Walkeia wrote:Seconded, I don't see a reverse to the investment theme but high premiums should result in on-going share offerings as managers grow AUM. As a consequence in October I reduced my TRIG and GRP and went into GCP infrastructure which is more debt heavy (albeit 60% is against renewable projects).
Hi Walkeia, Well I confess I think all of the focus on net zero by 2050 etc. is just going to increase the interest in renewables not reduce it. Witness the success if the Octopus IPO early in a December which was hugely oversubscribed. The government are going to want this stuff done but they won’t want to stump up the money I’m guessing, so the existing players should all do very well is my bet FWIW.
So you moved from TRIG (~20% premium) and GRP (~14% premium) to GCP (~19% premium) then ?. Might have been better to buy the Octopus IPO mightn't it ?. Just a thought.
All of the renewables got a bit of a lift with the election result and TRIG an even further lift from the InfraRed Capital Partners deal. I think that holders are most likely to sell if the price gets so high that the dividend yield gets significantly reduced. I recently dumped UKW for that reason and bought some more NESF with the proceeds. I confess I can’t see the UKW price going much beyond 150....could be wrong but that’s my view.
I agree that we may see more share issuance to fund further expansion of the businesses. And yes probably at at discount to the current share price. But that hasn’t worked out too badly for holders so far has it....
All the best anyway.
Pref