Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
To deliver income and capital returns to shareholders through investment in Big Box assets in the UK.
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This is crazy! Does the market expect the economy to stop! A strong balance sheet, good short term finance costs, excellent diversified portfolio.
Maybe the market thinks we are going bust!
A bit like my PF. Lol
Seriously, way over killed in my opinion.
Convince me otherwise!
Seems I dived in a little early with this one.
Absolutely staggered by the fall here over the last couple of days, thought we had hit the bottom but some people are clearly panicking. The news yesterday that the country is probably in recession is probably driving it lower but surely that has already been priced in. 140p to be the pivot?
I hope so, but it was always going to be a year or more hold for the good dividend payments and hopefully a nice share price recovery too. The mini budget today is likely to determine where this heads in the short term though.
Looking at todays trading pattern it would suggest the bottom has been reached barring shocks. Still some hefty sales though. Why would you at this stage?
Just wanted to say thank you for the insight AdamAnt. I was going to buy earlier this week and your note around the 145 mark made me hold off until today. I'm now in so will be frequenting this board a little more often.
Well Im glad I didnt have a dip on Tuesday. I figured we are still in panic mode. I reckon most of the problem today is the useless BoE under the even more useless Andrew Bailey. A socialist in charge of the BoE - asking for trouble. Lest go .5% say I. No lets go .75% say I. No .25% says another. Nowt like an agreed policy in a time of crisis. Lets go down the middle then neither one nor t'other. Enough to damage the REITS etc and not enough to suit the finacial sector. Add to that his almost triumphalist cry of 'Britains nearly in a recession you know' like a nasty school kid who has just discovered a juicy bit of gossip about a classmate. Like everything else in the country its a shambles.
Looks like you were right though Ant. We must be close to the bottom now - maybe 145 as you said. Its 'probably' a good one to buy now and hold for 12 mnths to 2 yrs or so. As I say life will go on and its not like no one wants what they have on offer
I originally bought at 140, and held all the way up to the top, and have then been adding tranches all the way down to present levels. So a nice profit has turned into a nasty loss. Bought some more today at 157. I agree it could go lower (there is a 61.8% Fib retracement level at 145) but the share seems very good medium-term value, so am prepared to ride out any further short-term weakness.
This the reason for today's drop:
“Germany’s producer price index for August soared by 45.8% year-on-year, sharply outpacing forecasts for 37.1%. Month-on-month the figure rose by 7.9%, almost five times the forecast for 1.6%, signalling red hot producer inflation in the eurozone’s largest economy, well above analysts’ expectations. Japan’s inflation rate also accelerated to 3% in August, the highest reading since September 2014, driven by soaring food and fuel costs.”
I was hoping we were starting to see inflation level off but it doesn't look that way. Still, I agree, this is oversold.
There's some reasons. They have a pipeline of new builds, most already pre-let, but not 100%.
Costs for building will have gone up, as it's very energy intensive (eg concrete) and any un-let might need to adjust rental down. Existing stock that's let out, well medium term one might expect rental yields to fall on renegotiation, also any debt being rolled over becomes more expensive.
All of these things on the margin make this less profitable and likely to cut dividend stream.
BUT then trend in online retail and demand for these sort of spaces is still going up, and people are forecasting interest rates to fall again in 2024 and the share price has sold off some 35-40% from the levels earlier this year. For much of 2018-20 we were around the £1.50 level, so I have started to accumulate today and medium term anything below £1.80 is good value for me, but given the overall weakness of the market I can see a possibility of 1.30-1.40 at some point so keeping some powder dry to use at more opportunistic levels.
Amazing. Everytime I think this must be about the base it surprises me and falls some more. I like to muse about the psychology of investors. I note there are many sales at the moment and one was for around 23,000. I appreciate that its probably going to be a while until BBOX approaches anything like its fairly recent glory, that there are probably better returns to be had elsewhere currently, but it must be a while since anyone bought at much below its current price so I would imagine those selling today are doing so at a fairly hefty loss and are a bit after the horse bolted. Or maybe there are a few left yet to bolt. The company itself hasnt done anything wrong. Its an often cited altruism that those that allow themselves to be panicked into selling on a bad day probably dont really know why they bought in the first place and more often than not are the losers and that those who hold their nerve and buy when the price is unreasonably low will usually see good return. My view for what its worth is that yes energy is high but people will adapt. Life wont stop. i was just looking to rent a holiday cottage for a week. Most are booked solid well into next year. Went in to a pub for a drink yesterday. We had to sit outside because every single table inside was reserved for meals. The markets are in panic mode at the moment. We all know how fickle they are. The other thing is the war isnt going well for Putin. He had better stay away from windows and buy a longer table. But if the war ends - and its beginning to look a bit of a fools errand then the market will react accordingly and another altruism is that there arent many great days on the market so you dont want to miss em. Now then should I buy some more?? Not at the moment - there is too much panic and I havent got the balls :-)
Mine safely tucked away as well on the 25th in t'ut SIPP. Yours must be there somewhere.
Got mine and I'm with HL.
Anyone been paid the Dividends from last month, I am using Hargreaves and Lansdown, still waiting
As a long-term investor, I will be taking advantage of this big fall. Most tenants are tied into long-term deals, that have only upwards rent increases, so no reason on earth for this sudden drop.
Two things - Recession to hit online retailing, and higher bond yields cuts NAV values though higher discount rate on rental income in a DCF. Whilst there is a bit of truth in both, the fall here is absolutely ridiculous for a REIT holding some of the most prime logistic space in the UK. Massive, massive buy IMHO! I bought yesterday and today, and I'll also buy tomorrow if it falls again!
BBOX is now trading at a 29% discount to the NAV. Industry peer Segro (SGRO) is now at a simlar discount. Does this mean that investors are expecting commercial property prices to fall by this amount?
Or is that too simplistic? I appreciate that there are other pressures on the business e.g. Higher interest rate, pressure on tenants which could drive down rent and increase voids.
Thoughts welcome.
I am sure these brokers do their ratings with a dart or just pick a number depending on what is in the days papers. Looks like Barclays just worked out last week that there is a cost of living squeeze and are now using Baileys inflation predictions.
Shs bt virtually equals sd......why 2%+ going south?
Very helpful remark
"debt benefiting from either fixed or capped interest rates with an average cost of debt of 2.52%" RNS 4th Aug
yes id picked that up - eventually! but hadnt made the connection. Cheers. Just shows though how touchy the mkt is at the moment. The knock ons are so tenuous
Hi Nala, the drop coincided with the release of the US job/payroll data. The numbers of people on the payroll were higher than forecast meaning that the labour market will be tight and inflation even higher. The Fed will have to increase interest rates faster and further to counter this.
Rising interest rates are not good for a company like BBOX which has £1.4billion of debt. More money being spent on interest repayments means less profits and lower dividends. The same applies for their customers/tenants which could put pressure on rents and cause vacancies.
What caused that drop today then ?
Nick
I expect it to. For all the doom and gloom ( a lot of it generated gleefully by the MSM) life goes on and people adjust.