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I have contacted the Company since I believe the stated 10% increase in divi is incorrect. The Company pays the divi in Sterling, and has been reduced because of the strength of the $US. If it paid divi in $US it would be correct.. I have requested that the Company give S/H the choice of currency payments.
Well imo the market has had this one wrong. It should be +£2.40 based on ebitda growth, resilience, 10% divi growth and share buyback.
“Outlook
On the basis of our contracted and regulated revenues, and approximately 10 months of earnings from the 'Western Generation' acquisition, we expect 2021 Adjusted EBITDA to be between $770 - 800 million[8]. We are maintaining our 10% annual dividend growth target.”
Let the suites play their games. PI’s looking for a steady income should be loading up here!
Usual caveats
Trek
out this Friday, with 4thQ divi.
Profits will take a something of a hit because of the weakness of the Brasilian real against $US. The pound is also stronger against the dollar and that impacts the divi which is paid in £. Interested to see if there is anything on the likely EBITDA contribution of the recently purchased asset. It is concerning sp is <2£. If there is nothing untoward is results, should get decent rebound.
I wish all companies were like this with their dates. Very clear and you know the year ahead. Newly invested in this company. Good luck to all.
Looks like no buy backs sine Feb 21. By my quick calculations there is still room for approx 300K shares in the facility. I don't read anything into this lack of activity.
The recent purchase included an asset of Berger regeneration in Texas. I believe the asset is a gas fired plant, but have no info' on if it was affected by the big freeze. In any case, revenue was lost owing to grid shutdown. I believe the main problem was freezing of plant. This should not have any capital cost implications. The revenue loss will be small. The final 'signing off' on the contract was done in the midst of the big freeze, so I would very much hope there are no long term implications, except ensuring it will not happen again. Looking forward to rns of 4th Q divi, which last year year was posted on 17 March. The divi. will be adversely affected by the 'strong' Pound. I will make enquiries if Co can pay divi in US$ to S/H who request.
Anyone any insights into how the Texas freeze might effect the acquisition if at all. Not sure if the freeze is good or bad. looks like a mess in Texas...people burning furniture to keep warm....
Hi TM
yes, it has gone under the radar. A divi with a 10% yoy BOD approved growth rate is fantastic. With a 'green' administration entering The White House on Jan 20, it will provide more opportunities for GLO, and I hope the share buyback is put on hold to build a war chest. The weakening USD will hurt the divi somewhat, and it may continue to slide with the record debt idiot Trump has given to the USA economy, especially as one of his 2016 pre-election 'promises' was to reduce the 'Obama' debt.
I would disagree on the Treasury shares. I would much prefer that share 'buybacks' are cancelled. Even if TS are sold to Institutes, it adds dilution. Institutes would normally look at a divi. paying at least 5%, and on this metric, next year, when the divi should average 13.23p ( exch. rate 1.35 USD=£), gives a sp for GLO of £2.64.
Hope some PI’s took advantage of the recent dip. You gotta lol we don’t serve the UK. NI is the closest, yet the SP got hammered until someone realised!
It’s one of the many reasons why GLO is so attractive. Low risk overseas earnings. It makes it a ‘Brexit proof’ , fx hedge, income play with capital growth. The market really is asleep on this one. Hence the buy backs!
The clever bit is parking the shares in treasury. They then pay themselves a divi + if you get an insti’ that wants a load you can sell them from the treasury at a higher price than the
I will be putting the lion share of next years ISA in GLO.
Trek
Very quiet board which is smashing.
Quick calculations indicate about £8.5M capacity still available until the £30M limit. Roughly 21 days trading if the buy backs continue at current pace of approx 200K shares per day....
Hopefully provides decent support though to the New Year.
It is nice to get some regular money quarterly and seems stable though by all accounts the share price should be higher than this.
Nope haven’t forgotten, just bought first tranche after x divi date. I only stumbled on this co a few days ago. Wow absolutely blown away by the income prospects.
Going to flip some other divi payers into this one as there are very few reliable quarterly payers that are increasing divi yoy out there.
Trek
Yes a good steady dividend set to rise 10% a yes just wish I bought more when it was around 8 or 9% earlier in the year.
Also, the BOD have committed for a 10% annual increase in Divi. With almost boringly known income, it is difficult to see how the company can fail. What will be interesting, when a pro-renewable energy president is elected in USA on 3 Nov, is how the company advances it's portfolio in USA. Could be very exciting.
Remember that GLO pays an annual dividend of about 6%. This I did not realise until after I bought in. I was delighted. Not just a good prospect price wise.
Seems like quite a good write up on simply wall Street. Finally moving up again, hopefully holding above £2 next week and then onwards and upwards.
yep always like when a good company has a pull back for no real reason.
However I'm holding off any buys right now (could change if I see a big opportunity) as I expect things to get very volatile over the next few months with US election and Brexit (again!).
With FTSE 100&250 lagging so much compared to other markets I feel I can afford to miss out on 5-10% rises and still get in at good price.
I certainly see Contour as a strong long term stock which should (as a business) be safe from most things the world throws at it but if I can get it cheaper that's even better :)
but am happy to pick up more as my monthly investment in September. I don't know what is behind is but it only makes buying cheaper and the yiled more attractive. I will be happy if it goes off radar while I build a position.
The graphs on this site show a real roller coaster ride. However I have decided that the best highs, on November 4th last year and July 16th this year, suggest that my average of 195p is not too bad. Reading the website is more interesting than most of my other companies. I get an encouraging vibe. I begin to hope that the opening price of nearly 250p could be achieved again with the right determination and vigour. After all there is no gain without risk. Thanks for your comments Knife and Oracle.
One thing I've learnt is I can't control the stock price.
However I can control which companies I buy stocks in.
If you feel the industry has a future, you like the financials of the organisation, and the share price seems reasonable, you should be on to a winner.
You also have to try and take emotion out which is very hard to do especially when prices are going down.
I think you'll be ok with Contour but you need to make your own decisions don't be led by any tips on any board or website. What do they say? copying one person is plagiarism, copying many is research?
You want to research the stock before you buy and from time to time during your hold.
Courtier good afternoon. If this loses half its value in three months to become 102p I as a holder will be delighted. I will sell every share in my PF to put in here. Yielding over 12% at that price with a safe-ish divi and an established player in niche markets. It won't stay at that level for long. In the meantime if you reinvest your divis even if you haven't got spare cash you will pick up some really cheap shares which pay further dividends. This is one of the most solids shares around.
Mostly my worries come from the Graphs for GLO. The company does seem able to lose half its value in three months: Jan to Apr this year. I bought partly because I was looking for growth in the power sector and this did seem possible here. However I am think that the price I paid was a good entry point. I also like the international ambitions of GLO. They obviously want to build a great company. When I looked at the standard supply companies I felt that GLO stood out from the usual biggies as an opportunity.
also like the mention that they are doing company led testing so that should limit the chance of any mass outbreak and therefore large effect to business.
Courtier what are you worried about specifically?
Or is it just that you don't see anything bad and worry that you are missing something?
Fine update and the market is wising up to GLO. Really good yield and am happy to pick up more.
For good information go to:
https://www.lse.co.uk/rns/GLO/interim-results-announcement-skbsp1mybnkca4v.html
More excellent news and a dividend on 25th September of 3.1077p per share. The trouble is that I am a small private investor and am genuinely worried that it is all too good to be true.