Ups and DownsWell, the market did not like UGE's business update today. Admittedly, the bottleneck in bringing their substantial backlog into production is frustrating, although it seems a lot of that stems from what is going on in Maine. The company reported a large number of Maine projects in 2020, and it seems that state has had to take a couple of steps back before, hopefully, moving forward.
It's possible some of the new states entered in 2021 (Pennsylvania, Maryland, Virginia, New Jersey, and Massachusetts) could take longer to deploy than expected, too. it all depends on how the state regulators move forward in planning and implementation.
On a positive note, New York continues to move projects through to production so we know that it's possible. I suggest patience. We know this will become a cash cow once these bottlenecks with grid interconnection start to be resolved.
Plus, it's worth noting that if UGE were to sell its current backlog onto the market for cash it would get substantially more than $1.20 per share. Based on assumptions that I made a few months ago, they would likely get more than $4.00/share.
Interesting to see them dip a toe into the Arizona market, too. Perhaps that state is further along the development and regulations curve?
GLTA