Blackrock Energy And Res... Share Discussion Threads

[marktime1231] 07/3/2022 18:09

A ten year high maybe, good old BCI got to 180p before the 2008 crash. A rare and significant premium to NAV allowing new share issues is reinforcing progress, and copper briefly testing $5/lb, well done and good luck here.

[skinny] 07/3/2022 13:00

Another ATH @138.50p

[marktime1231] 03/3/2022 20:09

Agree with the defensive diversity in BERI but they don't seem to settle on a winning portfolio, continually making big adjustments, and not enough priority on income. And you are right, backing just one energy and resources stock, even a winner like RIO, would be too risky. But I decided to take my chances and see if I could do better.

From the proceeds of selling BERI (at 88p up 64%) from my trading portfolio I have rinsed positions in MP Materials and Li-Cycle for 10-20% gains, and invested some of the proceeds in BMN, IES and RRE all of which are holding their own at the moment and are full of promise but no income or gains as yet. Meanwhile a small stake in BSE has paid out 28% (*) in a year, more income than from the whole of BERI, and could soar if it gets the Toliara license. The rest I transferred across to my ISA and in to RIO which is up 35% and paid out 13% (*) since. Some also in BP which BERI shunned and must be regretting its exit from oil.

My income portfolio proceeds of BERI (at 90p for a 12% gain) went almost all on UKW and GRID which are up around 15% since and nearly twice the income from BERI. These long term bets on wind energy and battery storage have defensive qualities and are enjoying a similar outlook to commodities.

Time will tell if I have got this right, ask me again in 2 or 5 years, but it feels like I am getting double the income and commensurate gains / prospects.

(*) including next weeks ex-divs.

[azzuaz] 03/3/2022 14:14

marktime1231,

But unlike a single miner co, with Beri you don't run the same risk of a single company turning badly... wealth Preservation is very much a strong aspect in this market

[marktime1231] 03/3/2022 13:10

Yes and no JF. Sorry not to be riding this share price wave. Not sorry I reinvested directly in miners like RIO where the share price is also soaring but the pay out is super - over 10% even at current sp, compared to BERIs miserly 3%. Yes missed out on some capital gain but it felt like I was investing indirectly only for BERI to pocket the income themselves. BERIs strategy to transition progressively in to low carbon and renewables where the income stream is over the horizon is backfiring.

The last commodities supercycle BERI eventually got up to 1.5p per quarter at which stage I was a huge fan, and I guess if you bought in cheaply there is an argument to hold for that sort of income to come round again in a year or two. Or you could take the capital gain now (6 months ago) and reinvest for 3 x better income in direct miner stocks.

[jfinvestments] 03/3/2022 10:23

Wish I hadn't sold.

[lozzer69] 03/3/2022 10:11

Wish I bought some more

[skinny] 03/3/2022 09:12

10 year high @136p

[mister md] 12/1/2022 09:32

happy to be still holding this as one of my core holdings (BRWM also)

[carpingtris] 09/12/2021 15:13

In at much lower share price so my yield is more that 4.4% anyway ;)

So yes I welcome the increase - every little helps.

[epo001] 09/12/2021 12:31

But you sold out, why are you bothered?

[marktime1231] 09/12/2021 12:20

Too little too late BERI at last upping the quarterly dividend to 1.1p for a 4.4% yield which will satisfy those of you content with modest returns, but not me when holdings like BHP RIO and EVR have all been yielding over 10%. Actually the yield on the very top holding, Vale, is reported to be 20% gross at the moment.

No doubt the yield and share price has further to go, if commodity prices and demand for iron ore flourish again. But I am not waiting around hoping that BERI will eventually distribute some of the cash flooding in to its coffers. The management of this trust do not appreciate that the I stands for Income and instead uses cash to continuously adjust portfolios and pay themselves handsomely.

My stake has been reinvested in select UK commercial property where asset values and share price are recovering strongly while paying a progressive 6-7% yield.

[marktime1231] 27/10/2021 16:44

Quite agree with you citytilidie. I mis-timed BERI expecting it to cycle down deeply with the collapse in iron ore prices. Oh wel, put the proceeds to much better use, it was in my income portfolio and not pulling its weight. As a long term holder it does cycle round and will tempt me back when conditions are right. As you say if you can augment income with the proceeds of a little well-timed trading it makes all the difference.

[citytilidie] 27/10/2021 12:44

Thank you Marktime, but please keep an eye on BERI as they will create a good buying opportunity in the near future I’m sure. They are a good safe diverse share, and if the discount increases to 7/8/9% then I would jump back in again. I am in and out of shares like SHRS, VIP,BIPS ,BERI, JEFI and BP all the time as they all seem to have patterns once you keep your eye on them for long enough. Just sold BP earlier this morning just in case oil is adversely mentioned at COP26 next week. If they back down to 320 quite quickly then I will buy back.
A 10% difference in the share price plus a dividend of 4-5% is a great return if you can do it once or twice a year.

[marktime1231] 21/10/2021 16:11

Much better timing than me citytilidie well done. The market for iron seems to have returned to near normal but things like copper are still at highs. Still can't work out why BERI is paying less than 4% while receiving (my estimate) twice that much in income from its biggest holdings, but a scan through the portfolio thank you Skinny will show they have been spending to build stakes in renewables in favour of mostly divesting big oil ... swings and roundabouts. I will not be back to BERI until it pays a better dividend, in the meantime I will pick my own from miner, oil and new energy stocks (eg Base Resources, Rainbow Rare Earths, ?, ?, BP, SSE, UKW, GRID)

Currently out of gold, copper and lithium can't decide where looks good value.

[citytilidie] 19/10/2021 13:05

Just sold out again at 103 as they have just about hit NAV rather than trading at their usual 7-10% discount. Sold them earlier in the year at 109 before buying back in the late 80s. I might be a little early as mines and coal are doing well, but the discount normally catches up with them again at some point. Will definitely buy back again, but willing to be patient.

[skinny] 11/10/2021 15:34

The unaudited net asset values for BlackRock Energy and Resources Income Trust
PLC at close of business on 8 October 2021 were:

99.53p Capital only
101.20p Including current year income XD

[marktime1231] 16/9/2021 13:37

Well that has settled it, I am out out at just over 88p.

[marktime1231] 15/9/2021 22:12

Guess the cash NAV component is income net of trading net of issues and buybacks less fees etc, not easy to get a clear picture of what is the raw income from underlying investments just by looking at the NAV rns. The interim report said H1 (net ?) income of 2.07p versus 2p dividends, but since then the big mining companies have been throwing off dividends.

If in 2021 the top constituent companies are paying out 9-14% in regular and special dividends why should investors in BERI be content with a 4.5% yield. Might as well invest direct rather than wait for BERIs other portfolio holdings to come good.

Having been in since way back and with an average cost in the 50s my exit price target was always 88p. I have sliced some profit and trimmed down a little at higher prices already, and have been dithering waiting to see whether Oldman Sacks' prediction of a commodity super-cycle comes good. China has dampened that outlook, so actually it is big oil and gas now set to appreciate but BERI has been divesting those in favour of renewables where income is still building slowly.

BERI are holding back some of the super income stream without giving sufficient consideration to distribution. They overlook the priority, the I stands for income. Not the first time I have felt we are being cheated. Perhaps they can address that when giving lectures about discount management by investment trusts.

Torn between selling out completely in the run up to ex-div, or keeping a small stake in case the price surges again.

[aleman] 15/9/2021 17:27

I'm not holding but, when I did, I used to compare accrued income with the same date in the previous year. It's currently 1.76p versus 1.74p. It's crude but I'd suggest there is no sign of momentum that might increase the dividend. It can change fairly quickly, though, due to timing of payments, special dividends or sudden changes from large holdings. I still think it's worth monitoring.

[marktime1231] 15/9/2021 16:09

Oh well another penny it is then. Unable to find even a little progress in the dividend will make it easier to decide to divest at an opportune moment.