Member Info for tichtich

I've just read this Capital Allocation Update RNS...

https://citywire.com/investment-trust-insider/news/refinancing-burden-could-weaken-renewable-funds-dividend-cover/a2428958?utm_medium=website&utm_source=citywire_it_insider&utm_campaign=home-content-list-1&utm_content=investment-trust-insider-latest-news-list

... and I think I may have misinterpreted the dividend announcement. It sounds like the 14% increase will be instead of the Dec 2023 RPI increase, not as well as. In other words, the dividend in 2024 will be 10p, not 10p plus Dec 2023 RPI increase, which was how I originally interpreted it.

Interesting article:

https://citywire.com/investment-trust-insider/news/refinancing-burden-could-weaken-renewable-funds-dividend-cover/a2428958?utm_medium=website&utm_source=citywire_it_insider&utm_campaign=home-content-list-1&utm_content=investment-trust-insider-latest-news-list

Wow! A 14% dividend increase on top of the RPI increases. I wasn't expecting that. To be honest, I'm not sure it's justified, given that the NAV hasn't increased. I would have preferred them to reduce their debt, which is now up to 38% of GAV. Higher dividends might attract unwanted attention from politicians!

Gavster... Pikeman is taking about the price they paid for the wells. When you buy gas wells you are buying the gas along with the wells. Hope that helps.

Motley Fool's free blog is just advertising. It shouldn't be taken seriously. (I'm not sure about the wisdom of using poor advice as an advertisement for your paid advice service, but perhaps it works.)

I've been subscribing to their paid service for the last two years, but I don't intend to renew again. I've taken a few of their suggestions, but not many. Their performance statistics (relative to their benchmark) were looking pretty good when I first subscribed, but they're much worse now, since they recommended a lot of overpriced tech start-ups in 2021/22. (I didn't buy any of those, as I'm focusing on dividend stocks.)

It looks like the bears have not yet finished mauling GSF. Perhaps I'll get another chance to buy at the 63p price that I just missed last week!

It's currently down nearly 5% on the day. I can't find any specific reason. Nothing on the company website since June, apart from notices of share buybacks. Well, at least they're buying back at low prices!

It's not the only renewables/infrastructure company to suffer sudden unexplained falls. Gore Street (GSF) was well down last week, and I took advantage to buy some.

I'm tempted to buy more FSFL, but I've already got a large position, so I'll probably just wait.

Yes, it looks like a good time to buy. But it also looked like a good time when I bought a month or so ago, and it's down 10% since then!

Hi Kentio. I'm sure GSF will keep up to date with new battery technology when it buys new batteries. But that probably won't help with existing batteries. However I believe the expected life of current batteries is relatively short, only about 15 years, so that should help limit the degree to which they become outdated.

The price seems to have stabilised for now, so I went ahead and bought at 66.40p. My usual initial purchase size of 3% of portfolio. Let's hope it does better than the index-linked bonds I sold. Of course it's rather optimistic to think it will turn around just at the time I invested. But I can hope. 😉

Hi. I've had GSF on my watchlist for a while, but had some reservations about battery funds, including the risk of competition from improved battery technologies in coming years. But the discount to NAV is getting silly now. Last night I was doing some research and seriously thinking about buying. Then this morning I check the share price and see it's down 7.5% on the day! I would have bought there and then if I'd had the cash. But my spare pounds are in index-linked gilts. Unfortunately Interactive Investor doesn't let me sell them online, so it took a long phone call. And in the meantime the price has gone up 3p. What a shame, never mind. Still waiting for the money to come through, and then I'll decide if I still want to buy. I suppose the moral is that you can't beat ready cash if you're trying to time the market!

@schwee

It's not just about the yield margin. It's also about the fact that UKW dividends should rise with inflation, but bond coupons won't.

88v8: "In an ISA they have to pay you in sterling. Dollars not allowed."

I think it would be more accurate to say that in an ISA you can only hold sterling, so any dollars you receive will automatically be converted to pounds. I don't think this would enable you to avoid the currency conversion charge.

Anyway, I bought my initial DEC shares in my ISA, and when I realised that meant paying withholding tax, I sold them and rebought them in my SIPP!

P.S. Personally I don't mind, as I use USD in my ii SIPP to buy US shares, though there might come a time when I have all the US shares I want.

Have you tried using the currency election option on DEC's web site? They say you can elect to have your dividends paid in GBP:

https://ir.div.energy/dividend-information

I managed to find a few bob down the back of the proverbial sofa, and bought some more DEC shares. I missed the beginning of that surge, but I'm up about 2% on my new shares so far. Let's hope that continues. 🤔

Article on natural gas supply/demand. Note that this is 5 months old, as you have to pay for their latest work.

https://blog.gorozen.com/blog/natural-gas-markets

Click on "About Malcy" on his website.

I've diversified into some FSFL, but I keep coming back to UKW as the best of the bunch. Also, though I have them on my watch list, I've so far avoided companies like HICL and SEIT, because I think they're vulnerable to prolonged inflation, as they have long contracts that are only partially linked to inflation. Also, note that GCP invests in the debt of infrastructure companies, not directly in infrastructure. Still, the dividend yield of some of these companies is getting so high that it's difficult to resist the temptation!

I caved, and settled for 131.38p. 😉