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.
I have just bought these. I think the landfill gas production is probably overegged but wind should be okay. They have a decent amount of wind to build and the chances of the Tories winning a majority are less than 50/50 the two other parties strongly supporting it. The £55m divi is comfortably covered by net cashflow and the shares yield almost 9%. So unless the (idiotic) Tories cut subsidies for operating assets (unthinkable) these shares are now fantastic value and obviously a great yield.
..fall has been a huge disappointment. I'm in for the divi like you good folk, but currently at a large loss on capital. Waiting for the first payment.
With regard to Tory onshore windfarm policy change, IMH if the Ruskies give one squeeze on the gas pipe, there will be pressure for the policy change to be reviewed in order to facilitate a boost in security of energy supply. A significant winter power outage would do the same thing. It would be interesting to know what the other UK parties' policies are on wind farms. I don't thinks the Americans are flogging us LPG big time yet as a substitute - and they have their own security to think of. GLA
One thing has changed in the last few weeks Bev88. Telegraph carried 2 stories suggesting Tories had gone right off onshore wind power related to issues of blight (or more cynically related to the concerns of potential Tory voters about blight). There was no suggestion that they would dishonour their legal obligations and I would suggest that it is doubtful to happen in the extreme. The bigger concern is how it may crimp prospects for this part of Infinis business to grow over the long term. Perhaps to bring a more positive note they could explore opportunities in Europe, offshore and grow the landfill gas business. If Scotland went independent I think the guarantees would continue but it would make Tory government for the remnant of the UK much more likely and thus adversely impact on future growth of the wind side in remnant UK though might actually add to opportunities in Scotland which would most likely be run by SNP or labour.
I don't have enough accounting expertise to judge whether stock is dirt cheap. I bought knowing these issues had just come up at around the 245 and 235 marks. Premature in some ways given the news but in the past I had missed the dip in the stock and did not want to do so this time. I like the fact that it has government backed income and thus is highly likely to be able to at least sustain a high yield even if it ends up having a fairly static or low growth rather than strong growth future.
Datafeed and UK data supplied by NBTrader and Digital Look.
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.