Sdcl Energy Efficiency I... Share Discussion Threads

[badtime] 04/12/2024 15:19

Dipped toe in at 50p ..now wish I had put my foot in lol

[stemis] 04/12/2024 15:06

The issue isn't really about the quality of the businesses (which non of us really know) but valuation. Onyx 'may' be a great business but does >40 x ebitda represent a reasonable valuation for a business which "During H1 2024 their operational assets performed below budget due to a combination of lower solar resource and technical underperformance at some of the sites"?

The market clearly believes not.

[cc2014] 04/12/2024 13:26

The way I see it is that it sometimes helps to stand back and look at the investments

Take Onyx. The actual issue here is that it's too successful and SEIT cannot provide the capital to meet all the work available. What a problem to have. SEIT made it clear in the presentation they have no obligations to provide additional capital. A co-investor would be the best route.

Next the steel plant to which SEIT provides energy recovery. This industry like a number of the other dirty industries on the old Eastman Kodak business park (and newer energy intensive customers) is going to be a big beneficiary of Trump tariffs. If the US imports less steel by definition that's good for SEIT's tenants and thus SEIT.

I could go on.


It is my opinion that this trust is misunderstood by those who cannot be bothered to find out what it actually does and have some information from a data provider in front of them and that's all.

I for one am happy to take the opposite side of the trade from them. Of course as Chucko says it's about timing. If you stupid enough to by buying above 100p, then you are probably stupid enough to sell at 50p, which is what it seems Rathbones are doing

[lonrho] 04/12/2024 12:55

Profit before tax is shown as £35.1 million with no tax which is approximately equal to the dividend. Guess ebitda of subsidiaries may be after some charges paid to the holding company.Otherwise its difficult to understand.

[chucko1] 04/12/2024 12:31

The way I see it is - is the company (IT) of adequate quality and prospects to sustain the current level of payout? If so, no matter the period of transient market value disruption, for whatever reason (even if Rathbones and assorted oldies are selling for two more years), it seems to represent yet another opportunity of mild enrichment for some investors versus the poor returns likely to be suffered by others.

Same as GABI and EPIC and API, and likely ASLI and SOHO and NESF. With SLFX being the most notable of the lot, though dearly departed as of Dec 27th 2024.

The problem, as ever, is when one bought at, for instance, IPO and ignored the key risk factor which was not the underlying premise of the investment, but the importance of rates. It seems that this problem is still weighing heavily on many investors.

[cc2014] 04/12/2024 12:29

In my experience hpcg the thing that differentiates those that are successful at investing is whether they read and understand the balance sheet.

[stemis] 04/12/2024 12:18

The problem is that the investments only produced ebitda of £37m in half year. Deduct (edit) fund expenses of £5.2m, depreciation, interest on £524m and any tax and do you think the Group was actually even profitable at a consolidated level, let alone generating enough profit to cover £34.3m of dividend payments?

[wshak] 04/12/2024 12:07

Hi hpcg,

I asked the question on why they wouldn't provide accounts for each of their subsidiary businesses as they keep going on about disclosure being important.

The answer was very poor, just read from a pre-prepared statement about NAV being the most important thing.

I have emailed them to ask for accounts to be published on their website but didn't even receive a reply.

That kind of attitude might well explain why the shares are where they are.

I hold quite a few shares regardless, and would buy more if they weren't so reticent in communicating properly.

It's not as if there aren't other investments out there to compete with in the REIT and IT sector.

[hpcg] 04/12/2024 11:38

Page 10 of the interim report goes into the debt, another thing that potential investors point to as reasons for selling that make them afraid to buy. I won't re-post the words here, those that can't be bothered to look at the company reports won't be able to do anything with the information anyway.

[hpcg] 04/12/2024 11:21

I remain perplexed when investors here keep looking for the boogy man that "they" know about and are selling down because of. Yes, as a private company we don't have direct access to Red Rochester's accounts, but its an industrial estate on the Great Lakes that also provides CHP services powered by very cheap domestic gas. The last annual report has a lot of information across project, which given how few people actually read them is as much in-depth research as is going on.

Spectoacc wrote about extensively about flows earlier, which I won't bother repeating. I think we should give more credence to net withdrawals from a wealthy generation versus fewer inflows from the much poorer ones coming along behind. I think we'll see more pressure on the share price, especially ex-div and I for one will be adding.

[parob] 04/12/2024 11:10

Well Rathbones may still be selling (noticed a 500K sale earlier) but there's also a large buyer (2 X 250K buys now showing).

[return_of_the_apeman] 04/12/2024 10:46

That was my question and I specifically mentioned Rathbones. So the answer was about Rathbones. I very much doubt Rathbones would be selling if the whole sector was not unloved at the moment. They were keen to stress there are interested buyers out there at the subsidiary level which we can expect news on

[2wild] 04/12/2024 10:43

For anybody buying recently Rathbones pain is our game. The benefits of self invested SIPP and ISAs are clearly demonstrated in situations like this, where you can pick up several investment trusts in out of favor sectors on massive discounts and huge dividend yields.

[cc2014] 04/12/2024 10:36

I listened to the presentation but there is nothing really to report. Nothing has really changed since and there was little new information.

They were asked near the end about why some shareholders were selling out. Response was it was largely unrelated to them.

[stargazerspark] 04/12/2024 09:56

Suspect with many IFAs it's been too long selling the story to clients.
they likely have <<1% in each portfolio so it just becomes noise.
And this is a hard share to explain what it does hence "why did it drop 50%?" "OK, because you didn't understand the business!" doesn't retain clients.

[brucie5] 04/12/2024 09:37

One wonders why Rathbones are selling. Client redemptions? They must be fools, or know something that we do not.

[cc2014] 04/12/2024 09:05

I'm happy enough with the RNS. There was no new news to explain the fall in the share price

[2wild] 04/12/2024 08:15

So NAV marginally increased to 90.6p in 3M, unchanged in 1 year. Yet share prices down 26% from 12 month high😀. At 52p annual dividend yield is 12.15%. As shares go Ex Dividend next week, that's 15.19% cash return in 53 weeks.

[panshanger1] 04/12/2024 07:56

Likelihood Rathbones will still be selling more but still inclined to add a few down here Ex div next week for 1.58

[parob] 04/12/2024 07:52

"We are strongly of the view that SEEIT's share price does not reflect the value of its investments nor the cashflows derived from them. To this end, the Board and Manager remain focused on addressing the share price discount by supporting the marketability and liquidity of the Company's shares."

[parob] 04/12/2024 07:52

NAV per share of 90.6p as at 30 September 2024 (31 March 2024: 90.5p; 30 September 2023: 90.6p)On 30th Sept last year share price was about 67p so some catching up to do just to get there.Looks like bottom went in a few days ago.

[spectoacc] 04/12/2024 07:22

It does, but mildly disappointed by:

"..The Board and Manager remain focused on addressing the share price discount by.... supporting the marketability and liquidity of the Company's shares."

What, by telling their mates? Paying for some Edison research? Posting on ADVFN?

[2wild] 03/12/2024 12:11

Market seems to have priced in something horrendous during last several weeks. Hopefully not insider trading. Could get a decent relief rally tomorrow. Medium to long-term interest rate seems to have turned. UK 5 Year government bonds now down to 4.07%, having nudged 4.5% following the budget.

[jitters3] 03/12/2024 11:44

Half Year results out tomorrow I believe