Absolutely no chance because if it hit that price, the entire company would be liquidated and people would invest the proceeds in anything, even government bonds, that would earn a higher yield.
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Really?
Why?
Considered the lowest risk (UKW). Great dividend cover.
20% discount
Near 8% dividend gilts 4.25%?
No suggestions interest rate will rise.
May fall slower than expected.
Doesn’t add up to me.
A Bog standard problem of supply and demand.
Supply is falling (buy backs). Now we need demand to rise.
The market is sentiment driven in the short term or even medium term.
But reality will arrive and I suspect sooner rather than later.
In the meantime…buy buy buy BYE!!
Hi all considering the spread on this stock it looks like a good investment to me. I just can’t get my head around why shares in renewables are doing so badly at the moment.
Time to build a position.
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Potential reason for stubborn rates, the projections in this video don’t make great reading.
Cost of capital appears to higher for alot longer than thought.
Infrastructure was popular when rates where near zero, my guess is it will take quite some time for these companies to get up to speed with the new normal and then investor sentiment may start to improve?
Who knows really, these investments appear great value, but only if the companies can work with higher rates.
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There’s also concerns around zonal pricing reform. UKW is by far the most exposed trust to this with 40% of its already large portfolio in what are likely to be the cheapest zones (ie Scotland). Industry complains about increases in cost of capital but reading between the lines they are opposed because it will limit upside on power prices, especially merchant revenue (this is an interesting thread with the founder of Greencoat). I think this or a similar reform is highly likely to occur + having the smallest discount to NAV of the group I would stay away from UKW for the time being.
For transparency: I have owned a little since 2018, even added recently but would probably trim on any recovery. Plenty of other opportunities.
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Yes that could be the case for cheaper prices but that would promote growth and then demand!! Also a lot of the energy will still be exported to england… its now about getting battery capacity up to store that load
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Absolutely agree. Regional pricing is inevitable and would be good for all long-term.
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