Contourglobal Share Discussion Threads

[sam 4224] 18/4/2021 09:06

Good points. thank you

[breezer_42] 17/4/2021 20:59

Don’t forget how stable cashflows are - most contracts are long term, thermals are generally take or pay, fixed price with inflation and commodity price protection built in.

If a company like this can’t have some debt then nobody can!

My theory is it just screens badly - if investors set cautious leverage limits they won’t ever see this, and even if they see it, then if they don’t look into it properly they’ll assume it’s just over leveraged.

[sam 4224] 17/4/2021 17:04

If they decided to do the buy back, does that suggest they are comfortable with the level of debt ? Are people reinvesting the div or taking the money ? Fairly new to this stock

[williamcooper104] 17/4/2021 16:39

Rather than buying back shares they should have repaid corporate debt

[williamcooper104] 17/4/2021 16:38

c£3bn of the debt is non resource project level which amortises down against fixed price power purchase agreements - that's nothing to worry unduly about However there is £1.5bn of recourse corporate debt; that's riskier I wouldn't say it's x rated leverage - but it is more highly leveraged (or rather leveraged with riskier debt) than I'd like

[hindsight] 17/4/2021 11:41

Unless im missing something, these are highly geared

[woodhawk] 17/4/2021 10:46

...until they stop ignoring. Meantime, I'll collect the divis.

[sam 4224] 17/4/2021 10:27

And me ! good profits, four dividends a year fully covered. Market ignoring

[woodhawk] 13/4/2021 11:31

What's with these constant markdowns on tiny volume? I might have to buy some more at this rate!

[williamcooper104] 12/4/2021 16:41

Me too I've sold out of my US renewables (AY/HASI/NEE) as the yields got too steamy GLO does look cheap

[williamcooper104] 12/4/2021 16:39

A PE house can easily margin their holding to get a mid double digit yield - which ought to mean that they don't need to sell quickly

[woodhawk] 12/4/2021 16:39

Dunno, but I decided to add a bunch at below 200p.

[williamcooper104] 12/4/2021 16:26

Anyone know why the drop today

[sogoesit] 12/4/2021 13:29

Not invested here, yet, but similarly looking to invest.
Looks like a quasi-bond to me (not too different from DGOC who are in a different, more risky, space) so it would form a part of my income assets in an ISA.

For me, in summary:
The installed capacity split looks to be approx. 50/50 Reliable (Thermal) versus Unreliable ("Renewable"). The Thermal appears to be mainly cogen (CHP) and thus tends towards base-load so providing stability alongside any Natgas plants that are installed for peaking service.
Providing that capacity payments for Unreliables are well negotiated and subsidised by the taxpayer this revenue stream should be assured (subject to taxpayers' willingness to continue support).

The portfolio looks geographic risk balanced to the high side and there is higher risk attached to Africa and LatAm assets. Hopefully the yield on returns covers this country risk.
US and Trin&Tobago asset acquisition should adjust/improve this risk profile in part although I don't expect the yield to decrease below 10% all risks considered.
Management have deep expertise.
New acquisition is going to boost returns into this FY results.

Ownership sell-down, as mentioned in posts above, poses (short term) risks to the share price when/if the promoters exit. Cannot be controlled so this risk has to be accepted or rejected on a binary decision.

As a utility it looks undervalued with the current/prospective yield so I will take a stake for this year's ISA in a couple of weeks time.

AIMV

[sam 4224] 23/3/2021 09:14

Invested here not long ago but thinking of adding as like the look of it a lot. Am I missing something ? All thoughts welcome

[breezer_42] 23/3/2021 08:41

"Parent company" is a PE house with no interest in owning the whole business as far as I can see. It is, however, not on a deadline (it's ont a fund with a fixed distribution date) so I think it's happy to sit until it sees a valuation it likes before selling more shares.

Who knows though?

[rolo7] 22/3/2021 16:26

Parent company should take this private, the listing is pointless now with low free float, 250-275p?

[rolo7] 16/3/2021 14:50

back in here see what results and forecast brings, dont think they can buy any more shares back. 12p dividend over the next year cant complain!

[sam 4224] 01/3/2021 09:06

rns issued this morning

[scrwal] 22/2/2021 13:05

A bit surprised there has been no announcement about this years reporting dates yet.

[solarno lopez] 04/1/2021 15:37

nice upward movement

[rolo7] 08/12/2020 10:32

Certainly even cheaper now and they r still buying back shares

[solarno lopez] 08/12/2020 08:42

Reads well as a growing operation