we reach fair value. First tranche set at 1000p

We are in a high inflation market and coupled with energy prices running away causing a lot of un hedged companies to fold.

So YU are fully hedged on all contracts as they back to back hedge new contracts to avoid this situation causing mayhem in the domestic market.

Now how does this benefit YU

Well as YU package a clients contract over say 3 years at a cost of say 50000 and YU take for ease 10% margin therefore gross margin on the contract is 5000

Now energy is significantly higher by many multiples

So any new contact place now are based on the current spot price for energy which is many multiples compared to last year

So company x needs to renew and the exact same contract could be say 100,000k which means with YU margin of 10% the same contract would now give YU a gross margin of 10,000 which is double.

Please test my logic but if I am correct in my assumption YUs turnover and profit will be going ballistic on new contracts placed through 2021 and possible beyond for some time.

Never a better time to invest as the sector avoids inflation but more so thrives in it.

So we are currently MC 37m

1m profit in the first 6 months of the year therefore current PE is 37, industry norm is 30ish

I expect profits in the second half will easily exceed 1m and maybe even 2m so that would give a FY of between 2 and 3 m

If 2m which I doubt PE would be 18
If 3m more likely PE would be 12

Utter madness SP

YU presenting, just signed up

I do think YU are actively engaged in mergers or acquisitions of customer books they have been talking about it for some time and no time like the present to snap up financially stressed rivals at rock bottom prices

Just read about teneo on sky news these are special advisors and been put on high already for a large scale failing this is for the likes of bulb.

CNG are not big enough they are. A large company with 500m turnover but the energy supply side is small 67m turnover but a lot of customers 50,000 and all SMEs

In the results as this defies logic, stunning year to date, profitable, no debt, no gas crisis as fully hedged to 2023.

Actively on the look out to swallow rivals

Makes no sense how the SP is being treated just sell after sell

If an II wants a big slice they can ask BK to sell say 5% easy as that

It will be up and setting new record highs Bk himself seemed frustrated with it along with the VOX guy.

The markets are mental **** stock get chased to silly highs and good stocks get marked down makes no sense at all.

People do not invest anymore they gamble and follow the herd

Amazing how the market treat high performing companies

So who do we think is on YUs radar ? Obviously something going on in the background.

Smartest business energy, CNG energy ?

Someone has mopped up all those sells, the question is who

Hedged up fully to 2023 all new contracts are back to back hedging

What the hell is not to like about YU