RE:RE:RE:RE:RE:WhyHi HugeCrane,
I'd advise you to go to the Sophic Capital website and look at a few of their reports on UGE over the last six months. They do a pretty good job of explaining the details. In short, there's no IP involved, but UGE is focused on the commercial/community sector that is too small for utility scale project developers to be meaningful, while avoiding the micro scale of residential solar installations. They hit the sweet spot in between the two, and are leveraging their decade-plus of experience to launch a "build-own-operate" model than, as you say, has much greater revenue and higher margins compared to their former build-sell model.
It's worth noting that the ~$130+ million of backlog they currently have is a net-present-value of discounted cashflows, which will actually result in around $350 million of high-margin revenue over the next 25 years. It's worth noting that while solar has been around for a long time, only in the last 3-4 years did it become the cheaest energy source available. And commercial/community projects have lagged as a result, which is why UGE is several steps ahead of the competition.
As Sophic notes, they have a solid industry reputation and many of their current clients hire them to build out solar projects on additional buildings. Repeat customers.
This is a decent article to read as well, from Wood Mackenzie, about the future of commercial solar. UGE is one of the pioneers they mention.
https://www.greentechmedia.com/articles/read/the-us-has-145-gigawatts-of-untapped-commercial-solar-potential
At $10.00/share, UGE would only be valued at $360 million (fully diluted), which is about the NPV of their CURRENT backlog. So the tight share structure helps immensely, and I could see the share price hit that within 2-3 years as they keep adding new projects.
Cheers, BCD
HugeCrane wrote: Gotcha. I don't trade. I look for long term holds and UGE was probably the only micro cap I could find that really peaked my interest. I love their business structure and how they can potentially make money throughout the entire process of the build (except the manufacture of solar panels). Also love how they are taking their time and trying to do things right. There's just not a whole lot of commentary on here about the fundamentals other then the stock is gonna go up hahah. Not bashing, I just don't have time to sit on my brokerage account and day trade. I have a business to run.
Does anyone know much about the engineering side of things? Like at some point doesn't the engineering of the projects become very repetitive? I read on here that somebody figured the engineering arm could arguably be spun off on its own, but how much "engineering" is needed when the projects are all very similar? Reason I ask is because in my experience anything in this world that is largely repetitive is exposed to the fact that somebody will always do it cheaper which would affect revenues. Is there patents or ip involved?