Ft Tre Discussion Threads

[elban] 16/5/2009 14:32

My logic is this:
(1) if the World goes into depression, TRE's investments may be of very low value - we are then just left with the cash (perhaps about 100p per share by this time). Thus, a small profit.
(2) If Asia etc boom then the carbon credits and other assets will be worth loads. The share price will then rise to many multiples of its present value.

The most likely scenario is somewhere between the two.

[wormcatcher] 14/5/2009 09:13

Tis an intersting scenario is it not.

[elban] 13/5/2009 17:34

2012: I expect that they will close the fund, but open another one. This will give investors a chance to get out at the then present value (ie cash + value of assets) or to move into the second (probably again closed) fund. Just how this will be achieved, I don't know.

If the second fund is setup in advance then it could buy (or agree to buy at the end date) most of the assets of the first fund - without having any depressing effect on market values.

This process removes the fear of a fund that is permanently priced at well below its asset value (which TRE presently is).

[jwe] 13/5/2009 16:41

wormcatcher-thanks again for your comments.There is a big transfer of stock taking place currently which looks like the buyer/s are gradually winning

[wormcatcher] 13/5/2009 13:55

jwe,
In many ways they are a trading company in that they effectively buy primary CERs by investment in renewable energy projects and then sell the CERs on the secondary market, hopefully benefitting from the difference in the prices. Also, they will hope that as it can take several years for the investment in projects to generate CERs that they can trade, the price of secondary CERs will increase thus increasing the return.
At some point, however, I assume they will have to 'Trade in' all their investments and sell them on the secondary market prior to the end of 2012.
What then? Will the cash be returned to share holders via a special dividend?
Hope that makes sense - happy for someone to put me straight.

[captain_crash_and_burn] 13/5/2009 13:44

Looks like we're in business finally :)

[jwe] 12/5/2009 16:29

wormcatcher-thank you for taking the trouble to reply.The attraction is that the company is sat on a pile of cash and assets which it paid under current market value and,perhaps,significantly so looking forward.However it seems that once these assets are disposed of there is no longer any company just assets.In effect the company does not seem to be a trading company and that is what i`m having a problem with.
With regards to the trades there is obviously at least one large buyer and seller who are currently having a tug of war

[captain_crash_and_burn] 12/5/2009 11:32

Some huge buys going through today, how is this not budging the sp, very odd.

[elban] 12/5/2009 09:23

Just bought another 5,000 - someone is confident, having bought 154,000 just before me.

[wormcatcher] 12/5/2009 07:25

Excerpt from the last report and accounts:
'The company was formed with the objective of giving investors long term exposure to the carbon price, both through capturing the arbitrage the Board anticipated between the primary and secondary markets for carbon credits and on the basis of a long term upward pricing view. It was the Board's belief that a strong first mover advantage existed for those willing to take, and able to manage risks in the primary market through the development of an extensive origination network and robust risk management process. A strong cash position is fundamantally important to execute this business model....'

Hopefully with a recovery in world economies, investment in the primary markets will improve. The thing that I don't entirely understand is that the company has a fixed life and is due to be wound up in 2012 - so how long term can the investments be in the primary market?

All I have time for at the moment - if you get a full copy of the report & accounts it makes for interesting reading.

[jwe] 11/5/2009 08:16

I`ve been attracted by this company because of its cash position and dividend policy and am looking to add them to my porfolio.However i`m struggling(as i`m sure others before me)to fully understand their business model.Anybody fancy a stab at a quick explanation?

[wormcatcher] 09/5/2009 10:23

I will thanks Captain - holding a few too many really - average 88p so not too far to go.

[captain_crash_and_burn] 08/5/2009 20:59

Welcome aboard, it may not be the most thrilling ride in the short term but going long i think we'll come good. Also the downside at this price is almost nill as they're around 80% cash backed at the moment. Some strength in the carbon market, better market sentiment and further updates of any sales should see this share rocket until then i hope the buys are enough to jolt us into action, i have to say you picked the most exciting day to join in 3 weeks notready.

Hope you enjoy your sunday roast in your freshly decorated kitchen worm, you must be holding a few if the divi was that much.

[notready] 08/5/2009 14:37

LOL!

I've just added another 12,000 shares, if that helps!

;-)

[elban] 08/5/2009 14:14

notready - I think that you must have a following - some big buy orders followed yours.

I reckon that this will rerate. I don't know what the assets are worth, but their present valuation of zero is clearly wrong.

[notready] 08/5/2009 08:47

Just joined you guys with 20k shares for starters.

;-)

[wormcatcher] 06/5/2009 14:29

Captain,
Yes got divi - paid for re-decorating the kitchen!

[captain_crash_and_burn] 06/5/2009 13:52

Yeah really suprising this isn't heading North we've had some decent buying with very little sells over the last couple of days and still no movement. Mcap is large so i understand shifting the price will take a fair few trades but still it should have moved a bit. Did you get your divi worm, think i bought in too late to get it.

[wormcatcher] 01/5/2009 13:16

Should be getting our first dividend payment today.
Carbon prices have recovered a bit recently and steady as she goes. Surprised this hasn't risen a bit more. Was going to top up but decided in heavily enough so went elsewhere.

[wormcatcher] 20/4/2009 14:10

Still here - waiting for my divi.
Not much to say about it at the moment - no intention to sell anything.

[captain_crash_and_burn] 20/4/2009 12:04

All gone a bit quiet here, everyone still in?
I've just got involved myself, seems cheap as chips at the mo so will hopefully move up a bit soon.

[philjeans] 30/3/2009 13:10

Continuing to perk up after the results - massive headroom here and completely undiscovered.

[jiopl] 27/3/2009 19:41

Good to see the share price up for a change!
Still a long term hold for me but its nice to have a dividend while we are waiting for the CER price to rise.
I will probably pick up a few more at these levels next time I get some cash.

[wormcatcher] 27/3/2009 13:34

Totally agree phil

[philjeans] 27/3/2009 13:10

The "loss" is a technicality in reality; cash generation is far more important.

Cash almost covers the market cap currently and the suggested annual div (which the chairman says is fully sustainable) of 4/5p per year provides a potential yield of approx 6%, with capital growth in for nothing.

Load up - Obama is very keen now on saving the planet.