Bbgi Global Infrastructure Share Discussion Threads

[fabius1] 07/4/2024 21:02

Tag57. Yep. That is, after all, the chief 'raison d'etre' for investing in closed end funds. I think there are really only two fundamental reasons for BB's with IT's. A lack of suitable investment opportunities and a cue to shareholders that the management consider the fund to be undervalued, in their opinion. Aside from macro uncertainties, one would hope they know their onions. Otherwise we are all doomed :).

[tag57] 07/4/2024 17:51

Share prices are a fickle thing. Without getting into the whole BB discussion I would much rather see BBGI reinvest any surplus money into more assets and let the share price take care of itself. The share price will sort itself out in the long term, up or down.

[topvest] 07/4/2024 11:25

To be fair to INPP share buybacks only make sense at the margin as you wouldn't want to take on an RCF at c7% to buyback shares. Selling assets to buyback shares may make more sense. I think we will have to see how infrastructure performs as rates come down. There is a lot of money in gilts. TN25 is the most popular investment on Interactive Investor by some margin. 4.7% interest or c7% if you gross-up for tax. When this dips to c4% you will see more interest in equities for yield again in my view which is c6 months off.

[jeffian] 04/4/2024 15:42

I very rarely act on newspaper tips - if anything, I tend to take it as a contrarian signal! - but on this occasion I was looking for a steady IT with a good yield to fill a gap in my portfolio and this one seemed to fit the bill, so I'm in.

[fabius1] 04/4/2024 13:07

Rik Shaw - Love the moniker :).

[rik shaw] 04/4/2024 08:35

Tipped by Questor in the Telegraph today.

[williamcooper104] 31/3/2024 22:06

Hold very full positions in bothBBGI is less risky and slightly more expensive Albeit BBGI is very conservative on its valuation assumptionsSo if I had to pick one it would be BBGI but happy to hold both (I'm 22% in BBGI/INPP/HICL - less in HICL than BBGI and INPP)

[mpage] 31/3/2024 21:41

Interesting to compare the market's positive reaction to BBGI's FY23 results against the meh reaction to the much larger INPP. Both have reported similar results, both have cleared their RCF and both have set similar preannounced dividend growth targets for FY24, FY 25 then back to the usual rate for FY26.

INPP commenced a buy back programme but of just £30m or 1.25% of market cap. That's tokenism by the board and makes me wonder just how committed they really are to narrowing the discount. Are investors still concerned about its exposure to Thames Tideway despite all the reassurances it is ringfenced? IF Thames Water is eventually nationalised this may increase the perceived risk for INPP (mostly UK assets) compared with BBGI (33% UK) but the rest overseas and in pretty low risk roads/transport - although quite a bit of the UK exposure is schools/hospitals. But can't see an incoming Labour government daring to renationalise PPP - couldn't afford to have it showing on the books.

Good to see that BBGI's management is incentivised by growth in NAV per share and dividend growth.

[topvest] 28/3/2024 14:01

Yes, investors are not interested in boring at the moment! A good presentation. I think the only question mark in 2024 is whether they do any buy-backs or buy new assets, particularly given the RCF is clear.

[williamcooper104] 28/3/2024 13:13

Nice and boring

[nickelmer] 28/3/2024 12:00

Yes very solid, very happy to hold a decent size of these, look forward to presentation later

[topvest] 28/3/2024 11:44

Great results - added a few more. It's a quality bargain. Presentation at 1.30pm.

[williamcooper104] 15/2/2024 22:07

Like INPT too Don't like HICL relative to BBGI (low risk) and INPP (higher risk but better priced) Though when you dig into valuation assumptions on BBGI they aren't so expensive - eg they are very conservative on future inflation

[nexusltd] 15/2/2024 20:16

Of similar risk profile I like INPP, and for a little more risk, more potential cap gain PINT.

[hindsight] 15/2/2024 19:30

Now topvest & specto has put a bottom in :-( (suspect the divi news today had some effect too) are there any others of similar risk profile to look at ?

[topvest] 12/2/2024 16:36

I've picked up a few more today. From a chart perspective it seems to be starting to level off. Near 7% yield on these assets and a 15% or so discount is very attractive in my view. There was a 20%+ premium a year ago and until recently its always been on a premium since IPO. In a few years time this will likely be a good buy point. It's difficult to think of anything that could go wrong really with the portfolio as its bullet proof and they use a conservative valuation - prudent assumptions and no portfolio premium (i.e. its a sum of parts valuation). The only negative was one of the joint CEOs stepping down, but he is at retirement age. Anyway, I probably have enough for now. I've got a pretty much full size initial position, but might still be tempted for a few more. I just can't find anything as attractive as this on a risk reward basis - i.e. very low risk, no debt risk and c10%/annum reward. Renewables are getting a bit more bumpy, given gas prices now being down 40% in the last year, so I'm laying off on those until we get year-end results.

[fabius1] 12/2/2024 12:54

'But BBGI does look cheap, unless there's a nasty hidden within it.' Indeed, the question is, what might the hidden nasty be? My hunch is perceived tremors within the EU in view of growing unrest. That aside, there have been signs of hefty buying over the last few days as perhaps part of a shift towards 'bond' related instruments. We are certainly seeing a retest in Treasury/Gilt pricing.

[spectoacc] 12/2/2024 12:20

Bought a few, grr. It nearly always goes wrong when I'm negative on a stock, patient, then eventually pull the trigger. ADIG a great example, LTI another.

But BBGI does look cheap, unless there's a nasty hidden within it.

[hindsight] 12/2/2024 11:44

Seller in full flow again. Have rolled some more TN25 into these

[williamcooper104] 09/2/2024 14:47

Near 7 divi yield that's growing with next to no refi/interest rate risk BBGI is one of my top holdings Bought for boredom; when HICL started getting a little less boring Not disappointed

[williamcooper104] 09/2/2024 14:46

Fortunately BBGI just shares a couple of ticker letters with DGI19

[spectoacc] 09/2/2024 14:17

Agreed - some whole sub-sectors have come unstuck, eg HOME/SOHO/CSH, or GRID/HEIT/GSF.

Drop me a message if you find anything interesting - and check out SEIT perhaps.

[topvest] 09/2/2024 13:42

Yes, I think they are just trying to follow the herd. It will end in disaster for the bubble its creating. I have put in a VCT application today, but want to take a look at income value over the weekend. There are some wonderful bargains if you focus on oversold equities where the dividend is very well covered. BBGI is a good example. Nearly 7% dividend yield for the lowest risk alternative on the market. Some financials are super-cheap as well. On alternatives, I think investors have been scared by some big disasters, so best to stick to the quality names with long track records.

[spectoacc] 09/2/2024 12:56

Picked up a handful of BBGI in the accounts of others; still can't quite pull the trigger for myself (not helped by having a DGI9 catastrophe).

IMO these baffling markets are down to funds/asset managers selling. There's quite a few RNS's going through on some. If it's a stock they're not selling/don't hold, then happy days. If it's one where they're selling say 10% of the equity - then ouch. They don't seem to care all that much about price.

Not saying that's definitely BBGI, but has been some strong volume just recently.