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Can't understand why this trades at such a low p/e and high yield given the visibility on earnings and div cover, not to mention the potential for growth, as today's update demonstrates. More than happy to chuck cash in here for the divi alone but I would expect it to trade materially higher at some point in the next 12 months.
The signposted Q4 update on monetising the undervalued renewable assets in Brazil might give a SP boost a bit sooner.
Big UT trade for here today. Not helped by the 45k sell. Knocked the wind out of the rise. It will soon clear. I have set another buy order.
Trek
Another +£300k UT trade. This one took us up 3.6p at the close!
Could be an opportunity to sell a few and grab them back cheaper at the opening bell on Monday if you like to trade the margins.
Usual caveats
Trek
I've found another 2 buys worth of cash, but undiced whether to add another £12.5k of this or add the same value of BHP. I already hold RIO, but I like to have at least 2 stocks in each area. But I do really like the look of GLO. Perhaps I just wait and see what happens over the next couple of weeks.
Up 5.35p atm
Been lots of huge UT’s this week.
I just wonder if the market has sniffed out an inflation beating yield as it takes risk off highly leveraged, interest rate vulnerable tech?
Remember GLO’s divi goes up 10% yoy. It’s in its ‘constitution’! Lol!
Back to 200’s soon imo as it never broke through downside resistance at 180!
Usual caveats
Trek
Trek, morning.
It's still very much under the radar, even though we have been spreading the word here and there. Wouldn't it be lovely to build up a bear market-resistant, high yielding portfolio to live off? That's my plan for half of my SIPP that I live off now. The divis are starting to roll in. PAF, CEY, POLY in the gold mining sector for starters. Also DLG in insurance. And, of course, GLO for which I have you to thank. ATB.
Hi O&W,
Thanks
Yes, I am on the same page as you. Made some money in high risk and will be cashing out as each stock reaches my target.
For yield a couple you may not have found. The likes of LGEN, AV etc are obvious but look at…
PAY, quarterly dividend with a good economic upside. Don’t buy yet. It will likely get knocked back if Omicron kicks off but it recovers quickly. It’s on my watchlist to buy sub 600. Then 580 and so on if it drops. It’s technology is coming on stream and management have guided results as on track recently. There was some regulatory issues but seems sorted now.
Also MNG silly yield 9.8%, and pe less than 5! Soo cheap. Mostly imo coz it’s still newly listed and there are lots of holdings RNS’s as insti’s find a balance. Look for sub 190 again..
Also on AIM if the market dips WINK (retail land renter)and PGH (corporate services, great CEO) both quarterly payers. look at Chart for PGH. See how it’s steadily recovered. Maybe another pull back soon if so they could be worth adding just a few.
However, all said. I seriously have researched most of the divi plays and there are none better than GLO atm.
It’s my only income stock for now as I sold the rest on the last peak to run a few higher risk plays a bit harder.
Good luck with your investments
Merry Christmas
Trek
That MNG div yield is outrageous! And well covered, too. Investors there must be expecting an impending bear market of quite some magnitude, to price up a quality, value style fund manager like that, who has been around for decades. What am I missing?
Spooky you mention MNG. I bought 6305 shares last week(13th). Unfortunately I paid £1.9433 including taxes etc., so higher than you suggested. As I think I've mentioned before I already hold LGEN and AV. I hold RIO also for the dividend, and though they may suffer a little short term I think like GLO, they are a solid long term hold.
I think the key with these high income equity plays is to construct a well diversified mini-basket of them, by industry sector, and then to populate your mini portfolio with what you consider to be those with the best chances of safeguarding the dividend in harsher times. Of course, having the ability to grow the dividend at or above inflation is an added appeal of the best. That's where GLO shines brightly. I own 3 gold miners In that category, paf, cey and poly.
Hi O&W,
MNG made a H12021 after tax loss of £248m compared to a profit of £826m in H12020. Personally I think they will turn a corner now having stemmed client outflows. They are also on track with transformation and have some new eco funds that, as you know, are all the rave with retail atm.
However, my concern for all insurers and banks is exposure to China. The Chinese economy imo is sick. We just aren’t being told how sick. Following Evergrande’s failure to meet debt repayments and now 12 other property companies heading towards bankruptcy with state cover up we don’t know how sick the animal is.
Whilst insurers and banks have much better solvency 2 cover and have weathered stress tests that doesn’t mean they could sustain another shock that is like 4 x the size of Lehman...
That would soak up a lot of the buffers!
The thing is they just can’t stop themselves investing in junk if the returns look attractive. The bonuses and the income are just too tempting. Even without direct exposure the world is at risk from a Chinese recession. It’s all interconnected.
Give this a listen... it’s a recent vid which touches on the contagion risk. Real companies that have now defaulted can’t pay debts to local govts. They are fire selling assets to cover losses and make payments. The total debts outstanding are heading towards a trillion USD now!
China is embarking on a huge QE program to get money into the system it’s all very precarious.
https://youtu.be/ItN37fjVBjA
There are plenty of similar vids on YouTube.
Usual caveats
Trek
As intimated in my earlier post look at the insurers down today.
Meanwhile GLO closes above 190 thanks to another UT trade at close.
And we have a safer, higher divi than most plus it’s quarterly!
Usual caveats
Trek