The way I see it, if the market thinks (or if it has been published/announced) that a company/fund will see higher profits from the surge in power prices, then there will be more demand for the stock, driving up the price. Latecomers who only learn of this later (or think nobody knows this yet), wonāt benefit as much from those higher profits because they are now paying a premium for the stock.
Ok, thanks, that makes sense. I guess the trick is knowing whether you are a latecomer or not!?
The price to book value is 1.24 I think, so not undervalued as far as assets are concerned, but I wonder if that counts in future energy price rises? I guess we will see.
Sodās law Iāll up my holding and cold-fusion will come online!
I watched a 5 month old YouTube video (the extent of my research!) which said they have locked in75% of energy prices to 2030 - therefore wonāt benefit as much from the current height prices.
Bought this today as a hedge. I own Ā£BP Ā£SHEL and $XOM and wanted something a bit more green as a hedge. It was a mix up between this and Ā£UKW but this won as they also do solar power and are spread out across part of Europe.
My guess is there isnāt anyone willing to sell at a price that Freetrade can accept or access. Give it some time and itāll probably come back - maybe everyoneās gone to lunch!
There are a bunch of companies that have been benefiting from government subsidises and making hay while the sun shines (ok, bad joke) with the massive increases in wholesale energy prices. Many countries including the U.K. are looking at legislation to cap prices. Need to look at specifics as this does not apply to all generators.
Itās pretty interesting seeing both Trig and UKW struggling a bit recently. I no longer hold shares in either, but I thought they would outperform the broader market, shows you what I know!
This is exactly what you would expect when interest rates start to go up, bond yields change and caps are in the offing. On top of that look at the horrendous management take. There are better places to put your money.
Weāve been discussing this on the other trust threads. Someone with more time than me would look at all the renewable trustsā price fixes for the next year forecasts beyond 2025, revenue mix, current cost of capital (and sensitivities of it) and the discount to NAV to find a relative bargain thatās been thrown out with the bath water right now.
Thatās far too many residency tick boxes for me though
This is why I really donāt like government subsidies and market manipulation. Letās hope companies didnāt start building their future on the expectation of government intervention