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To provide ordinary shareholders with attractive risk-adjusted returns, principally in the form of regular dividends, by investing in a diversified portfolio of primarily UK-based solar energy infrastructure assets.
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Yet again these dumps are unfathomable. Half-year results coming but the dividend has already been declared in line with the target so can't be anything to do with that. I clearly don't know what I'm doing (no change there...) because I'm adding whilst all around are exiting. GLA
Time to accumulate post dumping this afternoon.
Back in for those sold.
Took those bought @ 78 and sold …. Around 82p pushed into GCP … let’s see if it retraces. If not fine.
A few chunky £100k buys going through around 4pm today. On top of L&G's substantial purchase two days ago suggests a few with deep pockets are thinking this is now fairly valued. With any luck we could be near the bottom of this recent nasty sell-off now. I certainly hope so, so I added a few more to my portfolio as well. Fingers crossed.
Interest rates are going HIGHER, not lower.
I think it is. now mainly the high interest rates . When they start to fall we will see a recovery, not just in this sector but generally as most. companies. operate. with. debt
Thanks for the reassurance! Having a good few at a weighted average of 100p I was becoming worried!
Hi Norfolk
I would say it's the uncertainty of the continuing yield on the current SP level, due to the dividend cover quoted last operational update. Also related could well be the debt level in so far as future interest rises would affect the companies expenditure and margins.
That said, NESF is not alone in being marked down within the sector. Both UKW and BSIF, also in my portfolio have suffered with SP declines recently. Hold IMO.
Is anyone able to hint as to why the the share price is trading at such a discount to the latest NAV of 109p?
I have tried and failed so must be missing something elemental and not simply a result of their small accounting error earlier in the year or the uncertainty in loan rates.
Interesting long term take on the future of renewables given the cost of solar panels and battery storage costs have and continue to sharply drop:
https://uk.finance.yahoo.com/news/fossil-fuels-becoming-obsolete-solar-080102259.html
So while NESF etc are suffering from higher interest rates limiting future investment and increasing debt costs, maybe the future build costs will be lower - points to some optimism for this stock and similar others when interest rates stabilise or even fall.
Thanks Twonko for such a reassuring and balanced view on this stock (and industry) - gives me some optimism.
I recently bought a fair amount of TRIG and NESF only to see it lose over 15% - that hurt (although of course just a paper loss for now).
I see today the market popped on the barest sniff of improving inflation, yet renewables still stuck in neutral and barely going anywhere. I just don't get why these stocks didn't also rebound today? Maybe Rushi's steer away from the green agenda has had some impact? (I won't go into the rage I want here).
Anyone have any educated views on where NESF (and TRIG) might go in the short term? Is this really a screaming buy point or do we wait for the (ever/never) coming crash? Feels like rock bottom at current SP but even after loads of research I just don't know right now....
Anyone brave enough to suggest where the bottom lies here? Real carnage throughout the industries share prices, plus probable more issues on financing likely ahead. Certainly keen for any updates from management.
Mostly these boards are inhabited by over-optimistic gamblers so it is a bit refreshing to read a bit of honest negativity and caution. My own take this after quite a bit of research is that there is good reason to invest in NESF. They are well diversified, well hedged against inflation, FIT prices are reasonable and rising and short of nuclear winter, the sun will continue to shine. I would prefer the div to be slightly lower than the current 9% and talk in the latest FYR of share buybacks look s a little premature. Personally I would always be much happier with debt reduction, especially at currrent rates. Full disclosure, I do now hold a fair number of there shares and bought a further sizeable tranch today. I also have solar at home and can vouch for the financial benfits it delivers me personally. Nationally, fossil fuels are increasingly dead, nuclear is expensive and takes years to deliver, hydrogen is too dangerous, fusion has been 40 years away for the last 40 years and still is. The remaing feasible options are wind and solar. Both work, both are clean, cheap to operate and here for the forseeable future. Solar is is quick to install. It ain't going away. At this price, it was irrestistible. I have donee similar with TRIG which is also pretty depressed atm.
I would expect hi-dividend share prices to fall until the payout matches inflation or other interest rates, these may have much further to rise. NAV will depreciate slowly to zilch, selling off solar farms means the loss of those assets, if the cash is then used to pay off debt(note the'if') then that makes paying dividends more expensive.
Of course if Bank rates go down the this share and the payout becomes popular.
From that it looks like a lack of forward planning, they are not alone.
CyCoXX, have to agree with your post, immense debt worldwide in every sector , government, corporate, personal. Bringing inflation under control is going to be hard, ultimately we’ve been living way beyond our means for far too long. Time to pay back, not only is the country/continent left with supporting far too many issues of our own, we now find ourselves fighting / supporting a war that could expand. Migrants that need to be housed fed etc let alone climate change.
Anyway , NESF, they were selling four solar farms to pay down debt, anyone know what’s happened?
Personally I want to see the board control all costs and remunerations going forward along side reducing debt as a priority.
Anyway
Mainly because its ex-dividend day today 17th August.... plus globally its a nervy time for investors in most stocks. I'm holding here for the medium term at least. Gla
It does make me a bit uneasy hiking the dividend whilst the SP & NAV are falling.
Well this is not going to plan, the only benefit to this will be a few more shares in a DRIP scheme.
Any justification for this in the RNS ? Or is this as I see it, sector wide.
The all important dividend cover is forecast to be c.1.3x - 1.5x for the financial year ending 31 March 2024, which is usually seen as a concern, however along with debt a concern IMO this was priced in already. . Evidently not.
Other sector companies like BSIF and UKW not fairing well too, but I did expect NESF to hold up better due to the great SP support and timely RNS.
Dartron I thought Starmer already pledged huge support to the industry, currently being constrained by some inflexible rules put in place by the current gov.
Currently the SP is pretty much at its all time low, which is unlike some of NESF's peers.
Wait this one out...
Cheers and GL.
Indeed you are right. It just flew into the 80's
Have I got that right? Other trusts in the sector also seeing yields rise as valuations fall. Is the market scared of nationalisation under a possible Labour government?
After consideration of all and the chart I held through. Results look good !!
Have checked live price but discount to NAV is well over 20%.
Last time I was hesitating about buying something like this with a high yield, and a lot of debt, it was Civitas housing REIT. I hesitated too long last time, and missed out on it being bought out for a 40% premium. I was so close to buying on several occasions! so I have bought in here, and will build a stake accordingly.
https://www.thisismoney.co.uk/money/markets/article-12063291/Civitas-Social-Housing-agrees-snapped-485m-takeover.html
Hi Jet, I know.
After seeing UKW slowly drift down over 5% after ex-div, I'm considering the most profitable action will be to sell before ex-div and wait a few weeks before buying them back or increasing holding. Decide tomorrow, the FTSE and wide market I hope will be more stable than today's 1.28% drop as I write.