I tend to disagree. The energy market has rapidly changed due to...

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leasx

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09/06/20

14:22

Post #: 45113689
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Originally posted by waterhole: ↑

I only partly share the optimism after revealing Amaysim is trying to sell its energy business and acquired OVO as nobody was looking at the negative effect of the guidance confirmation.

Having reported June, the company knows its 11 month EBITDA very well and can therefore estimate the 12m EBITDA accurately. Still, there was no narrow-down of the EBITDA-guidance, which was kept at 33-39m. Interestingly, this guidance level was maintained, despite expecting a month contribution from OVO plus several months contribution from Jenee. I would not be surprised if Amaysim reports EBITDA very near to the 33m mark showing continued low profitability, which is not a good basis - neither for going concern nor for a potential break up.

Furthermore, regulation, growth and competitive dynamics have deteriorated in the power/gas business, so I doubt potential buyers are willing to pay any premia. Would the current CEO sell the energy unit for a price significantly lower than the acquisition price? Please note he was on the board approving the acquisition and he would be exposed the huge synergy case that was presented to the shareholders was a complete farce.

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I tend to disagree. The energy market has rapidly changed due to a lot of government intervention in rates and comparisons. The CEO couldn't have foreseen that.

AYS Price at posting: 56.0¢ Sentiment: None Disclosure: Not Held
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I tend to disagree. The energy market has rapidly changed due to...

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