GREY:CRIUF - Post by User
Comment by
marketsenseon May 18, 2018 12:47pm
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Post# 28053176
RE:RE:RE:BAD COLD WINTER WEATHER /GOOD MILD WINTER WEATHER
RE:RE:RE:BAD COLD WINTER WEATHER /GOOD MILD WINTER WEATHERCan't answer your question directly because this type of energy reselling business is very
complicated. To manage effectively and profitably from year to year there are so many
variables not the least which is weather. You have contracted rates, energy purchase
prices from primary producers and customer attrition all to deal with. Hedging on energy
prices is a way to try and cover or insure any loses so you can see how unpredictable and
complicated their business is. That is probably why its difficult to analyze and quantify with
any certainty future growth and profitability. Management has to be very sharp and vigilant
at all times and even then a certain amount of luck is required to stay profitable. That said,
the issues that prompted the short attack and dragged the stock price down are now being
dealt with so IMO, the prospect for a turnaround are looking better than ever. The solar
business is being ditched, the lawsuits settled and debt issues being addressed.