Member Info for tichtich

In my opinion, it's mainly interest rates. We saw a similar drop (even lower) last year after the Truss mini-budget. There may also be a significant contribution from lower gas/electricity prices. It will be interesting to say what happens if we have a much colder winter this year.

I try not to worry about a falling share price, as I'm holding for the dividends over the long term. A lower price can even be a good thing if you want to buy more. Of course, it's another matter if the falling share price reflects an actual worsening of the company's prospects. I don't think that's the case here (or I wouldn't have just bought some more).

2. Low gas prices are probably having some effect too

Thanks for the replies to my question. I've only just noticed them. (Is there a way to get email notifications when there are a new posts to a chat board here?)

I'm still holding off on buying SUPR (and most other shares) for now. I'm hoping for a bigger margin of safety.

Hi. First time posting here under CSN. I only bought CSN a few months ago, after having it on my watchlist for a while. I was wary of it, as I didn't know how it would be affected by interest rate hikes. But the share price has been remarkably stable for the last 3 years, despite the interest rate chaos and market swings.

My main concern now is whether the dividend will be able to keep up with inflation over the long run. But, given the high current yield, I can live with some fall in the real value. I don't really expect my investments to give a real return of 8.3%. (It would be nice though.)

Well, after looking at NESF and BSIF (and having looked at other renewables companies recently), I still like UKW best. And even though I know I should diversify, I can't bring myself to buy second best! So I bought some more UKW, at 140p.

I'm still half-expecting a significant market correction from here, and holding back some cash and equivalents to take advantage of any bargains. LGEN is on my watchlist, but I'm wary of financials at the moment and waiting for a bigger margin of safety. I already own CSN, a smaller pensions company, with similar yield to LGEN, but seems less volatile.)

Prices still falling, so I'm in no rush to buy. Other renewables are looking good too, so I may diversify a bit. NESF has a forward yield over 8.2%, based on its target dividend of 8.35p. I'll take a closer look at it.

That said, I'm still concerned about the long term future for renewables investments, so a bit reluctant to buy more.

I'm thinking about adding more on Monday too.

Hi wetherboy. Well, advances in energy storage technology would be good for renewables, but it doesn't follow that energy storage stocks are a good investment.

I'm looking for safe investments, so not so keen on companies which are developing the technology. I've looked at companies which use current battery technology, like GSF (which has a nice yield). I'm put off by the knowledge that lithium ion batteries degrade over time, though that shouldn't really matter if it's priced in. Anyway, I have GSF on my watch list, but I'm not biting yet.

By the way current yield on UKW just hit 6%!

Hi get_rich. I meant that I have an unusually large amount invested in UKW, nearly 10% of my retirement pot! So I don't really want to buy even more, but I might be tempted if the price was very attractive.

At one time I was even more concentrated in the renewables sector, with shares in FSFL, BSIF and ORIT, as well as UKW. But after the sector started becoming a political football last year, I started to have some doubts, and I sold all except UKW, my favourite. I still might buy a little FSFL again, if the price is right.

I worry about the overhaul of the electricity pricing system that's currently being discussed, as I suspect that probably won't be to the advantage of renewables. And more generally I worry that there could be eventually be a glut of intermittent renewable energy, more than can be economically used. I'm a worrier!

Yep. Fruits of last year's "windfall" profits. We have the windfall tax now, but it doesn't look like there'll be any windfall profits to tax this year. (Actually, I haven't looked at the numbers for this year. I'm just guessing from the fact that gas prices have gone through the floor. But maybe they'll be up again in the winter. I'm not hoping for a cold winter and high gas prices, but if we get them at least my UKW shares will bring me some consolation!)

I'm so overweight UKW already that I'm looking for a lower price before adding more. But it's tempting, with the yield up to 5.9% last time I looked, compared with 5.3% when I first bought in 2021.

Hi Hardboy. I've been looking through SUPR's reports and presentations to find out whether the inflation linking of rents is capped, but I couldn't find that info anywhere. I'm curious to know where you got that from.

A 5% cap is pretty good. I think 3% or 4% is more common. Personally I am worried about inflation staying higher than 5%. But I guess a little higher wouldn't hurt too much, as I'd be getting a good initial yield. (I haven't bought yet.)

"I think the rush into the physical gold safety play will take gold to new highs and beyond. What are the options?"

Google and Microsoft are up. I expect many people see those as safety plays. (I'm not one of them.)

Well, I did it. I just increased my holding by 50%. (But it's still peanuts compared to some of you guys.)

Is this correct?

Gold price up + Good news on GGP progress + GGP price down = Buy more GGP

Ha! It was a Motley Fool blog article that got me into GGP in the first place, at a price about 17p. No "don't touch" then! Those blog articles are not worth the electrons they're written on. They're just a come-on for the MF subscription service, which is better, but the blog is hardly a good advertisement for the service.

U-turn number 2, and counting...

"he gave the insisted 15%discount!"

15% discount? No big deal. We can buy at a bigger discount now.

And here was me thinking that price controls were a Labour thing, and that the Tories favoured free markets. I'm reminded of the end of Animal Farm, where the pigs and humans can no longer be distinguished, I.e. the socialists can't be distinguished from the capitalists.

dun48 wrote:
"the best is most renewable companies are set up as investment trusts. As shareholders we get inflation proofed dividends"

Unfortunately, anything that hurts post-tax profits hurts shareholders in the long run. Less money in the kitty (or reinvested) reduces the probability of the RPI-linked dividends being maintained indefinitely (or of future increases above RPI if things go particularly well). The RPI-linking is the company's current policy. It's not a guarantee.

As far as I know, UKW is the only renewables company that still has such a policy. Foresight Solar stopped its RPI-linked dividend policy a couple of years ago. It has a higher dividend yield and lower dividend cover than UKW , so the policy was less sustainable. I'm optimistic that UKW can sustain its RPI linking out to the medium term at least. That's why I like it so much.

Hi. My first post here. I came looking to find out why my UKW and TRIG shares fell off a cliff today. Talk about a WIND FALL tax!

Personally, I doubt it will happen. It's not long since Bozo was talking about encouraging wind farms (as long as they're nowhere near nimby Tory voters in the shires who don't want their views spoiled). Then again, this government is making up energy policy on the hoof, when what we really need is a carefully-considered, joined-up, long-term energy policy. (Rant over. Sorry.)

Also, I don't think we've benefitted from higher energy prices nearly as much as the oil/gas companies, as the renewables subsidy regime limits the upside as well as the downside effect of price changes (or so l believe).

And I don't know why solar shares haven't fallen as far as wind, as they've benefitted just as much from higher electricity prices.

Actually, I'm patting myself on the back a little bit as I sold half my UKW shares yesterday near the peak. I was heavily overweight UKW and thought I might diversify into other renewable companies if prices come down a bit. Now I'm wondering whether to jump straight back into UKW at the lower price. Or maybe put some more into TRIG, as I think that was already underpriced relative to other renewables, because its NAV hasn't been updated as recently.

BTW I think this is the FT article Monkshood was referring to:
https://www.ft.com/content/ddbde592-a4e0-465a-9dd2-d6566790403f

"You would need 3,333 shares for each ounce
Multiply by share price
You will need £556 for each ounce

Why would you buy physical gold at the moment ?"

Err... Maybe because an oz in the hand is worth 6 in the ground?