February 2020


Stock I'm watching this month:-

EOL - Energy One Limited

Sector: Technology
Market Cap: 79 Mil
Price/Earnings: 58
Price/Book: 8.41
Return On Equity: 16.29%
Return On Assets: 8.76%
Debt/Equity: 2.53%

Reasons to watch: EOL provides softwares and services to wholesale energy, environmental and carbon trading markets in Australasia, UK and Europe. EOL operates in a niche market, and it's software currently dispatches almost half the physical electricity in the Australian National Electricity Market and manages more than a third of the financial derivatives. It's software is responsible for scheduling the transport of 40% of the domestic gas in Australia. Their venture into UK/EU will prove very profitable if successful as the EU/UK market is more than 10x the Australian market.

Risk: There is always a risk when a company expands offshore. Also, EOLs shares are very illiquid. If people start selling, the share price can drop very quickly.

Sentiment: Hold
Disclosure: Held
Current Price: $3.54
My Strike Price: $3 (Discounted Cash Flow Intrinsic Value: $3.35)


Disclaimer: This does not constitute any financial advice or stock recommendations. As always, Do Your Own Research.

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