Post by
BCdude on May 26, 2021 1:06am
Pros and Cons
I fully agree with Alleyesonme that UGE remains an excellent long-term play. Even if they don't add another dollar to their backlog, based on market prices they would be able to sell their curernt backlog at around $80 million cash NET once up and running (about $2.50/share value). And that doesn't include any of the projects anounced in Q1. Of course, based on long-term recurring revenues the backlog is much more valuable than that.
Having said all this, the concerns that have popped up recently with the accounting challenges (hopefully behind them now), the delay in moving projects through the pipeline (thanks covid!), and the general frothiness of the marekts, makes me think we could see sub-$1.00 prices at some point over the coming months. Of course, if they keep adding projects to the backlog and we see existing projects begin to move through the pipeline, it might not get there.
I sold 20% of my shares at $1.65 (the ones I'd bought for $2.00+) but plan to hang on to the other 80% long term. If the stock sinks below $1.00 I'd consider dipping my toes in again.