Yu Share Discussion Threads

[come2papa] 19/10/2021 09:52

Just don't know why people hate Uncle Tom just admit people he is way ahead of the curve. He is highly regarded in the city Fountain of Wisdom on UK shares special AIM

[sparky333] 19/10/2021 09:39

Your starting to bored me now as cannot see the wood for the trees.If you did some actual research you may actually like what you see. If not fair enough let's chat again in 12 months time and see where we are then ?

[sparky333] 19/10/2021 09:37

Typical village idiot, I have never said an actual placing is coming and your term cash call is deceptive My description of a cash call is discounted placing to strengthen the balance sheet are or down debt.Neither of these apply are not required If and I say IF YU had an opportunity to do a reverse takeover of a far large rivals client book and I am talking many multiples of the current client bookThey may have to finance in some way and you always assume a placing at a deep discount why ? Because that's what your use to in the shares you stalk.YU have a strong balance sheet and no debt unlike 90% of other stocks on the AIM.

[come2papa] 19/10/2021 09:34

All you Rampers are nursing huge losses Sp performance 1200 to 220Talk about destroying shareholder value

[come2papa] 19/10/2021 09:32

Nice to know your are all now singing cash is needed Uncle Tom is way ahead of the curve

[sparky333] 19/10/2021 09:32

Not me,In at 50p This company is nothing like the one back in 2018 If you bothered to read the data, all metrics smashing new records Even through C19 and the blip down in energy usage they managed it and thrived picking up Bristol energy for a net 900k doubling the customer base at the time.Since then we have moved to over 21,000 generating record turnover and profitable now.It is now about rapid growth and the foundations are all in place, tried and tested.Oh yeah did I forgot to add YU are also hedged out until 2023 so no issues with gas price as they back to back hedge contracts and also no price cap in the SME space like domestic.This is what the market are missing and tarring everyone with the same brush, YU are not Domestic. We can go on and on but I know where are YU are going and very patient first it will £3 then 5 and eventually £10 which even then is only 160m MC

[come2papa] 19/10/2021 09:27

You guys are sitting on huge losses this share was 1200 pound

[sparky333] 19/10/2021 09:25

Easy money if people actually did some research and had patience.

[sparky333] 19/10/2021 09:17

Also it is all speculation with regards to YU acquiring a rival. Coker has some valid points that growing organically maybe the way forward and no harm in thatBut if YU can buy a client book , tripling the current client base in a fire sale from a distressed rival it would be bad of the BOD not to consider it Let's not forget YU are dripping in cash and debt free Also you automatically assume a discounted placing because that's what you are use to.Many other ways to fund and acquisition of this nature and we are not talking huge sums The BOD have made it clear small to medium would be funded from cash resources a large scale reverse takeover would be different.

[sparky333] 19/10/2021 09:11

Lol you deepverge losers are really a pice of work.If you want to talk placing have a look at your own stock portfolio deepverge burn through cash constantly and what's your market cap v turnover again ?Oh yeah ridiculous.Chalk and cheese, YU are a well run outfit , profitable, huge turnover and solid through a once in a life crisis in the energy sector.The strong ones like YU will become monsters once the dead wood have been removed off the playing field.Unlike deepverge who will still be diluting shareholders for the next 5 years if they are still around

[powerslave1] 18/10/2021 15:50

I believe they were. They were also the no1 supplier for customer service, according to which.

[sparky333] 18/10/2021 15:39

Another domestic gone.Go to energy 22,000 domestic wonder if they are linked to CNG ?

[sparky333] 18/10/2021 13:22

Hedging is a great de riskier for times like this as we are all finding out but this does have negatives like when COVID hit and the price collapsed but that was due to the usages falling so dramatically In an ideal world the hedge was 100% match the usage so irrelevant but we are realists and this never happens and always margin for error in under or over hedging.It's the nature of the beast and always will be. Currently YU are reaping the rewards of back to back contract hedging but it cost them 1.8m in 2019 and now made them 1.2m so far.Ultimately all you can hope is that over say a 5 year period it evens out

[powerslave1] 18/10/2021 13:11

Thanks Sparky.

That is the key point for me, is this recurring income, as without it they remain loss making.

If the reason if that for some reason they are overhedged, and they remain that way, the next results will have a really big number in that box. But if their process remains the same it will turn to a negative in a falling market.

If it is a one off mtm gain on Bristol it will disappear once the Bristol contracts have expired. An equivalent deal with CNG wouldn’t give this benefit.

I’m interested in this point as it is fundamental to their profitability and I don’t understand why it is there and whether it will disappear in future periods……;

It certainly seems disproportionately large for a back 2 back hedged book of this size.

[sparky333] 18/10/2021 12:33

You seem to know your stuff, I am not into derivatives and that level of detail.Either way nice bonus which I hope is repeated

[powerslave1] 18/10/2021 12:27

Hey Sparky

So you think this is energy they have sold back because customers are consuming less, nothing to do with MTM profit on the Bristol deal( there was one, and it was pretty substantial, so is in the numbers somewhere, and is non recurring).

Remember that the big spike in prices came in September, the last results were for the half year to June.

My thinking was, average price in 2020 about 45/MWh, average price in H1 21 about 65.

The derivatives gain was 1.2m, so would have been power bought for 2.2m and sold for 3.6m (roughly, if the 45-65 2020-2021 delta caused the gain).

£3.6m is roughly 15% of the energy they would need to supply a £65m book.

Not sure why this would be an ‘unrealised217; gain, surely if it were sell back of an over hedge it would be realised.

This is why I think it relates to hedges bought for Bristol. E.g Bristol sold deals at, say, 55, and made, say, 5. Yu bought those deals unhedged, bought hedges separately at 45. The 5 margin on the normal deal sits in their normal p&l, the 10 one off mtm gain is the derivatives line, and is unrealised as the delivery period of the contract hasn’t completed yet. If this is correct the derivatives line will drop to £6-900k next time, as the hedge gradually delivers. If it is an over hedge, that is structural and continues it will be much higher next time……

[sparky333] 18/10/2021 10:14

How do you get 15% when energy has risen hundreds of percent ?So if clients average 90% usage in Q2 and they bought say £15m worth That is 1.5m they sell back which has risen 300% so they sell back for finger in the air 4.5m I am making these numbers btw But currently it is more profitable to sell back usages hedges that provide to the client so operating below estimated budgets is a good thing, but the opposite if they are consuming more than estimated