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To provide investors with long-term dividends while preserving the capital value of its investment portfolio through investment principally in operational assets which generate electricity from renewable energy sources.
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Thanks Paul2566,
Yes, looking back over a 1-year period, the SP gain of UKW looks to be slightly higher than that of TRIG, although, as they say, "shares don't go up in a straight line". I've gained on both of them (at this exact point in time - things could look different in days, weeks, etc). I haven't had either of them for as long as you have, doing most of my buying around March/April this year, but have picked up useful dividend cash along the way. I intend to hold both for the longer term, and continue to accumulate either of them on respective dips. There's no harm in holding both - this dilutes any management "execution risk".
I can't see the demand for electricity diminishing any time soon - people have and want more and more "things" that need electricity, there'll be all those electric cars needing charging, all the green hydrogen requiring electrolysis to produce it, more rail electrification, the longer-term replacement of gas boilers for domestic heating, more fossil-fuel generators will be retired, and I seem to read about nothing but delays with bringing more nuclear generation on stream, to name a few.
As you say, good to hear other investors' perspectives.
Mike.
I started a position in both TRIG and UKW in December last year, and bought more of both later about the same time, my SP including taxes etc. for UKW is £1.2848 and for TRIG is £1.2819, excluding dividends (which are pretty similar) UKW is up about 8.03% and TRIG up about 2.82%. I accept this is unique to me, and do not dispute the content of your post, but it does kind of stand out on my spreadsheet, hence my comment.
I hold both in equal measure(ish) holding 10329 TRIG and 10246 UKW, and intend to continue to hold both.
To be honest after the research I did when I first bought I expected TRIG to outperform UKW, but liked both stocks so hedged my bets.
Thanks for your response though, its always nice to get other investor views that are rationalised with data.
I think both stocks will do well over the next decade, as without doubt green energy is the future.
I definitely only pressed the button once. Both my posts should be identical!
Hi Paul2566,
"Its definately underperforming when compared to UKW".
I think it depends on the length and timing of period over which you're comparing them. If you use the chart facility on this ("LSE") site for each, and pick 5 years, then the figures contradict your statement. Crudely (I've ignored the decimals for the purpose of a 10-second exercise):-
TRIG price on 16 Dec 2016: 107.
TRIG price now: 132.
TRIG % increase: 23%.
UKW price on 16 Dec 2016: 120.
UKW price now: 139.
UKW % increase: 16%.
Against that, of course, I think that certainly recently UKW's dividends have been slightly higher.
Probably at a tactical rather than a longer-term systemic level, their respective share price performances could be more influenced by the timing of their various fund-raises. UKW have just completed one. TRIG are still in the midst of an SIP (Share Issuance Programme) that runs until 4 March 2022 with a max of 600 million new shares. Again, by my crude calculation, there's still about 239 million shares left on that, that could potentially be announced/issued at any time. Given the total number of shares currently in issue, that could be anything up to roughly a 2-for-19 new Issue. We've seen how these new fund-raises temporarily depress the share price - I've recently been through them with UKW and a couple of other similar Investment Trusts. I haven't yet been involved in one with TRIG because I too recently became a shareholder, but again I observed the temporary effect on share price.
Mike.
Hi Paul2566,
"Its definately underperforming when compared to UKW".
I think it depends on the length and timing of period over which you're comparing them. If you use the chart facility on this ("LSE") site for each, and pick 5 years, then the figures contradict your statement. Crudely (I've ignored the decimals for the purpose of a 10-second exercise):-
TRIG price on 16 Dec 2016: 107.
TRIG price now: 132.
TRIG % increase: 23%.
UKW price on 16 Dec 2016: 120.
UKW price now: 139.
UKW % increase: 16%.
Against that, of course, I think that certainly recently UKW's dividends have been slightly higher.
Probably at a tactical rather than a longer-term systemic level, their respective share price performances could be more influenced by the timing of their various fund-raises. UKW have just completed one. TRIG are still in the midst of an SIP (Share Issuance Programme) that runs until 4 March 2022 with a max of 600 million new shares. Again, by my crude calculation, there's still about 239 million shares left on that, that could potentially be announced/issued at any time. Given the total number of shares currently in issue, that could be anything up to roughly a 2-for-19 new Issue. We've seen how these new fund-raises temporarily depress the share price - I've recently been through them with UKW and a couple of other similar Investment Trusts. I haven't yet been involved in one with TRIG because I too recently became a shareholder, but again I observed the temporary effect on share price.
Mike.
Its definately underperforming when compared to UKW, but I hold both in equal measure, and for the moment will hang onto TRIG. Another 12 months and I will compare them again.
bilboburgler
Thank you for your response and explaining your thinking, it is much appreciated.
Its good to get other investor views, and you have certainly given me food for thought, I will look at this in more detail.
Actually I need to take back the Nope. Looks like the DRX strategy has worked well for the past year and today's expanison of its US wood pellet businesses (mainly bought at knock down prices at auction during a financial crisis) have now won Oz and Japanese customers.
It might be worth comparing TRIG with DRX which was Europe's biggest coal power station 10 years ago. Good strategic thinking has moved them to the UK's biggest biomass plant (if you look at the country's energy meters and you see BioMass it is mainly the Drax "plant". Along with this transition they also looked at burner oxygen injection, CCS, electricity retail and other technologies to find the right place to survive in a changing world. Did it help their share price? Nope. Why? Because it is just a untility.
Sorry Paul only just saw your comment. I think TRIG is a basic utility rather like the old power stations and as such their business model is based on borrow money, build/buy station/turbine, re-finance. They don't build or manage the stations. As a simple model that is fine but as such it is basically defensive. So Share price is partially driven by interest rates available elsewhere.
They do not demonstrate any sort of strategy beyond the simple one and so will not have a significant share price range unless someone wants the assets for reasons other than generating power. Such reasons might include green-wash or laying-off some of their carbon costs. Alternatively they might have an improved share price if say we had an international carbon tax (lets say $85/tonne or higher) but many of their energy prices are fixed so that would take time to come through the books..
Or they could carry out a major cost cutting. Right now the board are adding very little value to the business (see point about lack of strategy) and do cost a fair bit. Or they could join with say UKW and half the two companies' fixed overheads.
Finally the share price could go down at the next refinancing if they get the new share price wrong (see the last few times but one).
So yes the share price is pretty much where it is unless external forces change it. A good board would do something about it or hand over to someone else who can.
TRIG is proving to be a good defensive stock to hold in my portfolio at the moment with a dividend yield about 4.98% that is covered by x1.72 I'm considering a small increase in my holding.
Depending on how this plays out next week, I don't think its inconceivable to see some investors moving funds into stocks like TRIG.
This may help the SP resist any great drops.
Its certainly good to be in this type of stock on days like this. Takes the edge off a little.
Paul2566,
Okay, thanks for getting back. Those figures got me worried for a while!
Regards, Mike.
MikeM14
Sorry you are correct, the EPS of 11.4 is from ADVFN, when checking some other sources I use it shows 5.9 which does match the Annual Report.
Apologies
Hi Paul2566,
I'm not sure where you're getting some of your figures from in your post at 15:09 on Tuesday. I recognise some of the UKW figures from the Annual Report to 31 Dec 2020, such as EPS 6.55p. However, the EPS figure for TRIG for the same year, according to the Annual Report, was 5.9p, not the 11.4p you have stated. The 11.4p might have been for the year to 31 Dec 2019, ie before COVID. Are you comparing the 2 companies like-for-like?
Mike.
23/11 about 16.35hrs, reasonably large transaction showing 413738 shares bought @ £1.306 (£540340).
TRIG and UKW.
TRIG looks the better of the two;
TRIG: ROE - 8.6%, Dividend - 5.1%, Dividend cover - 1.72, EPS - 11.4p, Pre Tax profit per share - 7.15p.
UKW: ROE - 4.68%, Dividend - 5.33%, Dividend cover - 0.92, EPS - 6.55p, Pre Tax profit per share - 5.32p.
I own both stocks but on most of their financials TRIG looks better, yet is lagging slightly behind.
It was catching up nicely with UKW.
Any reason for the small drop in price today?
Well not a bad finish to the week.
bilboburgler
I'm not sure I follow you correctly, are you saying you don't believe the value of TRIG and subsequent SP will improve.
TRIG continues with a programme of aquisition and expansion that over time I see as increasing its value and profits, surely this will lead to an increased SP.
I'm not being argumentitive, just wish to understand your view.
I TRIG is basically a power utility with steady cash flow, SP improvement would occur only if say SHELL split into three and the green energy bit wanted to buy some ready bolt ons. I just use TRIG to give me steady cash in some low action portals and to make sure I keep my taxable income in the £34k area to track into basic tax rates.
I meant to add that TRIG hold interests in 79 assets throughout the previously mentioned regions.
I like this stock as it has a reasonably diversified portfolio which while mainly based in the UK onshore and offshore, also has assetts in France, Germany and Sweden. The assets in these regions are;
58% Onshore wind
32% Offshore wind
9% Solar
1% Battery storage
Given the unpredictable nature of wind especially, as technology improves regarding battery storage, this could be another growth area, so its good to see TRIG with a toe in the water.
I am not sure that it is the nature of this stock to shoot up in price, but conversly I don't think its likly to plummet, and it provides a decent reliable dividend, which would usually increase each year, with the obvious exception.