True, and the extent to which NAV may fall with distributions (ie effectively paying some of divi out of capital).
But - there's a lot in the price of both, and there's the safety net of being able to cut the divi if debt got out of hand, eg if SEIT wasn't able to make sales due to, perhaps, a Trump-induced GFC.
Not expecting a divi cut, but there's a route out of any cash crunch, should one occur. |
So long as they keep paying the dividends ! |
Some decent points in above note. I thought great value at 60p. Below 50p an absolute bargain along with NESF Below 74p. Buying both at current prices gives an average yield above 12.6% both paying quarterly. |
Edison note: |
Yes, I agree. |
I'm well aware of your presence there, which is why I suggested it! I've been there for ever (more or less) but yesterday's announcement was a game-changer, so I've been favouring that over this, at least for a while. |
Off topic, but I've been there for years - from 22p to over £6 - latest purchase was yesterday and looking to add a few more.
I'm at a point where I want the majority of my pot to produce a decent income. |
My answer is - you would have done far better at ITM! And still might... |
loglorry -:-)
It was rhetorical really - I will be adding (again). |
I've been adding (yesterday) Skinny. I'm not sure that's me telling you to add or not to add ;-) |
Can someone tell me why I shouldn't add more at this level.
free stock charts from uk.advfn.com |
Probably see 50p before next Ex Dividend day. A large growing Dividend is desirable during a period of low growth. Who knows if the 43p low will be retested again following mext ex div. |
We have been in a downtrend channel for 9 months or so, just nudging the top of this channel right now. Will see a breakout or are we heading for the 40’s? |
Some nice swish videos in there. Highlights the stable revenue streams on long term contracts which is perhaps overlooked. Still too much gearing and Oynx will struggle to import new solar capacity. I'm sure they are also exposed to a general US downturn. |
Edison report. |
Accurate choice of word.
"The US is going to tariff everything from China except the 99% of what they import".
Was it worth it, Donald? |
Onyx's business is, in as much as their customers would tend to take the subsidy to develop. Canadian Solar manufactures in the US and plenty of places outside of China. Oil prices don't help, but shale will keep a bottom under the market as new projects fail to replace the steep decline of existing wells, and that also reduces the gas supply. That said roof top solar on big sheds is a no brainer in almost all economic conditions, with a rapid pay back and provides security of supply.
Edit, sorry, meant to concur with CC2014 that recession is the risk to acknowledge rather than renewable subsidy withdrawal or fossil fuel prices. |
You make no mention of the fact that SEIT is not reliant on government clean energy subsidies like most others in the sector. |
Had a video conference this am with SEIT and Was. We went through the top six assets in detail, now about 87% of total assets.
SEIT is clearly uncomfortably geared but the assets look good to us with stable long term income streams derived from solid tangible assets. Decent upside potential.
Tariffs are a concern for Onyx but they have been sourcing domestically and have stocked up re Chinese imports.
Unlike other Renewables, most of SEIT's assets have an indefinite lifetime. ie freeholds, plant and growing businesses.
IMO it's only possible to properly elevate SEIT by talking to the company. |
Answering my own question in the interim presentation hxxps://www.seeitplc.com/wp-content/uploads/2024/12/SEEIT_Presentation_Sep24_FINAL.pdf on slide 11 it shows 1.1x cover AFTER paying the fund expenses.
However can I trust a presentation? I guess so but something nagging me still. |
 log - since it's been 3 hours without a reply for you I'll try. I think that's saying something about how when markets start falling PI's lose money and disappear.
I don't have a position in SEIT but I used to. It used to be my second biggest position and over 10% over my portfolio. I sold out in Feb/Mar when Trump starting kicking off about tariffs on Mexico and Canada. I sold nearly every equity position I had regardless of price. Some have proved to be amazing sales, some less so but on balance it worked out well.
I have been through the accounts and every presentation SEIT done multiple times with a fine toothcomb.
As far as I can work out the dividend is fully covered after payment of the fund expenses. I've spent hours looking at it and that's my view.
However, I'm only 90% sure on this and it's not because I don't trust my own ability to read the accounts, it's because some of the information is just a tiny bit more oblique than it needs to be. It's kind of like there is no red flag but there are too many amber ones. A nagging feeling in my gut.
Personally I wouldn't be too bothered about dividend cover though. I'd be more bothered about the impact of a possible recession in the US and the impact on SEIT's customers. I have no way to analyse this in any reasonable detail. Clearly the price reflects something I am missing (or maybe the share price is just wrong. It wouldn't be the first time) |
Re the "operational cash flow covers divi" statement. The divi was 34.1m (last half year) but the fund expenses were 5.2m so if you take out that its only 85% covered.
Have I got this wrong? |
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