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The government pledge to treble the UK's capacity to generate solar power over the next five years.

https://www.bbc.co.uk/news/articles/c626w5kq9kqo

TheLloyds Banking Group chief expects three rate cuts this year. If that happens the share price should rocket IMO.

https://news.sky.com/story/britains-biggest-mortgage-lender-expects-three-interest-rate-cuts-this-year-13295214

Paying 10.5% at todays price.

The real danger is the profit margin. It's exceptionally high at the moment and may drop steeply over the next few years.

"Importantly, it also has no exposure to the US, removing uncertainty over the future of green policies under President-elect Trump."

"Jan 20 (Reuters) - President Donald Trump on Monday laid out a sweeping plan to maximize oil and gas production, including by declaring a national energy emergency to speed permitting, rolling back environmental protections, and withdrawing the U.S. from an international pact to fight climate change."

"Victoria Hasler, head of fund research at Hargreaves Lansdown (HL.L), notes that

Rising interest rates have led to their income streams looking less attractive than they once did, rising discount rates have impacted asset valuations, and active managers have struggled in markets led by a few big stocks.

She also notes that “over the last couple of years we have seen some good quality investment trusts trading on hefty discounts“. This remains the case as we head into the New Year.

So I’m searching for the best value trusts to consider today. Here are two of my favourites.

Octopus Renewables Infrastructure Trust

Donald Trump’s return to the presidency has sent a shockwave across renewable energy stocks. Even companies with little-to-no exposure to the US have slumped following November’s election.

This provides a terrific dip buying opportunity in my opinion. One such business that’s caught my attention is Octopus Renewables Infrastructure Trust (ORIT.L).

At 63.5p per share, it trades at a huge 38.7% discount to its estimated net asset value (NAV) per share of 103.6p.

Recent share price weakness has also turbocharged Octopus’ dividend yield to 9.5%. To put this in context, the average for FTSE 100 (^FTSE) shares is way back at 3.6%.

I like this trust because of the excellent diversification it offers. It generates power from offshore and onshore wind turbines as well as from solar farms. This allows consistent power generation across all seasons, and boosts efficiency by using technologies that are tailored to different environments.

With assets across the British Isles, Finland, Germany, and France, it can also remain profitable despite poor weather or regulatory issues in one or two regions.

Importantly, it also has no exposure to the US, removing uncertainty over the future of green policies under President-elect Trump.

Such fears — however impractical — may continue to weigh on Octopus’ share price. But over the long term I think it could prove a robust investment."

https://uk.finance.yahoo.com/news/fancy-13-9-dividend-yield-055600319.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAJgePBcJIXjP05171jArtrpp08u-5UbpzPz5ARcxh3soShvzozaDhkE-pPpvT_KQr5ipOB87jA2hQjU_zGjNvQs_FPUn5tYerpoWZOznrJUMWIXzEVBkClTAihYiVD_ET5R9fFtpdd7IkL64paiOrxQDPr-diyW3EEHc6G2RLIiE

ORIT currently yields c. 8.8% factoring its c. 34% discount. From the first year of full investment in 2021 ORIT’s dividend has been fully covered and risen in line with UK CPI inflation and is on target to repeat this in the financial year ending 31/12/2024. Over the next two years, 85% of ORIT’s cash flows are already fixed and over ten years, 50% of the income is inflation-linked.

Over the last year, ORIT has selectively disposed of assets with a value of £161m, at prices on average higher than the carrying value, providing additional confidence around the valuation of the assets and hence the NAV. One of the disposals also validates ORIT’s development and construction capabilities, having been taken through all the stages through to operational, before disposal above book value. The management team of more than 150 professionals have experience, going back to 2011, in development and construction projects in addition to operating and financial experience. While 95% of ORIT’s assets are operational, relatively small amounts of capital allocated to development can create significant value, and with strong dividend cover and selective disposals, ORIT does not need to resort to raising new equity in order to acquire new assets.

Https://www.trustintelligence.co.uk/investor/articles/fund-research-investor-octopus-renewables-infrastructure-retail-jan-2025

Fed and beyond, interest rate cut expected around the world.

https://www.eunews.it/en/2024/12/16/fed-and-beyond-interest-rate-cut-expected-around-the-world/

This is the best performing income and growth trust over 1, 3, 5 and 10 years.

“We continue to think that the BoE will likely cut further than the market currently expects as measures of underlying domestic inflation fall back and demand comes in somewhat weaker than the Monetary Policy Committee’s latest forecast,” Goldman Sachs Research’s Chief European Economist Sven Jari Stehn writes in the team’s report, which is titled “UK Outlook 2025: A Gradual Pace, but More Cuts Than Priced.”

https://www.goldmansachs.com/insights/articles/uk-economic-growth-may-lag-expectations-in-2025

Https://www.proactiveinvestors.co.uk/companies/news/1059921/bluefield-solar-has-clear-path-for-return-to-premium-says-research-house-1059921.html

Interest rates are forecast to fall to around 3% by end of 2025. AGR could rise to 60p IMO.

Planning reforms will end development chaos.

https://www.bbc.co.uk/news/articles/c80vv9d4xzno

" Vistry’s just looks completely different to the other two."

It is very different from the others. Unlike other builders most of homes they build are presold to housing associationa and the local authorities. I wouldn't compare them to other builders. Traditional builders are not likely to make profits as they did in the past. Their earnins have crashed.

Meant highest ratio of free cash flow per share in the sector.

What differenciates VTY from other builders is that it sells most of the homes it builds to housing association, local authority and build to rent clients under “partnership” deals. Most of the homes under construction have already been sold. Vistry has the highest free cash flow per share in the sector.

Https://simplywall.st/stocks/gb/consumer-durables/lse-vty/vistry-group-shares/news/vistry-group-plc-lonvty-is-largely-controlled-by-institution

Likely to settle above 700p shortly. A trding statement is likely after new year, and If that's satisfactory than back to £10 IMO.

Up 32.20% in a year. Not bad IMO.