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Subscribed a modest amount through a nominee. Strangely an amount less than I offered has disappeared. Does this mean an oversubscription? How can I find out what is going on? I am new to subscribing.
Equally, I'm now slightly more uncertain than a week prior. Why? As the jitters of this past few trading sessions has shown that there is increasing uncertainty in the broader market. There's potential that some investors / IIs might have decided to apply for less than they may have a week or 2 earlier.
We'll see soon enough. I'm hoping for an oversubscribed application myself in order to see return to 140p+
Sanibel, its the placement price that has dragged this down. I did wonder if the market might actually drop it lower than the placing but its holding firmer now. You could have guaranteed getting your holding at the slightly higher price, no fears of scaling back but its over half the quarterly dividend effectively you will be missing if you do. Still you cant sell the placing yet for a couple of weeks until its in your account which is also a factor to consider. I suppose it depends on how much it was fully subscribed, as to any scaling back and or further placings being needed.
I suspect that if more funds are still needed it will act as a drag on the share price going forward until it is completed but you might be right about the effort. At least it was open to all investors not just the big boys. I don't like being excluded!
Placement price seems to be a waste of time. You can already buy within about just 1p of that straight away.
I dont think its worth the effort
Excellent thank you very much very thorough
They have their management charge, for running the windmills which is just over 1%. You can see the detail in the annual report on their website.
Hence why its good for them to keep issuing new shares as the bigger the company gets the more in that fee they can collect. In theory though, its invisible to you as a shareholder as you dont pay it direct its just skimmed off the whole so the SP doesnt rise as fast as it could with that extra 1% compounding. I suppose you could think of it like having to pay the cleaner, it costs something but the company pays it out of earnings not you. The cleaners wage though reduces the overall profit to pay out dividends
As a shareholder you have the share price, up or down to consider and any dividends collected along the way.
The share price is currently lower at the moment as they are doing a placement for 131p so the SP has dipped close to this level. Otherwise we would all be selling higher to buy the cheaper ones. You wont be able to get any at 131p though as you need to be a shareholder already and the cut off for the decision to opt to buy is 20 Sep.
Still, this could get scaled back if too many want the new shares but you can guarantee getting the amount you want at current market price of 133p
I have decided to take part in the offer, so now need to wait until Oct to see how many new shares I actually get.
Morning all are there any sig annual charges assocaited with this fund from peoples experience. I'm fairly new to the shares game and can't seem to find the annualised costs (if there are any) for investing in the fund.
and a large war-chest to purchase cheap or distressed assets as the economic downturn bites into next year
I wouldn't expect it to drop below offer price @Gerry.
Thing is, 3rd interim is generally in November. So a good chance of getting some SP growth between 1st October and then. As you say though, this is more of a dividend play than a growth play.
Note that whilst the RNS stated that they want to issue up to 750 million shares over the 12 month period (which sounds bad) it looks like they're wanting to get it all done in a single tranch. IF they can pull that off, then much more chance in seeing this return to 140+ by end of the year
Just wondering if this will drop below the offer price.
Its not unknown and only needs Mr Market to have a bit of a fit and I think we will be there
In answer to the OP, yes to individuals, assuming your broker will take part.
I have to decide this week which way to go. I'm tempted to ask for a block hoping the SP swings back to previous levels and sell to retain cash for next time but keep the additional "free shares" still if everyone does that it won't work. I don't like buying for a quick sale generally and much prefer to increase my dividend income. I'll have to check to see if this income falls in a month I'm needing to increase overall, that might sway me. Off putting is the above NAV price, chance of only a percentage increment and the fact the SP fell quite a bit recently.
Still I have a couple of divis coming in this week and this is generally a good payer with a growing dividend so might make more in dividend returns than a short term punt on the SP.
That sounds more like my style although growing divis are great until there not growing anymore, or reduced or cut completely.
How to find that balance..... Without falling off
My shares held through HL. I have just received offer to subscribe and will be topping up. Just hope that requested shares are not reduced because of over subscription.
@Greenfish: Unfortunately I think almost all of the plays like UKW are vulnerable to share issues. Given that they return such significant percentage of their earnings to investors, this is how they 'raise' capital in order to invest in new assets... ie. all part of the business model. Typically though, the issue wouldn't be so large a percentage of their market cap, or via multiple raisings. That'll likely put a lid on near term rises - yes.
Equally, as suggested below, it depends upon strategy. If it is possible to get in at or close to NAV, then one should be good. Second best would be to get in after announcement of a raise. You'll observe that SP tends to drop towards the stated issue price. Buying in there or thereabouts should be relatively close to the floor (IMO). e.g. I bought a few grand of TRIG after their last raise. Wasn't to invest, was just a quick trade for easy money. Situation this time with UKW is slightly different
Anyway, all wisdom to you in what you choose to do. Personally, I've got all I need already, so not making any changes
are you not worried that they will just do it again and again and again thgey don't really seem to be intrsed in what happens to share holders i don't see that changing
To buy or not to buy? That really depends upon ones own strategy and viewpoint
I'm fortunate to have picked up my current holding in Mar-Apr this year at prices between 101-120p (had bought in 2013, but sold out a long time back). Personally, I'm wanting a core stock holding that generates a reliable average return of 5% per annum. Potential for capital upside is great, but I want to view that as a bonus, not expected. UKW fits this bill for me and so I hold.
My view point:
1) ESGs are increasingly popular with younger generation of investors & even the big IIs are getting in them because returns outperform wider index average.
2) Renewables will be one of the industries to gain from Covid. They gain from increased emphasis on the grid, they gain from stimulus, and they in turn gain from increased media attention. More power / money & attention are all good for sector SP.
3) Given wider economic uncertainty, lower interest rates for longer etc, I think high yields such as UKWs will gain increasing appeal to wider audience, so expect performance to be fairly robust.
4) Given above points, even if there be another market collapse, I don't expect UKW to dip as much as before. It's demonstrated that it doesn't go off-line, but is rather quite resilient. There may be sellers covering margin elsewhere (like what happens with gold and precious metals)...if anything, I'd expect any dip to be short and then fairly promptly return to above NAV levels.
5) I'm not a fan of multiple prolonged raises. Whilst capital growth is not my target for UKW, I do expect SP to cap and swing in the 130-140 range. Potentially this may to appeal to traders
6) Raises are generally accretive to NAV. So I don't have this concern as some others here have raised. However, investment in new fields typically takes time to complete to production. Covid has demonstrated the risk is to supply chain delays during construction (not so much on operating fields). TRIG suffered a significant NAV drop because of this reason, so I'm not keen on UKW opening themselves up to too much risk here should they seek to undertake some significant new expansion
7) More macro factor, but prices have dropped. Can't remember how much is hedged, but overall energy pricing across europe has dropped and is forecasted to stay lower. This is not a major blow, but should we encounter construction delays on new projects & lower pricing together, that's more potential to become damaging
Anyway, those are my thoughts.
Re: forthcoming market drop. Self-fulfilling prophecy. Enough people fear one, it will happen. Wisdom to all during these uncertain times
The shares are currently trading at a premium to NAV.
The share offer is at a premium to N AV and will INCREASE the NAV per share.
It is good for existing shareholders.
but it is not just dilution - debt reduces and the remainder will be invested in other ventures. This strengthens the balance sheet and creates greater operational income flows.
It is another form of Leverage really. I can sympathise with current investors, but for me it is looking much closer to the point of getting in
I can't see how some people view this offer process over the coming year as a 'good' thing.
Yes, it may reduce the burden of debt, but from an Investor perspective they are looking to create 750M new shares - representing over 30% of the current shares issued.
In anybody's book that is a 3)% dilution on the SP giving a potential net SP of around £0.91. I'm not sure why others aren't seeing this as anything other than an utter collapse.
Why would anyone even consider buying at £1.31 - its not actually a discount on anything; as the SP will drop due to the dilution involved.
Or am I completely misreading the RNS?????
Either way I've sold today and will wait for the company to finalise the last New Issue as well as any impending downwards market spike forthcoming.
Sadly disappointed in the BOD on this one.
I have the impression this is the model for UKW as so much of the profit is returned as dividend. Fund raise for cash to buy, develop the asset. It almost feels like an REIT type
Still watching anyway - there will almost certainly be another big blip as the world markets cough post US elections and dire results + rising unemployment and repossessions start to happen ...
Nothing for loyal investors who have been here from Day 1. This is what happens when people hold shares, vote, and don't understand what they are voting for. Share price drops, yes we can buy at the discounted price that in now the market price, but, this is going on for a year. Dividend is good if you bought at 100p, but not so good even at 135p as of now.
have been looking at UKW with some other Renewables for almost 3 years as part of some long term portfolio planning and will be buying a decent chunk at some point in the next few months. I rather agree there is more economic shock to come and just as the price spiked down from 143 to 101 in March, I rather expect another spike - great buy in time.
So to share the basic analysis figures. I essentially made a fantasy investment on 2nd Oct 2017 and as of 5th Aug (when I last updated), re-investing dividends my annualised return would have been 12.6%. (On todays price of 135 I get 9.8%)
When I compare to the other 3 renewable's I track the same I get 5.2% for FSFL, 4.1% for NESF, 13.7% fro TRIG. All above inflation and fairly solid with an aggregate of 9.1%.
A solid long term investment that will generate a really good long term return
As for a spike down, well if that had occurred at my fantasy start time, then I would have made an annualised return of 27.7% and almost 24% overall ..... I am gathering cash and waiting for the blip to buy in, then hold, re-invest and leave alone for at least 5 years.
I have not had a detailed review of the RNS's, but on first glance it looks good for the long term, close down debt, generate cash to buy and grow.
If it's anything like the previous issues, brokers will be offering them (Halifax are certainly one). Having bought the original offer in 2013, I sold out about a month ago at £1.46 hoping to buy back cheaper. This might be a decent opportunity to get back in, although I suspect they'll be less than 90p when the market next ****s the bed.
Excellent long-term INFLATION-LINKED opportunity here.
If there is anybody out there, as this chat is almost deserted can anybody tell me whether the shares are offered to all existing holders or just to a select few institutions. The long legalise rns isn't that clear to me. Thank you
You are spot on about battery storage once they have cracked the problem with storage ie weight
And size, renewables will become massive. I have just the one investment “here”. the rest are in bio Pharma . Also infrastructure funds and passive funds . Stay safe. :-)
Welcome back Seaking. Good job on the other trade. The past few months have been pretty pleasant across the portfolio :)
Agreed about growing importance of renewables. Think that this is a sector which is going to benefit from covid - as it's basically provided a test environment for what the future will be like and funding seems to benefit from stimulus. On that note, my observation has been that there is significant opportunity in the battery storage sphere. Not only is battery storage necessary for improving efficiency of standard renewables (i.e. utilising wasted energy supply, something like 6%), balancing the grid whilst wind & solar power levels are low (i.e. replace role of coal & gas), but it'll also influence how EVs all work (i.e. gradual replacement of petrol pumps with electric charging stations). Personally, I've taken positions in a couple of different plays there which am expectant on doing well, but think there are many opportunities, ranging from mining of key resources, infrastructure & installations, battery manufacturers, as well as site operators.
Worth taking a look into. But yeh, renewables in general is a great place to be in