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Have been researching here over the last few days and seriously considering adding further today. I am aware of the disposal of the Brazilian assets and the global foot print GLO have with a wide range of energy producing assets. revenue may be impacted this year but margin is apparently increasing as will dividend yield with a policy or claim to increase 10% YoY. That would make this years at this price over 8% as I believe Trek said in a previous post.
Is this a defensive stock ? a little boring perhaps ? (thats what I like) Is it under valued to NAV ?
What am I missing ? where are the or what are the negatives ?
It’s a boring divi stock. Even the management are trying desperately to change its perception and attribute more realistic SP value. Look at the majority holder and the last statements it’s all there.
As I have said before we trade on a NAV discount and a healthy forward yield akin to an alternative energy ETF. There you pay annual fees for the same sort of nav discounts for someone else to run the pf.
Here you have assets in Europe and America’s, 20 countries! So you get diversity there and also none in UK which helps, especially if the govt change the terms for a windfall tax from North Sea to all uK energy!
You also benefit from fx tailwinds and a divi at 1.9x cover on my last calcs. Also 10% yoy increase makes it inflation ‘proof’.
Only a small amount of the pf is coal. Most is renewables. Even got us a ESG B rating which puts us on the insti radar but coz the stock is pretty illiquid you can’t really by in mass.
That’s why so many small trades as MM’s try to generate liquidity and manage the price.
Oh and the company IS growing, its debts are per assets so that protects the wider pf. It also has a pot of cash for aquisitions or a special divi and costs are passed on to consumers.
The divi is quarterly which has meant several times now when it goes xd the SP hardly moves! Unlike e.g. DLG, LGEN or PHNX of late which saw the divi and extra come off the SP.
So what are you missing. Nothing. Only that there is value to be found in these markets if you run you own numbers and have your own convictions.
Some other high divi payers for you to research … CMCX, JIM, SYNT, SEPL and PHNX all pretty good bets at their current SP’s! But GLO is my fav!
Usual caveats
Trek
Thanks Trek
Yes. Always do my own research. I was actually looking for the negatives but you haven't listed any !
Appreciate the other you mention. I am currently holding PHNX and got my eye on SYNT.
Thanks
Actually just added a few more. I don't mind boring and trading at a discount to NAV.
Also finally added SYNT. Hadn't seen the price today until you mentioned them. I'm sure they were nearer £3 yesterday when I looked