on the rise.....

Looking good. Good little growth story. Up to $1.20 today.

I have copied the data below from Sharescene :

Here's an update on AEN:

AEN: Australian Energy: a reseller of electricity mostly to Victorian Small- Med cap businesses; they are now in the process of spreading their very successful business model to South Australia and New South Wales (Warren Buffett cookie-cutter devotees would approve!)

Market cap: $56m (good - nice and tiny!)
No. of shares: 45m - again good- nice and tiny

Earnings history:

2002 -6.2c
2003 +4.1c
2004 +6.5c
2005 +9.3c (forecast just a few weeks ago)

That's impressive growth of around 50%

today's share price: $1.13

today's pe, based on 2005 forecast: 12 (just scrapes in as a bargain!)

Other financial curiosities:

debt-free (excellent!)

roc and roe for 2004: 64% (incredible!)

ebitda since 2002: -2.7c, +2.0, +3.6, +5 (excellent again)

cashflow: 2002: -4.8; 2003: +2.5c 2003 + 4.3c 2005??? (that's excellent too)

Other interesting things:

(1)Acorn capital just increased their holding to 9% a few weeks ago - Acorn has a good stock-picking record

(2) business success: AEN has succeeded in electricity reselling when most other companies failed. Something to do with cutting overheads to the bone so they can deliever a competitive price.

(3) They now offer that delightful opportuntiy to invest in a business after it has proven itself and is now in the process of expanding its model elsewhere. Presumably Soth Australia and New South Wales and Queensland will work too. Not certain about that. There are startup- costs - these start-up costs hurt their second half 2004 profits, causing the price to slide and for investors to lose a bit of confidence.

Also AEN faces the irony that heaps of success in signing up new customers can hurt them initially as it was taking them 4 months from sign-up before tehy received their first payment. They are working on this!

(4) They are working on ways to drop costs further: the full-year cost of servicing a customer has dropped by 30%

What's bad news for AEN: mild weather!

Chart: AEN might be on the move up: getting through $1.10 was a big achievement for it and it has held this level for a few days now.