The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Comforting to hear others have similar views.
A lot to digest about what tichtich posted re NAV's for renewable firms.
It's difficult to get clear valuations but I've found this resource useful instead of relying on NAV's alone:
https://valueinvesting.io/NESF.L/valuation/dcf-growth-exit-5y
By all accounts, even with a question on NAV accuracy, investment trusts in this sector appear a strong buy, but there is this recent endless wave of waning support. I feel that firms the chances of some form of M&A consolidation here as low valuations, improving rates, demand for renewables, subsidies etc make this attractive especially when there are so many small small players duplicating effort in the same space - consolidated they would be a real force.
As said, best strategy seems to be buy on weakness and DRIP dividends... maybe just add a tactic of buying across the sector to increase chances of catching some M&A action (if that ever happens) :-)
This article is interesting background summarising the big drop in sentiment in investment trusts lately:
https://www.cityam.com/appetite-for-investment-trusts-has-fallen-to-the-lowest-level-in-a-decade-could-this-be-the-beginning-of-the-end-for-the-sector/
I just don't get it though - by all measures NESF (and counterparts) are good investments with good income and big NAV discount so a steal at these prices. Other than high interest rates which by all accounts is abating, anyone forward looking should want to grab a share - so why are they not?
I do believe there is potential for some M&A here - hopefully that will kick off some interest in these funds as I'm (and I'm sure many of you are too) nursing a big paper loss at the moment...
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....
Hi,
Does anyone put any value on the Simply Wall St. analysis of LGEN?
It shows poor health and future for the company on it's summary snowflake analysis.
It also shows AV. as relatively strong on health and future.
This doesn't fit the consensus of current thinking I've seen elsewhere on these measures, but if anyone has any strong opinions on these tools like Simply Wall St. be very welcome to hear them.
Cheers