Gore Street Energy Storage Share Discussion Threads

[kev0856153] 24/4/2024 12:31

why is this pish not going up

[wassapper] 24/4/2024 11:08

Some more positive news from GRID today. Should help here as well

[melody9999] 22/4/2024 19:01

CC - NG have egg on face wrt battery revenues. THey'll be working hard to avoid further embarrassment.

[cc2014] 22/4/2024 12:49

There is currently a seller or two in the market. Patience required.

I look at it this way:
Energy generation in the UK will move from 45% renewables now to 70% by 2027. That's only 3 years and is a dramatic shift.

How many new gas peakers will get built? None. None will ever get built again in the UK so those assets will slowly come off the system.

How many new batteries will GRID, HEIT and CORD install in 2025? None. GRID and HEIT have no cash and GSF are prioritising the USA

Which leaves how many batteries will be built by others? I don't know, but I suspect the cost benefit analysis looks very different than it did before Christmas. There's plenty in the pipeline but how many of these are actually funded to completion I suspect is very open to question. Not as many as the market needs is what I think


So, I think whilst revenues will continue under pressure for the next 6 months after that not only does everything come back in line but starts to whipsaw in the other direction because renewables are coming on line but very few new batteries.

I'm talking my own game of course. If someone is kind enough to give me an exit at 90p I'll be out.

[alan pt] 22/4/2024 10:26

Just stuck in the trading range where it has been for the last month

The extraordinarily high dividend would suggest that the market expects a cut, but it's hard to see what would force that

Neither the GRID news nor the prospect of US interest rate cuts receding has provided a negative shock, so it feels more like it wants to break upwards than downwards, but it might take a while yet

I'll keep collecting the divis and wait

[scruff1] 22/4/2024 09:12

Ex girlfriend george ? Thats surprising

[george stobart] 22/4/2024 09:07

My ex girldfriend's uncle says big city buyers are coming for this one. He know many stuff unlike you plebs

[scruff1] 22/4/2024 08:51

This mornings trading doesnt give much hope of a reprieve. There is quite heavy selling and the price is already below that indicated.

[scruff1] 22/4/2024 08:27

Covered perhaps I should have said. They claimed that the US projects due for completion in 2024 (more than doubling op. assets + lifting divi cover x 0.5) costing (from then to completion) £190m was fully funded. They had options to lift debt to £230 but aimed to keep it below £150m (21% of GAV). 75m cash

[loglorry1] 21/4/2024 22:53

Financed with what? They have 60m of cash left.

[scruff1] 21/4/2024 22:22

The projects due for completion in 2024 are already financed

[melody9999] 21/4/2024 22:14

coco 1356 - thanks for that response. Makes sense

[loglorry1] 21/4/2024 19:16

How can they double capacity with the cash they have? Yes they can take project debt but that comes at a cost. Does that not imply what they have is worth £60m if it can be doubled for 60m?

[leopoldalcox] 21/4/2024 16:42

General info on California BESS capacity plans https://www.energy.ca.gov/news/2023-12/cec-awards-30-million-100-hour-long-duration-energy-storage-project

[cocopah] 21/4/2024 14:54

Because capacity and income are not the same thing.

[wassapper] 21/4/2024 10:56

Given they will double their capacity (and pretty much all out side of UK) in 2024, why would the current divi not be sustainable? Or even increase it?

[cocopah] 20/4/2024 14:24

I absolutely see the benefit of investing in different jurisdictions, especially the USA. My problem is that it’s difficult to see through the opacity with respect to revenue generation in the short-term or fully understand whether our 1 hour batteries is the optimal way to benefit from the different revenue stacks. Either way, it’s clear that the jury is out when it comes to the market analysts being convinced about income and dividend cover, which is seriously holding back share price performance.

Initially, I wanted to hold this share for the long-term, with a stable share price for income. However, now, when the market improves, I will be looking to exit and seek a safer haven for income.

Whilst communication has improved somewhat, I do believe that they could be more upfront (and I’ve given many examples on previous posts).

From memory the next update is in July so it’s just fingers crossed until then.🤷‍;♂️

[stemis] 20/4/2024 10:38

I think we will face a dividend cut in 2025 and still trade at a considerable discount (the worst of both worlds).

If that was the case then maybe it's because the NPV would be based on over optimistic future cashflow forecasts, the NPV of which, constitute the 'NAV'...

[melody9999] 19/4/2024 20:37

Coco 1351 - can you perhaps share your investment case for remaining invested in GSF...assuming that is the case?

[george stobbart] 19/4/2024 20:24

Chatter in the German meet lonely Ukraine ladies chatroom that GSF will receive a takeover bid on Monday RNS

[waterloo01] 19/4/2024 20:17

Do give it a break. Uk market improving and Irish and us assets look well placed. A lot can happen sentiment wise before 25.

[cocopah] 19/4/2024 19:37

Sobering update from #GRID (write up in Citywire today). They may be mainly U.K. based but nevertheless it bodes ill for the sector. Our 1 hour batteries remain a questionable strategy and the lack of information on revenue leaves us all in the ‘fingers crossed’ position. I think we will face a dividend cut in 2025 and still trade at a considerable discount (the worst of both worlds). 🫣 🤷‍a94;️

[stemis] 18/4/2024 17:36

Yeah, but the NAVs are just what the board think their subsidiaries are worth based on cashflows and growth assumptions none of us know.

[masurenguy] 18/4/2024 16:39

GRID unaudited NAV per share of 129p compared to the current shareprice of 38p. GSF unaudited NAV per share of 111p compared to the current shareprice of 64p. Crazy !
No position in either, just monitoring.