Gresham House Energy Sto... Share Discussion Threads

[notbitcoin] 22/6/2022 15:11

It seems like the big boys are buying in

[notbitcoin] 22/6/2022 15:09

Top up today I was hoping it would come down. But i will top up next time on downs

[frederickbloggs] 10/6/2022 12:05

Agree with the sentiment here. One of my better recent-ish holdings, bought in at 103p and hold for the long term. I also bought Harmony Energy Income Trust at launch and I hope for more of the same there. Harmony are partnered with Tesla which I hope eases the battery supply issues as they ramp up their projects.

[igoe104] 10/6/2022 11:55

Totally agree gents, this is a great sector for many years to come. I hold UKW, Trig, Grid. And s small cap company TGP which does cables and cable protection for wind warms. Happy to hold all four for many years to come.. in 10 years or so, they should all benefit big style...

[battyliveson] 10/6/2022 10:53

Thank you Pavey Ark. I am targeting 20% of SIPP in storage and renewables. I will have a look at DORE and CORO. Best wishes. B

[pavey ark] 10/6/2022 10:33

BattyLivson, I have number of renewables and agree that there is a very good investment case to be made (it also helps that I support the principles involved). My view is that a 5% yield and a 5% capital gain makes a very attractive investment. My renewables portfolio has done better than that but I expect things to settle down and move on at this rate. Re: lithium ...you may want to look at DORE which is heavily into Swedish Hydro and Scandinavian wind ....I like their management team....no lithium issues as they store the energy in high reservoirs, they do have UK solar. If you are really into renewables there is a rather strange one for you ...Coro. On the face of it Coro is a gas company but changing to SE Asian renewables ...not an IT but certainly asset backed and IMO very cheap. Although I get a bit of noise on the bb this company is moving to be a pure SE Asian renewables company.....big solar projects being set up (and wind)so you may have concerns over materials supply. As a GRID holder I can see where lithium/battery supply may be a concern but the management here have always seemed one step ahead of the game.

[battyliveson] 10/6/2022 08:50

I would be interested holders thoughts here. I hold GRID and GSF along with BSIF and TRIG. Given the growth in renewables I feel there is a good long term story here, albeit the premium is already high. My concern is that recent articles have suggested that a lithium shortage will hamper the growth of the sector, hence proposed roll-outs will be delayed. I have briefly looked for a lithium etf and would have some passing exposure in BRWM. B

[igoe104] 09/6/2022 07:56

Good to see Blackrock building a substantial postion...

[catch007] 27/5/2022 17:15

nickrl: Yes it's a concern shared across several Trusts - simply growing assets on the back of and not supporting investors e.g. ASLI. However GRID as you have noted seems well placed though not without challenges. GL

[nickrl] 27/5/2022 14:04

@catch007 im getting weary they are scaling up fast along with others and there isn't clear visibility from NG on the volume of frequency response services they will want and prices have already dropped back for the new dynamic services. The positive though is how much they can make on trading now especially as prices are probably now reset to a much higher level for at least next five years, unless there is a miraculous recovery with Russia, so thats the counterbalance. My view is divi growth will get crimped with the expansion of the share register but as you got in early that's not an issue.

[catch007] 27/5/2022 09:30

Been in since the start and happy to hold. Building scale and prospects look good imho.

[jonwig] 27/5/2022 08:12

GRID "has raised gross new proceeds of £150 million through the issue of 103,448,275 ordinary shares of 1 pence each in the capital of the Company. The Placing was significantly oversubscribed and a scaling back exercise has been undertaken." That raises the total from 438m to 541m shares. They started with just 100m in November 2018. ("And we ain't finished yet.")

[marktime1231] 26/5/2022 11:31

Thanks jonwig, for some reason I missed one of the three rns yesterday which gave the key details. My observation was that there is no need to raise funds (too) far in advance of paying for the deal, eg keep the lag to income short, although of course early-stage investment increases the value add opportunity. Looking to GRID to balance the two priorities of enhancing NAV and improving net income. The additional projects are a significant expansion of the pipeline, but mostly scheduled for 2023 and 2024. I wonder who the sellers are, Eelpower maybe and ? The immediate projects in the list Stairfoot and Project Y were, I thought, something GRID said was part of the reason for the 2021 fundraising? The prospective end June NAV was already projected to 145p even though the end March NAV was printed at 131p. An issue price of 145p not much of a premium then, and a sharp discount to the share price which was heading for 155p. Plus a 4.8% yield, an easy corporate sell. If we want to take advantage we can buy some in the market ourselves at 148p. Good that they are adding longer duration projects, and good that a conveyor of project commissioning will continue the process of uprating the NAV. Enhancing asset value and share price will please most people, we will just have to be patient and wait/hope for a corresponding improvement in income at some stage.

[jonwig] 26/5/2022 08:24

marktime - the RNS describes the pipeline which is already at an advanced stage. catch - I agree that 145p is a bit rich, but their forecast might easily fill the placing with a scale-back. I suppose a lot of big holders (pension funds, say) couldn't buy big enough in the market and hence rely on placings.

[catch007] 26/5/2022 08:13

Paying well over NAV at 145p (despite the forecast NAV uplift) doesn't seem like a great deal to me.

[marktime1231] 25/5/2022 12:22

Secondary placings as and when required, no shortage of market demand but no point issuing stock to raise funds until actually required.

[hiddendepths] 25/5/2022 10:51

I suspect, spangle, that they feel they have a golden opportunity to massively scale up cheaply and that this window of opportunity won't last too long. It makes sense to establish the leading market position at this relatively early stage of what looks to be a high growth market for the next decade at least. I also suspect that they want to be in a position to pounce on opportunities as and when they crop up - before a competitor, actual or prospective, can get their act together and turn them into auctions. imho good management!

[spangle93] 25/5/2022 10:23

Plenty of shares to come 438 MM shares in issue "The Company is implementing a Share Issuance Programme to issue up to 400 million New Shares over a 12-month period, including for the avoidance of doubt any New Ordinary Shares issued as part of the Initial Placing." Shares related to today's announcement will be around 104MM Does that imply another 3 similar raisings - and if today's 25% tranche funds the majority of the existing pipeline of projects, then how many more "ready to build" projects are actually viable. Or was the "up to 400MM new shares" in case the price fell and more shares had to be issued to raise the desired total investment capital

[davebowler] 25/5/2022 09:46

hTTps://www.openexchange.tv/edison-group-real-assets-uncertain-world/real-assets-uncertain-world-renewables?category=1127

[nerja] 25/5/2022 09:40

-- The Initial Placing is expected to close no later than 3.00 p.m. on 26 May 2022 Don’t think it’s open most platforms won’t have the time to get it through ,it’s why I have topped up.

[frederickbloggs] 25/5/2022 09:25

New shares placing? I wasn't aware of that. Not an open offer, I presume. Looking forward to collecting the dividend on Friday.

[nerja] 25/5/2022 09:23

Well there is the placement and it closes tomorrow which suggest it’s covered already. I have topped up 6k at 148.275 just in case we can’t get it.

[nickrl] 24/5/2022 19:28

This has blown up because some mega offshore windfarms that have recently been commissioned with a CfD contract have chosen not to enact them which means they don't have to return the excess income received above the CfD strike price. They can do this legally for a few years before they lose the right to a CfD but if power prices likely to now remain higher they could take the risk. GRID do trade power as well but majority income is currently providing frequency response services which with more renewables on the system is going to be its main income stream although as ive said before there are pipeline of battery storage installations being installed which will drive the price down for these services.

[sf5] 24/5/2022 19:14

Yes, I guess the share price strength suggests GRID is not in the firing line, and might even benefit from investors re-allocating companies that are, but these taxes can be a blunt instrument!

[jonwig] 24/5/2022 18:43

The current FIT-CFD scheme encourages renewables investment and automatically prevents "excess profits". I don't see any way that a windfall tax could be imposed on a system such as that. As for GRID, it doesn't generate any power, but does help power distribution to be more efficient. Without battery storage, our electricity would be even more expensive. Mind, if this appalling government discovered such a move would be popular and win votes, I guess it could do it!