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Does anyone have an idea as to why Marshall Wace has a short position in 1.59% of Yellow Cake?
I think Uranium will do very well this year. There's a discussion here:
https://independentspeculator.com/Kitco-2022-12-21
I still think the year for markets will be negative, but governments are chasing uranium in all scenarios.... If war continues or war stops, they still don't want to be reliant on Russia. Then to hit net-zero targets they also need to use nuclear power.
I hope you subscribed. It went well in the end.
The company does not choose the price it will sell shares for in a bookbuild. They call up the large institutions and ask these institutions what price they would be willing to pay for a large block of shares. After canvassing a few institutions and getting a general idea as to what price they can achieve, they then announce the bookbuild and their broker calls these institutions to commit.
The USD share class seems better value due to the smaller spread. But I read that they locked themselves into PPA contracts for an average term of 14.4 years so that seems to me like they will not get the benefit of rising power prices.
I'm wondering if the income that TEEC receives is inflation-linked and if so, is that link subject to a cap and collar (in which case it's not a true inflation-link). I have just been skimming through the last financial reports but couldn't find an answer to my questions. I recently looked at US Solar Fund and was disappointed that their power has all been sold on PPAs with an average life of 14.4 years, so it seems to me that they will not benefit from any rising power prices.
Thank you for a very detailed explanation.
A friend tells me that DEC hedges the gas price... So they don't benefit from rising gas prices and they lose money via the cost of the Hedge. Is anyone else aware of this?
Since all their assets and earnings are in USD, the recent strengthening in the dollar is very good news for this company and the Natural Gas price is still strong so I think this is very undervalued.
Have SEQI mentioned in any of their news releases about how the increased Corporation Tax and falling renewable power prices will affect their NAV?
Today, GCP Infrastructure (who seem to me to be very similar in business type and assets) announced a 9% decrease in NAV over the year and the stock is trading on a discount of -1%. The decrease was attributed to those 2 factors mentioned above. So how come SEQI have not addressed this issue and are trading on a 6% premium?
I'm still puzzled as to why a debt-company is exposed to declining power prices -don't the operators of renewable infrastructure have to repay their debts regardless of the price at which they sell their power?
I suspect they "kitchen-sinked" this report and the NAV is reflecting the worst case scenario of declining long-term power prices and rising corporation tax. I'm still puzzled as to why a debt-company is exposed to declining power prices -don't the operators of renewable infrastructure have to repay their debts regardless of the price at which they sell their power?
The primary bid offer for Digital 9 closed at 2.30pm today. The app seemed to have crashed as it wouldn't respond to me and I called someone else and his app also wasn't responding, so it seems they can't cope with the traffic near to deadlines.I got a market buy quote at 106.39 to buy DGI9...so there's a premium now to the PrimaryBid price.
It's a good sign when a company that has recently raised money is able to invest it quickly rather than sit on the cash (e.g. there was US Solar Fund that took ages to invest their cash and that was a big drag on performance). I see this primary bid offer as a good sign that they see suitable investments.
The recent RNS shows that they have announced a dividend of $0.0075 for the quarter. So over 4 quarters that will be $0.03 cents. 3 cents on a share that's $1.06 is even less than a 3% yield. There are better yields available on other shares, including with Hipgnosis Songs Fund. Am I missing something here? E.g. Is there any chance the dividend will be raised?
Also... Which institutions are you aware hold this Stock?
I bought this with the Primary Bid offer but it took so long to be credited my shares that they had fallen substantially by the time I received them. I have no idea what the business does... Is it something like VOIP calls?
Thanks for that post -a very detailed analysis.
I'm looking at buying into this fund, but I notice from charts that the share price dropped about 80% at the end of 2018. Is this correct or did they do some corporate action such as a share split or paying a special dividend? Thanks in advance.
I see your point, but I can also see GCPI as very. similar to a government inflation linked bond or TIPS. That's to say, if inflation rises, the yield should rise and the capital value therefore increase as well. If market interest rates go up, fixed returns become worth less, but with this I think its returns are index linked and default risks are very low.
There have always been overdone periods of fear in infrastructure funds and they have always recovered. Remember when Corbyn threatened to nationalise them all without compensation? And GCP was at that time the safest of the bunch due to being a debt fund. It still is the safest, has the best management team and best company structure backing it. The market is totally irrational in valuing this at the moment.
Where else can you get an inflation linked yield of 7%? And most of the borrowers are governments or government backed that can just print money to pay you back.
Most of the "non-mining" primary bid offers have risen after the offer. They are only raising £1m I believe so should easily hit their target. So I bought tonight.
I had a disappointing experience with the Primary Bid offer a few months ago for Shanta Gold, and I saw Serabi's offer this evening as having the potential to similarly disappoint. Small gold miners are very unpopular and all mining companies burn a lot of cash getting mines into production. I also bought the Bacanora Lithium offer via Primary Bid at a 23% discount I believe - but that discount quickly faded away.