Nextenergy Solar Share Discussion Threads

[tuftymatt] 26/5/2022 08:00

It's a story being updated by the looks of it as the paragraph below isn't as positive now as it was over an hour ago.

"But proposals to tax income from other electricity producers, such as some older windfarms and nuclear plants which have also seen windfall gains, have been shelved. And companies that increase investment in the UK could earn a discount on the additional tax."

Maybe common sense won’t prevail 😩

[woodhawk] 26/5/2022 07:51

I do hope that you're right, tuftymatt.... but I don't see any news that the 'windfall tax being aimed now JUST at oil and gas companies". Any links to confirmation of that?

[tuftymatt] 26/5/2022 06:58

Looks like this should bounce today based on the news of the windfall tax being aimed now at just oil and gas companies. Common sense prevails as expected.

[norry2] 25/5/2022 17:19

Maybe more undervalued to start with

[cc2014] 25/5/2022 16:48

#an informed and not well researched guess.

The FT article from yesterday IIRC mentioned wind specifically, so I guess somewhere along the line some think the Chancellor will tax wind but perhaps not solar. Ridiculous I know but that's the best I can come up with.

FSFL and NESF have come back better than the rest

[chucko1] 25/5/2022 16:10

NESF basically off just 1% from its pre-FT-article price. About right. Not the same recovery from UKW and I am not sure why at this stage.

[marktime1231] 25/5/2022 12:05

Amused by the "tilting at windfalls" headline until I saw this



The FT plagiarising ???? or just recycling a clever phrase.

Pleased to see the sector bouncing back strongly as fears subside, a bit early to be having a party though. Oh dear, don't mention party.

[woodhawk] 25/5/2022 10:42

From the Independent this morning:

"The chief executive of energy company SSE has said he does not believe the government will introduce a windfall tax.

The Times and The Daily Telegraph reported this morning that the measures could be introduced in day.

But Alistair Phillips-Davies told BBC Radio 4's Today programme: "I don't think this Government is going to impose a windfall tax on successful sectors that are delivering for the UK and creating jobs and making sure that we avoid these crises in the future by bringing in lower-cost energy from indigenous sources."

[williamcooper104] 25/5/2022 02:26

UK energy: tilting at windfalls puts investment at risk https://on.ft.com/3MMqzVH

[c3479z] 24/5/2022 16:43

Many will suffer in the autumn if energy prices remain elevated, listened to Radio 4 this morning 'you and yours', people already struggling very badly to heat water for a shower in their homes or keep their meter payments up,
pressure on gov't will be intolerable,
windfall tax on energy not the answer, IMO, even if the electorate and the usual left wing suspects clamouring for one - after all the gov't did not step in when the price of oil was virtually 0 two years ago, investment plans will be disrupted, pension funds will lose out,
so, how to address the problem ? more borrowing at central gov't that's as long as international investors will buy our gilts!
In the end, and sad to say, people will have to bear the brunt of it and take most of the hit on the chin, cut down on energy usage, drive less and economise where they can.
Have investments in NESF TRIG UKW etc so may be talking my own book...

[woodhawk] 24/5/2022 15:55

SSE also downgraded by broker earlier - that probably added to misery there.

[marktime1231] 24/5/2022 15:44

Doing some similar sums to llef, the drop to 106p was overdone based on what the hit might be on current NAV and future NAV growth outlook of a one-off 10-15% premium tax on UK profit. Sharing the disappointment, topping up just before ex-div at 111p now looks expensive. Not ready to add again at 108p but well done if you timed the low earlier. Other stocks in the renewables sector looking very good value still, especially UKW under 150p but the income is not as strong there. SSE must be furious.

[woodhawk] 24/5/2022 13:43

Sunak asked for a 'plan' - that doesn't mean it's even viable or that it would ever be actioned. My take is that it's a panicky temporary sop to the mob braying for a windfall tax. Like EC2, I'll happily take this as a buying opportunity as I was going to at a higher price anyway. The 'Windfall tax' idiots probably don't even realise that their pensions might take a hit too. Bet most don't even consider that.

[ec2] 24/5/2022 13:11

Treat this as a buying opportunity. There is absolutely no benefit in the government alienating investors in this space. Renewables are the solution not the problem. Regardless this is a long duration asset priced on various longterm assumptions. As the very cautious nature of these assumptions becomes increasingly apparent through their materialisation into actuals, the share price and dividend flow benefit to the upside immensely.

[coxsmn] 24/5/2022 13:06

Yes, alternatives are worse and would be the final nail in the coffin.

[chucko1] 24/5/2022 13:03

"And you're right, Johnson & his cabinet of talent-free crawlers are the most clueless bunch of cretins in living memory." - earlier from Woodhawk.

Yes, how can one forcefully argue anything different? And yet, consider the alternatives. It's frightening.

[woodhawk] 24/5/2022 12:36

Yes, but when he U-turns, and there is no Windfall tax on renewables the share price will rocket and it will be business as usual... LOL.

[cc2014] 24/5/2022 12:24

Dear Mr. Sunak.

In order to invest in new renewable energy we raise new equity capital by issuing new shares at a discount to the NAV. The industry has been successfully doing this for years.

Based on your leaked proposal of today you have destroyed our share price such that this is no longer possible as the share price is now significantly below NAV.

An own goal of epic proportions.

[woodhawk] 24/5/2022 12:09

It is usually the patient who are rewarded - at the expense of the blind panic merchants.

[gbcol] 24/5/2022 11:59

Yes, coincidentally I also topped up here and in UKW and TRIG too this morning (those seemed to have the biggest initial falls). Clearly an overreaction and hence a buying opportunity IMO.

I’ve been adding NESF in recent days anyway, so slightly irritating that I could have got those cheaper but all good for the medium/long term.

[tuftymatt] 24/5/2022 11:44

Well done CC2014.
I got some more UKW earlier as I see this as a market overreaction to an issue that won't come to pass in the companies mentioned.

[woodhawk] 24/5/2022 11:43

A very sensible reaction, in my view, CC2014, I've topped up here - glad I waited until this morning. And you're right, Johnson & his cabinet of talent-free crawlers are the most clueless bunch of cretins in living memory.