It is a steal. The earnings/EBITDA is based on operational assets that are primarily built under the Renewables Obligation or the RO. They are developing and building more assets and they have landfill but little or no solar. So the income upon which a 9% yield is based is primarily stuff that is built. If the (moronic) Tories do stop onshore wind then they have some offshore and will presumably slash costs in the wind development business. So earnings may actually rise in the short term although landfill gas will over time decline and the wind is supposed to offset that. So my guess is that a sustainable 5-7% yield is achievable even if landfill gas declines more rapidly. Of course the chances of the (moronic) Tories winning an outright majority are no more than 50/50 and if they don't win then Infinis is really very very cheap as a new coalition would have to support onshore wind. If the (moronic) Tories do win then Infinis provides a decent annuity income stream which as they build out the planned onshore wind and perhaps some offshore will actually grow a bit.
Even today in D.T. I read that subsidies to solar farms are being reduced relative to onshore wind and given infi was priced at bottom of range at 260p and fossil fuels are shortly to be taxed to oblivion something is wrong here. We are either sitting on a steal at these levels or the money is talking and we're missing a major fly in the ointment-it's one or tother.
Indeed! Loving the V90 idea... closing my eyes and just imagining the scene! What a glorious solution! They would be catapulted with some velocity that's for sure, and then a steady descent at 9.81 m/s until they hit Terra Firma ('scuse the pun but could not resist). Good luck to you!
...is everything!! I genuinely think we are near the bottom. Just feels as though there is some interest at this level. That being said I don't think it'll go up much beyond say 220p until we get some project news and even then politics will dominate. But with a near 9% yield one is being paid to wait so to speak. I'd love to strap Ca moron, Osbourne and maybe Pickles to the blades of a V90 in a gale and see what happens.
Parkside, thanks for the further explanation re dividend. Like you , I know the members of the Infinis team. Agree they are a solid bunch, so do feel the risk is low in that regard. Its a simple matter of choosing when to buy.. Looking at the price since flotation, I wonder if we are nearing the bottom? That's always the question in any investment of course! It's in my view undervalued, and like you say pitched against Greencoat, it makes little sense. I do know there is heavy investment going on in wind right now and it would be likely to see an RNS to that end in the coming weeks. Timing timing timing.....!
No you will qualify for whatever they pay as they haven't gone ex of the payment and that wont happen until a few months after the results so again I would imagine maybe August or September or something like that. I know the Infinis team quite well and they are top notch so your capital is as safe with them as with anyone - caveated by Tory idiocy!! The irony is the price of Infinis versus Greencoat. Both are rather mispriced in my view! One is far too high, the other far too low. I'll let you decide which one is which!
Parkside - many thanks for your response. The "Tory Factor" is a risk, but I tend to agree with your earlier post regarding the low likelihood of them achieving a majority vote at the next election, so their capability to wreak havoc in the support for wind is much reduced I hope. Therefore I believe the dividend would go ahead unabated. I do remember reading in the prospectus something about pro rata. Will double check on that. What I cant find is the date by which you must hold shares to qualify (i.e the ex-dividend date). If that date is in the past, then I have missed the dividend boat (but still am very much planning to invest regardless). If that date is in the future, then all the better. I have great faith in Infinis and look forward to some positive announcements from them in the near future, and hopefully then the share price will find its level at a higher rate than now. Regards and thanks...
They have committed, in their prospectus, to pay out £55m as a dividend and that this should, thereafter, be a progressive policy. Now hands owns 60% odd of this thing and is sitting on quite a big "loss" against the float price so that dividend stream is quite valuable. I think it will be paid that unless, in the face of announcements from the (idiotic) Tories they want to preserve capital - although no reason to. So they have a mkt cap of £613m or to put it another way around 297m shares in issue. That equates therefore to around 18.5p of dividend per share or a yield of around 9%. They say it'll be paid in respect of the results to March 2014 so I would imagine that it will be paid sometime later this year say august or September (but the timing is a guess on my part). And not sure if it'll be the full 18.5p as the Company hasn't been listed for a full year so it might be a pro-rated dividend. It might be buried in the prospectus somewhere. But I do think these are good value but caveat emptor as always.
Hi All. I work in the wind industry and am considering making a long term investment in Infinis. I wondered if you one you kind people could explain the dividend situation please? From what date do you have to hold shares in order to qualify for the dividend and what is the proposed dividend payout date please? Thanks in advance for your help.
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