UGE International Ltd V.UGE

DOE target/email from CEO...

[alleyesonme]

If you are on the mailing list for investor updates you would of received a email from Nick with commentary about the recent DOE goal to increase community solar 7 or 8X by 2024...having a new CFO and three board members replaced has me very curious about what's happening behind the scenes. I have no idea but I can't help but think there was significant differences on the board and with the CFO. I noticed on the new website they say they will partner or buy development stage projects. They must be discussing project sales or capital raises maybee even mergers or acquisitions?!?.time will tell...what do you guys think?

[BCdude]

Hi Alleyesonme, No idea what could be happening, but hopefully it's a good surprise and not a bad one. Hard to imagine how they could acquire a company (they have negative free cash flow for the foreseeable future), and I hope they are not acquired for reasons already mentioned. What I would love is for them to focus on building out their backlog. If they can do THAT, opportunities will come

[alleyesonme]

Hey dude. I agree with you, they need to focus on bringing the backlog online and there's no reason to think things aren't going as planned. We keep hearing about supply chain woes yet across the USA the past 2 quarters saw record installations....I'm surprised to hear "possible growth through acquisition" in comments from the CEO this year a few times now...this suggests

[SmilingDog]

I agree - the organic backlog AND pipeline are so robust I'd be surprised to see them go out and acquire anything. I imagine these comments might be for a few years out (2024+) once UGE becomes a cash flow machine - at that point it starts to become a question between project/company acquisition vs capital return (either dividends or buybacks) - as we know the organic growth requires little

[BCdude]

I completely agree with you, Smiling Dog. In three years' time, once they are generating high-margin recurring revenue and have line-of-sight on more, then they will have plenty of options for acquiring projects/businesses or introducing a dividend or share buybacks. What they have to do is show the market their backlog is legit. Once they do that, I think we'll see a significant re-rating