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Spark Energy - Oversold, Fundamentally Strong.


Spark Energy was oversold from fears of Hurricane Harvey damage

Revenue from sales losses will reduce moderately, but are rumored to be moderate. The market is missing the management objective of the company - a targeted M&A strategy.

Keith Maxwell, Founder, has recently purchased $186,000 in stock on the dip. He clearly sees the potential long term value.

The market has panicked, leaving SPKE at a fantastic value, with a good margin of safety, and high quality management who are strongly experienced in the deregulated Texas energy market. They are still profitable, and investing heavily in M&A activity which their management has a fantastic track record in. Volatility brings opportunity, and in a typically 'stable' utilities industry, SPKE's recent volatility has presented an excellent buy point. We are long SPKE and will continue to acquire shares if the market foolishly continues to misprice on fear.

The article above is explicitly the opinion of Peachtree Capital Management, LLC ("PCM"). There is no guarantee of accuracy stated within. This article is not investment advice. As with any investment, there is no guarantee of positive returns. Past results are not indicative of future performance. Please consult with a licensed broker before purchasing securities of any kind. 

Disclosure: I am/we are long SPKE.