Member Info for sparky333

Glad you found my thoughts useful.

YU is an enigma was over £12 a share 4 years ago and the 2018 issue which YU highlighted when the new CFO came in.

The business has been reset and incredibly much stronger and profitable now prior to the 2018 issue.

The market cannot ignore much longer because in another 18 months the PE will be under 5 and more cash than MC.

2022 we may also start to get a dividend again.

How many companies have

1. No debt
2. Profitable
3. Growing at the speed of a tech start up
4. Dividend in the future
5. Huge market

To name but a few and currently 39m MC with £11.7m cash

Dragged down again on very little selling, now more buys than sells and still down 4%

Oh forgot to add not one penny off debt.

Hi Pixax,

Your assessment is like most bulls on YU, and the house broker target is £5 and that was before they beat the H1 numbers so expect that will rise post formal H1 results.

So what is holding back the SP ?

1. 2018 accounting issues, even though they have transformed the business people take a long time to forget.
2. Illiquid stock, SP can go up 100% in a day with strong buying but this causes downside issues as well and YU has got in a habit of fast rises and slower declines and trades are use to this now, one day it won’t and they will miss out buying back lower.
3. Bobby Kalar holding over 50% some investors think he should sell down as to much control, this is a double edged sword as protects from hostile takeovers but he has also publicly stated he will not sell a single share.
4. Boring utility stock, people seem to be missing that we are growing as fast as an hi tech company.

So there are my 3 views on what holds back the SP but this cannot continue as the fundamentals are exploding North and the market cap is only £40m

This year they will smash the broker numbers out of the park , turnover estimate is £128m I think they will hit close to £140 to £150m

Profit, yep maiden FY profit and that is after paying for the final bit of the Leicester office and deferred VAT

Next year turnover will smash £200m with a net margin if 4% and FY of 6 to 8m obviously dependant in takeover or mergers which could send these numbers. Far higher.

In summary the SP next year should be closing in a £10 which would still be cheap for a high growth profitable company.

I agree higher prices is a big bonus the market seem to be ignoring.

Also I expect a flurrry of companies locking in deals so July, Aug and Sept to be exceptionally busy for YU.

I see a few buyers retuning with a 10k this morning and a couple of 3k over the past 24hrs

Aha, this quarter is when acquisitions will happen as the ROC payments had to be made by 31st Aug, Symbio already had a telling off. No doubt some more challengers will fold.

Fingers crossed as we do need some news to spark the SP

What makes you think that Howie ?

Indeed, fingers crossed and the market finally wakes up

Thoughts ?

Green energy supplier So Energy merges with Ireland's ESB in a bid to become UK's leading renewable firm

Why buy 4031 this morning and sell a few hours later at a slight loss ? Strange things afoot and has been for a while to keep SP range bound

Just seen on LSE site YU have a banner popping up now

Been a trickle of buying the last couple of days, is this ahead of results ?

Not long to H1 results and hopefully H2 outlook.

I expect nothing more than very bullish outlook as H1 numbers already released just not formally.

I think investors are getting bored as not news outside of trading update for months now, so much for acquisitions

Oh well next time. Loads of those customers will leave anyway as obviously didn’t want one of the big 6 in the first place

Amazed people are selling the future is very bright and multibagger written all over YU people seem to forget the MC is only £40m and no debt.

Turnover should hit £140 to £150m this year a couple of million profit after paying for new offices in Leicester.

Hub look so tempting 9000 SME clients just hope they win over Ofgem .

Good post, also EV points will be explosive going forward

Also worth noting the more the turnover the more the overheads reduce so currently 6.2% and on 300m I think this would fall to around 5 to 5.5 leaving net margin of 3 to 4 %

The drip drip is starting to grate me now it’s like the SP is being held in a certain range.

Also the entire sector is unloved by the market as the dream chasers look for the next Bitcoin 1000 bagger.

Our time will come as 2021 is a turning point as growth is exploding and even more so if they get the client books of the likes of Hub energy.

Within 12 months you could be looking at 50,000 clients and turnover heading towards 300m.

Above is not a pipe dream but reality of the organic growth coupled with some Chunky bolt on like 9000 hub clients.

2.5% to 3% margin on 300m is not to be sniffed at that’s £9m profit and a PE of 4

Indeed MKS123, it is not just the water but EV charging points, which is exploding and has many ways to generate money.

On the flip side I totally get why foreign buyers are snapping up stakes in the UK in ultities and defence, they are dirty cheap and UK investors fault for not realising the value.