You must be well above average5 Dec 2023 10:28
Am below 70p average now just! Trust my own research, been in this situation many times before and watched it turn. Wasn’t so long ago SEPL was dragged down from 120p to 85p now it’s back up and set to reach new highs imo.
Like I have said before for a yield investor DEC offers a contrarian opportunity at this price. £25k in here will give you more yield than £100k in the FTSE!
You could then manage your single company risk by putting the other £75k in a building society for another 5%!
That means you only expose 25% of your cash to the markets instead of 100% albeit in one company. And if the market tanks 10% you could loose 2.5k off of Dec but 10k off the 100k in math terms.
I haven’t seen anything in the accounts that’s put me off. Indeed the biggest risk was rates continuing to rise which would have affected the 12% of unhedged debt. Now the rate outlook has improved significantly!
Ops wise volumes and sales are doing fine so is fcf and they even got maintenance downtime included in the last numbers!
The macro situation for gas remains positive so we should still land the volumes and run off debt.
The latest TR1 was a buy by MNG, we have US insti holders in Columbia, vanguard and are in Wisdomtree smallcap ETF and Globals super income fund. All US institutions.
Like others have muted I wouldn’t be surprised if there was a bit of orchestration in the last couple of days to make the listing more ‘appealing’ although a declining SP surely isn’t helping!
I sold elsewhere to top up at these levels. A 20% upside from yield at this price is compelling.
I guess we will find out in the next couple of weeks but either way it will be a nice big divi payday on the 29th!
Usual caveats
Trek
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