Utilitywise Share Discussion Threads

[bennywin] 04/11/2016 11:31

Then we will beg to differ.
No way would Brendan F have jumped ship at Sage if he could not see a bright future at UTW
Their increased customer offerings also offset the risk of suppliers jumping ship.

I am more than happy with my holding and won't be selling as a result of your advice.

[hanfofjohnson] 04/11/2016 11:04

Maybe my narcissim at needing to correct people, maybe a robin hood, all that matters is that everything I've stated is accurate and based on public information most of which has been made available bu utilitywise. Google 'utilitywise renegotiates with suppliers' an you'll find the 2 articles where they state everything i've mentioned, then compare that to the number of suppliers. Look into the size of the suppliers t/over & cust base vs utilitywise. Phone british gas (as an example) state your looking into 'sending business their way' and they'll email their terms. Then question why £2+ has been wiped of the share price in 18 months.

[bennywin] 04/11/2016 10:40

Not sure why you would make so much effort to open an account and write such a lengthy post on a share you are not interested in.
Are you Robin Hood and trying to do all us silly investors a favour lol ?

[hanfofjohnson] 04/11/2016 10:37

No conspiracy theory i'm afraid. I thoroughly research before dipping my toe as i'm sure many do, however when looking into share chat forums on this share there seemed a lot of assumption and mis-information/ lack of understanding of the industry which in turn affected decisions to invest. The issue with the two small suppliers that utilitywise are heavily tied with was a) the timing of the announcements of the renegotiated contracts and b) how this was misinterpreted. Essentially these announcements were stating that although there are 35+ commercial energy suppliers, utilitywise will only be dealing or at least heavily favouring two of them, if the shares weren't in freefall I believe these announcemrnts would not have been made and were only made to stem the issue of aggressive acvounting with turnover/cashflow not equating to cash in bank. The big 6 suppliers and many others will not pay commission on energy contracts until they 'go live', and even then only pay a small % of the total value of the contract at that point, this is an issue for utilitywise as they have huge staff costs and overheads e.g. over 40% of their staff are not sales based and therefore do not generate income. This is obviously not beneficial for the customer either as they are rarely/if ever getting the 'best price'. The large suppliers have millions of customers, some of which are international billion £ corpirations, so why would it be beneficial to them to pay a broker before a deal is active i.e. before they ate getting paid themselves?. To clarify, the total amount of gas and electricity that is predicted to be used by a business over the whole term of their contract (up to 5 years)is purchased upfront by the supplier at the ageeed price when the contract goes live, this is potentially a huge risk to smaller suppliers as a % of those customers will not fulfill their 5 year contract due to a variety of reasons, this heavily suggests that utilitywise must be comitting to a huge overall annual/quarterly/6 monthly purchase volume with particular suppliers for this to be of value to the supplier.

[bennywin] 04/11/2016 10:04

Yes
Interesting first post .
One might question your motives?

[brucie5] 04/11/2016 09:38

Interesting analysis. And yet Woodford seems to be a large holder. What is it that he doesn't see?

This chart may become interesting, is the retrace finds support at 1.60/1.50. But I'm not hurrying into anything at the moment, with the US elections next week.

[hanfofjohnson] 03/11/2016 18:35

Sceptical to say the least. 2 articles last year when shares were rapidly falling stating upfront payment had been negotiated with 2 suppliers, stank of desperation. It is known that none of the big 6 suppliers deal with utilitywise as it isn't cost effective or mutually beneficial. The 2 contracts that have been renegotiated are with relatively small and new suppliers and this is where they are placing vast majority of SME customers which form 85-90% of income. If these 2 small suppliers withdraw or renegotiate terms than cashflow is back to being a huge issue. The ASDA/iceland deal is purely for headlines and will generate little revenue as uplift will be miniscule. The size of the company is irrelevant only the profit per unit ratio. New CEO has bought shares, any real surprise when this happens? Pre-arranged to purchase after results as it doesn't show shrewed investment as could have saved 30p a share 2 weeks ago!!! As for the bells and whistles as dashboard/t-mac/dell etc they are merely distractions, as stated SME market makes up 85% cust base-point being the lical corner shop has no need or affordability for this. Smoke and mirrors everywhere you look with this share. The only positive and potential is if one of suppliers that are already heavily involved decide to go all in and invest/ buy outright, won't get many assets though as I believe they don't even own any of their own buildings.

[brucie5] 03/11/2016 09:43

Well, it could be testing of the support line, while the overall chart catches up. I have thought about buying in, but the suddenness of the rise made me think that retracement was likely. I'm continuing to watch with interest.

[az4hr] 03/11/2016 09:38

back to normal

[qs99] 01/11/2016 20:41

yup am holding on for North of £2 if they can continue to deliver and nice yield to go with it...gla

[hutch_pod] 01/11/2016 20:34

Yes the Edison writeup is excellent. They do seem to be really on the ball at the moment.

[quepassa] 01/11/2016 11:26

For anyone who missed it, this is a link to the very recent 28th. October write-up by Edison Research. Well worth reading. - another good piece by Edison:-




ALL IMO. DYOR.
QP

[quepassa] 01/11/2016 09:10

Thank you.

Agree that net debt is very low and they have healthy cash positions.

Director buying a good sign.


ALL IMO. DYOR.
QP

[hutch_pod] 01/11/2016 08:54

QuePassa

No further insights really.. Just that i'd be more concerned about the balance sheet if net debt was higher and hence intangibles/goodwill a relatively higher % of net assets.

HP

[nw99] 01/11/2016 07:45

Nice vote of confidence

[qs99] 01/11/2016 07:38

indeed a chunky purchase IMO

[bennywin] 01/11/2016 07:36

Nice to see the new CEO dipping his hands into his pockets.

[quepassa] 31/10/2016 09:50

Hi Hutch,

Interested to consider buying here as looks good but can't yet get my head around the big figures for intangibles and goodwill.

Do you have any further insights please?

Thanks.

QP

[hutch_pod] 31/10/2016 08:47

Much less of a concern as net debt drops, I'd think.

[quepassa] 31/10/2016 08:36

Aren't goodwill and intangibles a worry here? - They are a big part of the balance sheet.


ALL IMO. DYOR.
QP

[qs99] 27/10/2016 12:52

next stop £2

[qs99] 25/10/2016 17:52

agreed and don't see why they would need it either....IMO...so nonsense question me thinks...

[nw99] 25/10/2016 16:54

No chance of a placing

[larva] 25/10/2016 15:55

placing coming?