Redt Energy Share Discussion Threads

[bluechimp1] 26/11/2018 11:42

hxxpS://reneweconomy.com.au/labors-smashing-win-in-victoria-a-huge-tonic-for-australias-clean-energy-transition-80141/

Might be of interest re. election win in Oz and what this means for energy storage etc..

[spud] 25/11/2018 20:52

Let's just wait & see. It's a make or bust stock atm. spud

[alchemy] 25/11/2018 18:22

From my weekly input from Chris Goodall Who wrote the Switch.Oh for an order yeah big! 5, Switching 'peakers' to batteries. A important symbol of the changing energy landscape. Leading Californian utility PG+E announced that it would replace two gas 'peaker' plants (and one conventional gas power station) with huge battery farms that may become the biggest in the world. The Californian regulator appears to have accepted that storage will cost consumers less than maintaining existing power stations. The capacity of the batteries will be about 2.3 GWh, about twenty times the largest lithium ion system in the world today at Hornsdale in South Australia. I think that this may be the first time that a utility has explicitly stated that it is replacing peakers with batteries.

[alchemy] 25/11/2018 12:13

FWIW (very little) . I really do hope that the catchers on catch onto this because there be lots to catch onto.If we have 50 % renewable sourced in U.K. now if we accelerated store to 40% pc that we'd be at 70% effectively renewable in no time .And the role Redt could , Will, have in that pretty remarkable .

[tradermel] 24/11/2018 10:36

The monash video will be used as an advertisment for clients, so the wording is suitable for their ears, not ours.

If the company have landed 1687 units sold (from RedT sales slide) and they expect to sell 1197 at the higher price (Red's own claimed sales) then ignoring margin on sales but concentrating on the margin from services and choosing a low margin of 4% that is an annual revenue stream of £4.2m. This will be repeated revenue. The revenue on just the first phase of the German deal of 4%, then the EUR37m will result in EUR1.5m revenue annually, just on this one order. This makes perfect business sense to me as a stand-alone sum worth chasing, especially if you then add on phase 2.

You see how little revenue Red have to make on the actual sales.

The company will make margin on Gen 3 sales, obviously on the German deal these will be scaled back. IF the german deal is secured!

[owenski] 24/11/2018 10:22

Quote from the latest 'Monash' interview on BRR, 'our business model is all about making cheaper energy costs for our clients'.

That's the problem here, I've heard the CEO often mention about saving clients money - all well and good - but it's still not clear how RED is going to making money and as such it's difficult to make valuation models on RED.

Even with the German deal factored into broker forecasts, RED looks to remain loss making for the next 2 years. Which means more funding again and likely dilution.

This might turn out to be a great business for energy market participants but maybe not for PI's.

[ts0mev] 21/11/2018 17:26

Jamieboy12, it will happen. Just give it time.

[jamieboy12] 21/11/2018 17:14

Apart from people on this chat,, all you ever hear is good news about redt,, in 3 years I don’t think I have ever heard any bad news, so why why why is this still sitting under 7p,, I can’t get my little head round it,, if you were not in the chat and simply going by news reports,, there would only be good news,,, and then you come on here and all you ever hear is,, they need a strategic partner,, they need financing,,,jabil this,, German deal that,, blah blah blah,,, honestly cannot understand why this is below 10p,, monash was announced to be up and running the other day and then the price goes down...WTF

[tradermel] 21/11/2018 14:35

As a little aside are we all aware that Red are currently only selling only Gen 3 units. The first Gen 3 units will be allocated to the Anglian deal and is still on target as per the dates contained within RNS's. Edited:

BTW my post 2602, did anyone follow up my advice and ask questions?

[bluechimp1] 21/11/2018 11:55

Before we get financial close I wonder if we will first get an update on the strategic partner as Red presumably will need to show they will still be around to provide long term guarantees on the units, which is no doubt a condition of the arrangement? Just speculation but I wonder if it might be NEC/NEC Energy Solutions.

[quanglewangle] 21/11/2018 11:01

Some speculation about next news: "Financial close" on German deal slated for by 31 December, which is a Monday and they like making news announcements on Mondays. However it is between Xmas and New Year when nobody is about. From the pattern of previous announcements, 17th would be a possible date too.

[ts0mev] 21/11/2018 08:08

2666
Monash is a great testament to Red's capabilities. As Scott said in the video released yesterday there are a lot of companies making noise but very few actually delivering on their claims. IMHO that puts RED upfront as a leader. That said the Monash order was received one year ago. As for the SP, this is AIM and MMs have leverage in the current situation.

[ts0mev] 21/11/2018 07:30

2661 and 2357 suggests jimflint claims he already got out and is not revamping. Really? If I were in Norway or Iceland I'd swear there was a troll in these parts.

[bluechimp1] 21/11/2018 07:28

Might be of interest. RNS from Gore Street fund,who we think are funding the German mega deal, on the terms of another contract. If we assume Reds will be similar, then likely to receive substantial funds upfront to pay for initial costs.

[wheeze] 21/11/2018 07:18

jimflint, the energy storage sector is moving fast, as is the clean energy sector. In years to come it will no longer be seen as a 'may-do' rather a 'must-do'. The fires in California may help convince the US that climate change is real. Reliance on fossil fuels has to decrease and clean energy has to advance.A decade ago none of us would have predicted the rise of the electric car. Hopefully short term number crunching will be overcome and the value of this property will be fully realised.

[jimflint] 21/11/2018 07:08

RedT's profitability on each unit sold is insufficient to meet overheads, R&D and return. It needs volume and to attract capital. It's units are long lived, so it needs staying power. My guess is that some of the bigger boys are intrigued, but appreciate the economics are not there given current energy pricing, the unknown direction of the market and technology, so they are not prepared to move in. I could be wrong but I'd assign a high discount rate to any financial modelling which would produce a low NPV, much lower than the current share price, I'm afraid. Just an opinion of course.

[ts0mev] 20/11/2018 20:49

Good news: Backdoor Bill posted. Usually means a rise in the share price

[alchemy] 20/11/2018 20:01

Yes coherent Scott.