News item from 30 April... Shell and First Utility might be trying to prevent OVO from growing. OVO and First Utility are the two largest independent retail energy companies in the UK. By favoring Co-op Energy over OVO, Shell gains a new trading customer at the other creditors' expense.
"A robust bid from OVO sits and collects dust on the table as the shareholders of the Company are forced to sell FEL to Co-op Energy for a pittance. If the market needed evidence of what could happen following Shell's purchase of First Utility, it now has it. I believe this is a stunning example of conflict of interest and unfair competition. The regulatory apparatus should not let this go through without proper scrutiny. If a sale to OVO continues to be ignored, I expect to report Shell's actions to the Competition and Markets Authority (CMA) and other appropriate regulators."
So perhaps if the CMA intervenes we will get a little something back?
Looks like some players in the market either mis-interpreted the earlier RNS, or (as I think) deliberately mis-interpreted the earlier RNS causing a huge "pump and dump" situation whereby they piled into the share creating false hope, then dumped all the shares keaving some with huge losses I presume. I saw it happening but luckily decided something did not smell right. The Company issued an RNS to explain their earlier RNS:-
In hindsight i should of took what was left as another poster on this thread did earlier this week , not as if i have not had total wipe outs before.
I tend to concentrate on my better picks ignoring situations like this when the company appears to give the small PIs the hint to dump.
At least with clln the chance to act was not as clear cut.
( The big trouble occurring over the weekend )
Two big wipe outs by mid April this year.
Just searched to see if he ever commented , only thing i can see is a "hot stocks tip "
Sept 2014........... Some Dr who left to join insp.
That tip not much better 1.60 then 0.0475 now .. looks like some CA there as price he gave not matched by historic chart.
Anyone go for that one ?
I sold first thing yesterday morning for a significant loss as this is not worth anything now to independent investors as I understand it. I had hoped that if it was sold it would at least be at a price to recoup some of our losses.
It is in the RNS:
"The Company Convertible Loan Notes (and the Preference Shares) rank in priority to the Ordinary Shares and it is therefore expected that the distribution to Shareholders will be £nil under all likely scenarios following Completion."
Wish now I had listened to those slagging off this management and had not tried to pick this up at what I had thought was the bottom. Oh well...
Well we have an RNS but not the one you wanted. All that hard work by many people and faith in the boiler concept and the people in charge comes to nought.
Another good example of the risks investing in AIM.
Exactly my thoughts. I've just payed my emergy bill for the winter months like so many others. Flow group must be towards the end of getting their bills for the winter months paid. I can see this share rocketing up if we get an RNS to confirm the re-structuring has been a success. An RNS like that could see the sp triple easily IMHO. Just hope that is what we get!
I'm not sure they need additional investment. Energy supply companies lose money in the winter and make money in the summer.
They get the same direct debit for 12 months from customers however they pay out more in Gas and Electricity in the winter time . So they have got through the worst period from now there cashflow and profit will improve.
Hi. I see your point. It seems to me FLOW may need more investment. However in the medium to long run surely this Company is worth investinmg in. The customers are there. I suppose 250,000 customers times a profit of just £50 per year would give £12.5 million looking at it very basically.
If Shell did take it over they could combine the two operations. One set of offices to close up then some of the staff could work at the other office one presumes. Shell are cutting out the middle man (themselves) in effect by enytering the energy supply market. Also let's not forget a lot of these energy suppliers effectively offer hadly any credit via the payment by direct debit method which to me is scandellous!!!
A buyout by Shell is very possible IMHO. If they can see good profits in five or so years time I can see them snapping flow up. It's small change to them.
customers and Shell having bought that other energy supply Co last year (name escapes me) you would have thought that Shell would be looking at Flow group surely! I mean the market cap is only 1.14 million and they say they have just under 250,000 energy supply customers. The sp is so low it's suspicious frankly but occasionally situations like this can reap massive rewards. I've dipped my toe in again but very small buy.
unfortunately in my investment career I have seen this many times. About 2 years ago BIOM looked just like this but it seems to be recovering now. Where there is life there is hope and Flow is not dead, yet.
seasonal requirements followed by very high gas prices for the last 4 days or so does not explain the massive sp drop for me. Asif panick has set in. The bottom line is they have said they have just under 250,000 energy customers in the UK. I find it hard to believe that this Company is so badly set up that that overall they are NOT making money from those 250,000 or so energy users, even if it is only a small profit. After all new management was installed on 30th November 2017 and surely with their experience they have been re-organising the Company to make it profitable.
Hoping for a re-assuring RNS!!!
I usually average down rather than sell the lot.
Its a case of wait and see here I think.
It's a shame this RNS about their hedging strategy does not specify any real information on their position. Wholsale gas prices have risen steeply in the last few months and this could be another reason why Aviva dumped the lot. If Flow Group do an RNS to give good news on hedging position (if they can) the sp would rocket IMHO. After the sp tank I'm sure if they have any good news it will be out next week.
Thanks for responding Emerald.
Not a lot of information around I went in heavy with the fund raise then topped to in flow far to early.
Really glad I'm not the only one who does not cut losses .
Might be wiser if i had but with AiM not sure that's the way to do it.
On reviewing action around time i noticed Winny suggested ORE instead , i recall looking at that and thinking he must be joking , in hindsight would of been 35% better off.
So why did Aviva etc.... sell? Is it against their policy to hold shares in a Company that borrows money in this way (because it could be iffy??) or some other reason??
I suspect it's against their rules so they dumped to comply which means the end is not nigh for Flow Group, at least for the forseeable. Maybe other investment Co's will be taking a stake. After all just short of 250,000 customers plus Shell bought out a fairly small energy supply Company last year and so are entering the energy market themselves. Maybe Flowgroup will get a bid from Shell. You never know.
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