The article from post 478 :- |
Big fat divi just landed. |
I’d also note that directors have been willing to purchase stock 5-10% higher than current levels. Can see a steady rise back to the 90p area and the update today certainly puts a floor on the stock |
Just that the process of marketing with an indicative price of AUD200-300m has begun, of which FSFL own half |
Is there anything "new" from that link Rongen83? It seems to be subscriber only |
hxxps://www.afr.com/street-talk/foresight-kicks-off-200m-plus-sale-of-aussie-solar-farms-20250217-p5lcva |
Divi was well covered 1.4x even with the lowest sun since ipo. Current yield 10.3% :-) |
Yep mergers incoming. HEIT wont be the last takeover. And fee reductions now coming across the sector. Bargains never last long |
Reading between the lines. Things are already afoot |
NESF - £384m
FSFL - £428m
BSIF - £515m (after recent bounce).
Market caps rather than NAVs or assets. |
Putting together two or more of FSFL, BSIF, & NESF would make some sense. But sounds like there's wealth managers wanting liquidity so they can sell more. |
The Board has actively engaged with Shareholders over recent months and is keen to engage further. Shareholders have expressed a range of views to the Board. While some have expressed a desire for liquidity, others are seeking ongoing exposure to the listed renewables sector through a vehicle with greater secondary market liquidity and scale to drive efficiencies. The Board's role is to balance these objectives and deliver value to Shareholders in an efficient and effective manner by exploring all options available. |
Saba's actions likely to trigger a raft of corporate activity in the IT space |
Not before time, this.
At risk of cross-ramping, FSFL & NESF charts, vs BSIF, have got me adding BSIF. |
Two broken downtrends for the price of one.
free stock charts from uk.advfn.com |
 If you are selling off assets to buy discounted shares, your return on capital does go up, but your capital base erodes while you still have the same management charges. It works for a while but you experience diminishing returns and end up with lack of a buffer to cope against black swans and less clout to negotiate on pricing, making dividends higher but riskier. Once your capital base erodes enough relative to management charges, you seek to reduce the management charges with mergers. This has been happening in the investment trust sector and the fund with the weaker capital base tends to get the worse terms in the merger - to complaints from shareholders.
It's good short term (especially some director options/performance targets) , not so good medium term, bad long term for holders. Eroding capital bases/disinvestment is bad for the UK economy/non holders over all time periods - just less noticeable to begin with.
Shareholders should think long and hard about authorising share buy-backs, especially where it shrinks investment funds'/trusts' capital bases. Can the fund/IT cover management charges/overheads (and other unknown risks/black swan costs such as a failed project or investment) if it keeps shrinking itself? |
Also with eps going up,and dividend expenses going down our dividend cover should go up because of less to pay out. |
Well every time they purchase shares they are forfeiting the dividend on that share,so it is self funding if our share price is low enough,eps goes up,roce goes up, dividend costs go down.
Imagine it as if they are paying down a debt and once they have paid for it they no longer need to pay the quarterly interest payment.
Financially it will make us stronger,and it doesn't mean we can't make deals in the future or add kWh production going forward.
It's just the share price is so low it would be silly not to. |
I want long term income. You are not encouraging me to buy any more of these shares by suggesting selling off the assets is the way to make a quick profit. What happens in the long run? |
Alemanwhat you say would be true if Renewable trusts were selling lots of assets. They are not,in any case too many alternative trusts came to market when UK interest rates were between 0.75% and 0.1% and EU between 0% and negative rates. Some of them now winding up is no bad thing. Selling a few assets near NAV and buybacks at 30% plus discounts makes sense. |
I never said share buy-backs do not enhance EPS (and help directors hit options targets).
I said constant selling of assets by all funds ultimately devalues the assets being sold and shrinks the funds. Is it worth enhancing EPS slightly now if it means half the funds have wound up in 10 or 20 years, destroying the fund/investment trust industry, with most assets passed to private equity and hedge funds at cheap prices? It seems very short sighted. I think private investors need to think harder when buy-back votes are put in front of them. |
I own Caledonia investments CLDN,and they do the same,if the share price is low against nav,and they have been around a long time, I'm sure they wouldn't do it if there was no benefit.
It's wasting time and effort. |
I'm inclined to agree steve. They say in their bumf somewhere that they are proving the value of the assets by selling them and recycling that capital into newer, undervalued assets. I don't have the time to find that statement right now but sure I've read it somewhere. Spending proceeds of sales on buybacks with the current discount. if no better option, imho is also value enhancing. |
In theory perhaps, in reality it doesn't.
Alternatively pay of debt with cash generated. |
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