Willow67
05 Jun 2015
Re: Tipped yesterday by Naked Trader History suggests this is a tactical sell now. It has gone up in a straight line from 450 to 575 and is now just about touching the top of its 2 year trading channel. The challenge of course is the results being out on Tuesday next week. I am NOT selling, at least not now, as I am a long term holder (and its my second biggest holding) but I fully expect the shares to trade down towards 525-530 area, perhaps after the results, on profit-taking
gretel
05 Jun 2015
Tipped yesterday by Naked Trader [link] "Another one I bet you never heard of is Energy Assets (EAS). I’m already up 70% on my first buy of these and I’ve bought some more this month. This company is the largest independent provider of industrial and commercial gas metering services in the UK and a provider of electricity metering and data services. Demand for the installation of advanced utility metering and related services remains high and, as a result, Energy Assets says it continues to experience strong trading and growth. This area of the market just keeps on growing and Energy Assets is taking full advantage of its position. It just keeps announcing deals too – most recently with City West Homes and Westminster Council. This is another boring one I expect to hold for some time."
gretel
04 Jun 2015
Re: FTSE Small Cap entry tonight? EAS did indeed make it into the FTSE Small Cap last night....
gretel
03 Jun 2015
FTSE Small Cap entry tonight? In tonight's FTSE reshuffle it seems to me there's a good chance EAS will get promoted from the FTSE Fledgling Index to the Small Cap Index. If so we should see continued demand for the shares from trackers etc at the very least.
Willow67
29 May 2015
SMS SMS should takeover EAS. I am surprised it has not been considered. SMS has a market cap of £300m and trades at x27.5 current earnings, EAS a market cap of £150m at x17.5. SMS has £50m+ of an unused bank facility but could fund the entire acquisition through a rights issue/placing given the premium its shares trade at. As an aside, I dont particularly understand why SMS will pay out £2.5m in dividends this year when its opportunity set both organically and with EAS would appear to be so good. EAS have stated growing their asset base is bering prioritised over dividends, which makes sense to me, although to be fair EAS is a slightly more levered business (net debt/ebitda x3.4 vs x2.9 for SMS) so that could be why. I guess shareholders like to see cash coming in but my view is if you invest in a levered asset heavy business that generates a return of 15% p.a. (rental income from assets vs cost of finacing them), why would you not re-invest your cash in paying doewn debt or buying more assets?!
Willow67
26 May 2015
Trading channel Having said I am a long term holder, it is hard to ignore the fact the recent rise has taken them to within 20-25p of the top of the 12 month trading channel that currently seems to span 440-575. If we happen to see a further quick rise to the top of this channel I will be tempted to exit and wait for a pullback. The stock has shown a degree of volatility in the past and I don't see why it won't going forwards, even if the trend clearly is strongly up.
Willow67
19 May 2015
Re: New highs now Last trade at 539. Nimble folk might hit that and wait for a cheaper point. I cant be nimble for will hold tight.
Willow67
14 May 2015
Re: New highs now Great to see this finally breakout. Feels a long time coming. I am looking forward to the results and forward guidance. I think until then the shares can go higher before they then settle back into a holding pattern
gretel
12 May 2015
New highs now ....and a break above 500p with late buying at 505p.EAS' current year P/E ratio remains some way lower than SMS's, so still some ground to make up.
Willow67
06 May 2015
Re: Excellent trading update and if they fall back instead to 455-460 instead i will top up.....cant lose either way (errr)
Willow67
30 Apr 2015
Re: Excellent trading update Shares feel posied for a breakout above 500 on the next whiff of positive news
Willow67
22 Apr 2015
Re: Excellent trading update They certainly seem to be accelerating their meter installation with a whopping 20k installed between 31/12/14 and 31/3/15, which is very encouraging. As always i'll be keen to see what their cash position and generation vs spend looks like when they publish their numbers in June.
gretel
17 Apr 2015
Excellent trading update The market will now look towards this year's forecast of 29p-30p EPS now that 25p+ EPS is in the bank.EAS' cash flow is hugely attractive, and of course the recurring revenue etc.And EAS has been tipped today by Questor in the Telegraph....[link] "Questor share tip: Energy Assets still a buy The smart meter company is building up a strong core of cash generating assets that investors should tap into, says Questor. Energy Assets 475p -2p Questor says BUY ENERGY Assets [LON:EAS], which installs smart electricity and gas meters for industry, is seeing revenue and profits rise as customers try to save money. The company said yesterday that the core meter asset management division – responsible for 43pc of group revenue – which installs the meters had another strong year. The group reported it held 365,000 meters at the end of March, up from 327,000 meters at the end of July, and about 163,500 a year earlier. The market expectation is for full-year pre-tax profits from those meters to reach £8.8m, up from £6m last year. The company should generate 25p in earnings per share for the year when it reports results on June 9. Questor thinks the long-term outlook for the company is good. It buys smart meters, installs them and charges an annual fee for their use. The average meter costs £850, and generates £135 a year in rental fees for Energy Assets. The upfront capital cost of the meters is funded by debt that is paid off over an eight-year period, but the meter can last at least 20 years. The rental fees Energy Assets earns are guaranteed by blue-chip names such as npower, British Gas and Gazprom; the fees also rise with the Retail Prices Index for up to 15 years. Once the company’s debts are reduced it can start paying dividends. The payout is expected to start in the year ended June 2016 at about 7.6p per share, or a prospective yield of 1.7pc, and rise sharply thereafter. The shares have risen 50pc since we recommended them 18 months ago (Buy, 317p, October 4, 2013). Questor likes the growth profile and income potential despite the risks inherent in investing in such a small company at an early stage. The shares aren’t cheap, trading on 18 times forecast earnings, but due to the growth in revenue and profits that falls to 15 times next year’s earnings and 12 times after that. However, Questor thinks the potential for steady cash generation makes this a share for the long term. Buy."
gallant02
07 Feb 2015
Re: Macquarie have 645p target Macquarie have every incentive to ramp the sp when they still own nearly 50%...
gretel
02 Feb 2015
Macquarie have 645p target Good coverage this morning - I hadn't seen that Macquarie had a 645p target here....[link] "Ryan and Buckle invest with EASE Citywire AAA-rated veteran ethical investor Audrey Ryan and AA-rated Iain Buckle have upped their exposure to meter management business Energy Assets Group (EASE) following a slide in its share price. The duo lifted their exposure to the business to 4.2% worth £4.9 million at a share price of 432p. Shares in the company have recovered most of their ground since a sell-off earlier in the year. Numis rates the company a buy with a price target of 530p while Macquarie Research rates it outperform with a price target of 645p. Sentiment regarding energy efficiency stocks has dropped sharply alongside energy prices since last summer. The shares are held in the team’s Kames Ethical Cautious Managed fund, with a small number managed by the company’s Kames UK Smaller Companies fund."
