This doesn't make sense, Beaufort have stated Infinis is a strong buy with a target of £3.00. The Company profits are good with a 7% dividend. Although Gov has reduced support for onshore wind in 2015 but this shouldn't massively affect Infinis ( read Beaforts review) so why is this falling now ??
If you want dividends and a juicy yield. This is one of the few stocks around to give just that. The div yield will also underpin the share price in the short term (sticking my neck out here). Long term players ignore the shorters on this board.....
I would strongly advice you sell if you cant afford to risk your money at large. The indications are getting stonger that the share price will likely plummet even below 200p before the year runs out.......definitely not worth it
Jadee, I think we were right to sell, I lost 7p per share. It did bounce back a bit yesterday but it finished at 2.52, and currently is continuing that downward trend at 2.45. I wasn't expecting this to be another RMG, I was happy to take the dividends but something about this company doesn't feel right to me, combine that with the very negative news about the future on shore wind and I feel it's better staying away from Infinis. I like the renewables sector, but will look for a company I'm more comfortable with. This is a Strong Sell for me. DYOR. For those holding/buying good luck I wish you well.
Our view: While yesterday's news caused a minor downward 'kneejerk' reaction to the share price, our stance and price target on Infinis remains unchanged. Beaufort continues to recommend the shares as a 'BUY' for income investors (remember, we forecast a 2014 yield of 7.2% based on current share price), with a price target of 300p/share. Although the exact timing was uncertain, yesterday's news simply detailed the fact that subsidy levels were being examined through a continuing consultation and that a cut will likely be proposed by Decc in 2015. These will possibly become effective for fiscal 2016/17. Realistically this could mean the support level is reduced from £95/MWh to, say, £90/MWh. Infinis's business model is highly robust and such proposals have already been more than anticipated in its long-term planning. Infinis has a substantial onshore wind project pipeline of c.600MW at various stages of development. Of this, it targets the addition of 130-150MW of onshore wind capacity over the next three financial years, with major sites already fully permissioned in Scotland. In expectation of the latter being 'grandfathered' on existing legislation, visibility remains excellent. Indeed, Beaufort's model for Infinis suggests the Group will be throwing off significant amounts of cash by 2017, to the extent that it could even have the option of distributing special dividend payments in addition to the generous annual payment. Other options more rigorously paying down Group debt, acquisitions or, perhaps, even participating in one of the government-favoured offshore wind projects. The scale of offshore wind projects tend to be so large that they are completed by partnerships or in consortiums. This would be something of a change for Infinis which, in the past, has preferred to wholly own-operate its own generation. While there are no such plans presently afoot, the Group certainly will have the scale to consider such participation by 2018.
Datafeed and UK data supplied by NETbuilder and Interactive Data.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.