Gresham House Energy Sto... Share Discussion Threads

[marktime1231] 01/2/2024 16:23

Determined buying this afternoon has restored about 4p of the damage. Will it stick?

[hpcg] 01/2/2024 16:07

genista71 - agree with you about NAV. This is really a trading business and should be valued like one. That is easier said than done as the effective debt does not look to be accounted for properly? I don't know why the debt of the wholly owned midco does not appear in the interim accounts. Presumably then the RCF draw-down must have occurred after 30 June but before the interim RNS.

These are uninvestable without recent accounts, and in any case ROCE and ROE are only 5%, so hardly attractive in this day and age.

[igoe104] 01/2/2024 15:38

Big issue for me was they should of got this RNS out alot earlier These funds with inside info shouldn't of been allowed to off load their shares over the last few weeks at a higher price..

Poor management, allowing funds to benefit at the expense of PIs

[igoe104] 01/2/2024 15:25

Apparently it was leaked from someone connected to the national grid ?

[dickiehhh] 01/2/2024 15:21

Too late. PIs have probably all lost at least half of our investments Only the insiders or institutions partial to the leaked information or shorters win from this debacle

[igoe104] 01/2/2024 15:17

Any issues email them, they will message you back with your concerns..

[e-mail]

[nickrl] 01/2/2024 14:25

@fordtin gas has a slow ramp rate compared to batteries but one instruction can fill a big hole has been the argument. The move to OBP has automated instructions but lots of bess are getting small amounts probably not healthy for batteries either being cycked too much

[dickiehhh] 01/2/2024 14:23

It's nothing short of scandalous how the bad news has been leaked to the market especially after their 15th December RNS that stated the OBP and BM based on provisional data would lead to "increased revenue opportunities"Ben Guest also had the audacity to go on the MoneyMakers website and talk up the assets only a month ago, and how all the problems with the BM would be shortly solved Then the bad news is leaked and/or insiders are selling and/or ...The share price falls 50 percent from its pre Jan levels - AND ONLY THEN do the bird communicate the bad news to the market

[igoe104] 01/2/2024 14:14

This sums things up.

[genista71] 01/2/2024 13:02

When is someone going to wake up and realise that the "NAV" is a work of fiction?..it gives a false representation of value. The industry is on its knees through current trading, real money coming in and going out and yet some want to put their faith with wildly optimistic cost and revenue assumptions 5,10,20yrs out?? Total madness...

[cc2014] 01/2/2024 12:45

I had to laugh.


Jefferies the house broker says dividend cover is 0.1x

Ben Guest, fund manager says by end of 2024 dividend will be fully covered even at today's prices.


I suspect Jefferies may get the sack regardless of whether they are right or wrong.

[mr george stobbart] 01/2/2024 12:25

the call was boring and repetitive.

probably will lead to further share price falls

[fordtin] 01/2/2024 12:04

re; post #614 "latency issues with renewable energy sources have been put forward as a reason why the ESO frequently skips batteries for gas energy as power station produced electricity does not suffer from these issues."

Are you absolutely sure gas heated steam turbines have no latancy issues?

[marktime1231] 01/2/2024 11:30

So maybe it would have been better if they hadn't announced anything!

Yes it looks like the "news" was circulating earlier this week, but actually unusually large sells began on 24 Jan. Someone was pretty sure ahead of the market.

Plan A - deliver the pipeline failed. But we will redouble our useless efforts to get it done, blaming others, and continue to extend durations which was a no-brainer yonks ago. Plan B - we promised OBP would save the day but it doesn't. Plan C - there is no plan C. So much for rumours of commercial storage services to private enterprises. Cut the ambition, cut the dividend, cut the borrowing, cut capex, cut the dividend a bit more.

How about cutting some of the people who were "pleased" while presiding over this collapse?

Unbelievable that they admit they don't have the cash cover to honour the final dividend but will find some cash ... raiding the bank ... for an unspecified buyback. And, even if revenue stabilises they now say the previous dividend rate, which was raised at the start of this year, was unsustainable. That was a con then?

What about NAV, how do we know what the discount is?

If this is now such an unreasonable discount of a reliable investment sufficient to deserve an emergency buyback with shareholder cash uncovered by income perhaps the board and key investors would care to communicate their confidence in that proposition with a series of substantial purchases of their own.

And then I might buy some back when we hit ... 30p, 20p, 10p anyone?

[topvest] 01/2/2024 11:13

Blimey - HEIT appears to be in an even worse position on debt. I've exited that one. Thankfully, both small positions! Is the GRID debt being amortised yet? That is a key point on looking at renewables and dividend cover.

[bsdjj] 01/2/2024 10:13

I read somewhere that latency issues with renewable energy sources have been put forward as a reason why the ESO frequently skips batteries for gas energy as power station produced electricity does not suffer from these issues.This is not something that the battery funds admit to...

[wskill] 01/2/2024 10:09

Looking at the BESS market why will companies invest in this sector when returns are so low and likely to get lower with much more BESS schemes going live ,I saw that SSE are also opening a lot of BESS but is this to make money on BESS or to keep pricing low.

[nickrl] 01/2/2024 10:03

Jefferies are GRIDs house broker so ought to have seen this coming much earlier. Low pricing for BESS has been a known fact for last six months. Dividend is trash here for sometime imv. The Balancing Reserve product will be run via auction and has all the hallmarks of Ancillary Services although at least here they will need to use gas for a big chunk of it so will at least keep the price higher but the more BESS are commissioned the more that will want to enter this market.

[bsdjj] 01/2/2024 09:52

Well that would be the decent thing to do but no doubt they won't do it. cf. DGI9.

[yump] 01/2/2024 09:51

Lucky I haven’t got GRID but have got some HEIT - same problem.

If jeffries are brokers and were pushing grid, then they’re shysters, nothing more.

[newbold120] 01/2/2024 09:50

Maybe they should change the management fee to lower of nav or market cap?

[bsdjj] 01/2/2024 09:48

I wouldn't give Jeffries much credit. I believe they are GRIDs broker and have been marketing the fund to investors from the beginning along with the company on the basis of producing "sustainable" dividends which incidently is still on the spiel from the company at the bottom of the announcement. As recently as last summer they raised £50m for GRID last summer at 155p on projections that were woefully optimistic.Getting back to GRIDs prospects given the majority of the shareholder base arewealth managers whose clients are probably income based it is no surprise that there is a rush for the exit but as long as the NAV remains comfortably above 100p there should be some support.Would be good to see a (non-token) share purchase or two from the board and Mr. Guest.

[topvest] 01/2/2024 09:44

I do feel that GRID have been dragged kicking and screaming to admit their failings. I'm not sure they have been very open and always significantly behind the market rather than being proactive. Anyway, there is some value here now but it may take a few years to get £1 back.