Vivo Energy Share Discussion Threads

[dickbush] 03/11/2020 15:47

"9,408,591 shares acquired at nil cost, following receipt of a distribution in specie from Helios Investors, L.P. "

The Director of Vivo is one of the two founders of Helios which in turn was one of the two companies that created Vivo following the deal with Shell. It doesn't suggest to me that more shares have been issued. Possibly tax related. Nice work if you can get it, though.

[robsy2] 09/9/2020 08:25

It would appear so, but I have just sold mine for a small profit. It looks interesting but I don't understand or like the last RNS I saw yesterday where a director is gifted a load of shares. I can't even see that he is a director, so I'm out.

[jpuff] 07/9/2020 20:15

Are these value at 75p. Just came across them

[robsy2] 17/6/2020 11:45

This looks like a decent outfit. I like the idea of pan African companies that can be part of the development of infrastructure across Africa.VVO fits that as does AAF (Telco) and HTWS ( Telco towers).All look fairly vital low risk safe investments.

[robsy2] 07/4/2020 09:49

I've bought a few. It seems under the radar. The share price has fallen steadily since flotation but to my eyes the results have been better than the share price would suggest. I picked up on it in Sharepad where it has an conscensus BUY recommendation from 9 analysts .They can't all be wrong, Can they? Or all be in someones pocket?There wouldn't be room! IC also covers it and is broadly supportive. They have big serious cornerstone investors with deep experience in Africa. They sell Shell products and have them as partners as well.

The business seems fairly risk free, a steady plodding business that should have a decent valuation supported by decent dividendds. It doesn't have either at the moment.They run thousands of petrol stations and in most cases the people who run the stations take on the operational challenges involved rather like franchisees. They have solid institutional investors and operate in a growth market. It is nearly dividend paying,the website and corporate video both look good as do the accounts.

Bear Points- wafer thin margins, Africa = higher risk? the share price tells us that it has no real support in the market place so what needs to happen to get investors excited?

Threats:Corona virus ? Who knows? It will be a negative but perhaps less so than in more developed countries,an ongoing situation where some areas are shutting down and restricting travel,especially the marine business which is small but affected .
Recession?again, no idea but in general the economies they serve are growing so there is a structural tailwind there.
Falling oil prices. This is an interesting one , reading the accounts etc they indicate that in the vast majority of the jurisdictions they work in, the pump prices are regulated with fixed margins for operators so profits are not that correlated to oil prices.one way or the other.

On balance, it looks cheap enough to be worth a punt.
It is a very cash generative business, it is a utility type business, so low risk . they have good business partners with sizeable stakes , a strong market position, it makes good returns on capital , promises a 30% dividend payout ratio, first one pending confirmation,and has debt but is repaying that quite rapidly with the strong cashflow.

The share price is beaten down badly so it could be cheap now.

[robsy2] 07/4/2020 09:20

Hello
I have created a thread.A first for me.
Let's see if anyone shows up!

[robsy2] 07/4/2020 09:18

!FOLLOWFEED


hxxps://investors.vivoenergy.com/