Bglobal Share Discussion Threads

[melody9999] 18/3/2010 13:04

Hmmm - see another top up shortly.

Especially when this business is growing so quickly as per comment with recent trading statement

"With sizable agreements in place to install meters and provide data services
for major energy supply customers for the year ahead and with our operational
performance demonstrating renewed growth we are confident of our position as we
move towards our new financial year."

[longshanks] 17/3/2010 09:06

I'm buying - so it is only right that someone else should be selling

[realities] 16/3/2010 23:05

leluot2,

LOL! Selling is a normal function of the stock market. Not strange at all.

[leluot2] 16/3/2010 22:36

Cant get my head round the selling today! Very strange

[melody9999] 11/3/2010 10:27

I always find it interesting when mostly buys are coming through, yet the MMs drop the share price They are after stock and trying to mug a few of us into selling at a low price so they can then increase the share price and sell them back. Typically we might some press / tips over the weekend which would bring buyers in next week.

[leluot2] 10/3/2010 07:09

Bullish update and contract wins. Lets look for some sustained buying. BGlobal very much back in track!!

[leluot2] 19/2/2010 11:02

Very promising signs in the market today that the share price is bouncing back to a higher level.
Nothing is ever certain but this surely looks like a great time to BUY!

[melody9999] 18/2/2010 17:26

hmmm - looks like it could be time to top up here again. bought my last tranche at 43 in mid Dec and sold them at 55p so may try the same again.

[melody9999] 07/2/2010 20:27

Yep - the fact they have 5 partners delivering installations means that BGBL management has recognised the challenge and worked to minimise this risk at an early stage (last trading update).

[mattjos] 04/2/2010 14:25

& therein lies the risk/attraction of investing generally i guess.

[weatherman] 04/2/2010 13:27

I can see this one going to 100p in 12-18 months. But there are risks in ramping up business in terms of delivering on promises. I can also seen this one going to sub 20p if they screw up big time. So I'm tempted to buy, but wondering whether the upside is worth the risk.

[mattjos] 04/2/2010 00:10

mike .. seen your posts a while ago thanks & re-read this eve. i have no problem seeing the potential in this sector - hnce my interest here & in CYAN.
In the case of BGBL, my concerns are really about costs as they scale up, margins & quality if they are forced to sub-out to keep up rollout rate & competition appearing at the point that the business may just show consistent profit.
Obviously the quicker they build their base, the higher the fence is to climb for a competitor.
In the residential market i'm unclear as to the willingness of the consumer to pay the fees associated with the units unless they are incentivised or strong-armed in some ways.
CYAN is much more risky at this stage & they have competition already but, the Chindia angle gives staggering growth opportunities & on more manageable variable costs once orders arrive (IF i suppose) + the municipal driver for the technology is clearer cost/benefit decision & easier to fit at street lighting build-out rather than retro-fit. The've about cut their fixed costs to the bone now i think.
Still on the sidelines at this stage & watching both & willing to pay a little higher for both/either, if necessary, once decided.
Open to counter-arguments
(As for choice of stocks ... keep trawling about & bound to cross paths at some point :-) - i see a couple of others you are in too. useful geographical & sectoral choices)

[melody9999] 03/2/2010 21:18

I note that 3rd quarter 2009 10,500 meters were installed. The B Gas only rollout is planning 100,000 for 2010. Then add in all the other business customers. Then the domestic launch. That is a big ramp up in meters installed so its not surprising that BGBL have had to look to partner to ensure this happens. That will obviously affect margin but presumably BGBL managment see this as being more than offset by the ability to increase volumes.

[melody9999] 03/2/2010 21:18

I note that 3rd quarter 2009 10,500 meters were installed. The B Gas only rollout is planning 100,000 for 2010. Then add in all the other business customers. Then the domestic launch. That is a big ramp up in meters installed so its not surprising that BGBL have had to look to partner to ensure this happens. That will obviously affect margin but presumably BGBL managment see this as being more than offset by the ability to increase volumes.

[ridicule] 03/2/2010 13:30

Another aspect to consider is that Investors Chronicle in selecting BGBL as one of their 2010 tips assessed the P/E as just 8 on profit forecasts for this year and at around the current share price. Given the loss of profit, this will rise somewhat but, even if it was 10, the shares have upside from here.

[substp] 03/2/2010 09:01

Thanks Mikeja

[mikeja] 03/2/2010 08:59

Sub,as I understand it the person being metered pays the maintenance fee and the data services seem to be paid by the supplier.Obviously they should benefit greatly when BG and the other suppliers enter the residential mkt.

[substp] 03/2/2010 08:54

Mikeja ...Does the maintenance fee include the data provision ?

Should the new contract with BG put them in good stead if or when BG enters into the residentual market ?

Edit: "In addition, the Company will provide new data services, delivering recurring revenues of more than GBP1 million per annum."

[mikeja] 03/2/2010 08:30

Matt,my post was 153 and a couple of follow ups.Interesting we should be interested in so many of the same shares.

[mikeja] 03/2/2010 08:24

Pleased to say got the share reaction wrong.The revenues for maintenance are for a ten year period,so will be cumulative for years to come.I posted about this some time ago Matt,will try and find the posts.BGBL are about to reach tipping point and revenues should show colossal growth over next few yrs.There are always a few hiccups in managing growth of this order.

[substp] 03/2/2010 08:03

Will the data provision be the cream in the end ???

[mattjos] 03/2/2010 07:48

yes. v. mixed update. its the relationship between installation rate & installation costs (engineers, vans etc) that mainly concerns me. Weather affects are relative one-offs. the recurring element of revenues - mike do we know for how long after installation the revenues / meter are at a guaranteed rate?
i cannot yet work out if it's the utility cos & the meter manufacturers who will be the winners here and/or if BGBL will be the installer always just behind the point of profit

mg .. a resounding silence from EON. At least they stopped writing though

[mikeja] 03/2/2010 07:35

A very mixed update.Nobody likes to see profit forecasts missed.Probably a 2p markdown.On the bullish side British Gas are talking about having a further 100k meters installed in 2010,that is 8500 per month,way above current installation rate.Taking into account other contracts we should be looking at end 2010 installation rates of well over 10000 per month.Obviously margins will be lower on that part installed by third parties.
What now begins to come into play is recurring revenues from maintenance and data provision which should double year on year for the next three or four years.