We’ve been with RED for several years and over this long time, the share price has bounced around the 5-9p range in that time.
However, in 2018 the CEO has put together a Sales and Marketing team that finally seems to pay dividends (Sorry for the Pun)
For those that like to view the solution. Here is the video link explaining. For the rest of us keep reading!
RED has now established a Production product (GEN3) that they have been able to convince the Jabil manufacture to produce them in 70 places over most parts of the world. Thus sidestepping the costs of manufacturing and stock that have to normally financed by the company.
They also now have sufficient size deals over the 100+ million mark. To allow institutional investors to look and actually put together finance packages.
There is already strong interested in backing both Wind and PV farms as they are in the 20-25 year term investment. These achieve a 6-8% return. When you add the RED energy engine which allows for extended power for over 4+ hrs periods. Which both National Grid and large corp users are realising can drastically cut the electricity bill and provide Grid Balancing services to the National Grid providing the JAM to the deal. This then increases the return to 10%+ over a 25-year time span. Something that an institutional investor would think a reasonable investment.
RED has been able to obtain and 1,600 units commitment from a Germany order. As they are further forward in renewable markets. This along with the orders from the Monash University in Melbourne, Australia place them for even more growth through word of mouth. With the October 2018 event to still arrive in Australia for more spreading of the word.
In August they announced a UK order from Anglian Water again a small step for this group. However, a significant one. As this is a large well know UK company which has a large energy bill of £77 million that can see significant savings to place their toe into this new market. The potential of this client with its 1200 water treatment and water recycling centres would keep RED busy. However, this is one of the 10 companies that have the same problem. They can now deploy local PV on-site and the RED storage systems and greatly reduce their overall electricity bill.
I believe that this firm has turned the corner, all be it slightly later than most of the investors had wished.
For those that have been looking. I would suggest this is the time before the blue touch paper runs out on the share price. When large investment houses start to understand the real opportunity.
Cheer for now.