Vertically intergrated gas contracts are going to explode the SP in 2014/15.
Something like 80% of domestic gas consumption is uncontracted post 2015 and prices are starting to match international ones due to the LNG exporting hubs coming online.
The SME market has been unloved and gouged throughly, im confident that ERM can make huge inroads there without trying too hard and that will pump the SP some more as well - not to mention the quick cash flow turn around on monthly billing to possibly boost the dividend again next year.
Nothing but rosy stories here.
Even if AGL beat them to the generators the AEMO energy trading system will get them a fair deal and we know their arbitrage margins on selling electricity are good.
I'm feeling pretty good about this stock.
EPW Price at posting:
$2.50 Sentiment: Buy Disclosure: Held
