Foresight solar

Why is it taking so long to buy some of this stock. (6hours and still pending)

It has a market cap of over £600mn.

It’s turnover at best is 5% monthly. It’s something I’m keeping an eye on as was planning on building a clean energy income portfolio.

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Thanks Dougal, just always presumed hundred million plus would process quickly

What’s your thoughts on buying it. I always like a bargain and have been meaning to do some digging on its returns from when it’s capital has been fully deployed.

It amongst others is on my list to review, but I like the fact that it has more capacity coming live in June 2022, and also deals with battery storage as well.

I’ve had buy orders pending for days previously on FSFL. I built most of my position whilst under £1 over the last couple of years.

They are constantly expanding their operations and stakes in solar farms. But they need to go harder into battery farm operations to avoid being left behind…. they only seem committed to dipping their toe in this market so far.

Looking at the historical share price…… this is extremely steady, however times are changing and electricity pricing long term looks like it’s going to increase until we reach a tipping point of finally moving enough generation away from gas assets. By which point in a few years I can see FSFL assets being in a very strong position - hopefully we can see some share price growth in the long term…… if they don’t have to keep raising that is!

The dividend is the main draw for me on this one and it’s now my highest payer in my portfolio. Compliments my UKW and TRIG holdings well and all quarterly payers.

If anyone else has any thoughts on this one I’d like to hear them……

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Whats the ticker on this? I see a few Foresight related listings. Thanks.

Foresight Solar Fund Ltd is listed under FSFL on the LSE.

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Having had some time to look into this:

Dividend cover is 1.1

Gearing is near 40%.

Effectively the gearing is funding the elevated dividend but that said with a current capacity of 846GW increasing to 1019GW once Sandridge(battery storage 25GW) and Spanish(125GW Solar) come online later this year I would hope they look to reduce debt and start to raise the capital value in line with inflation. The additional capacity should cover 2-3% NAV appreciation a year if they go down that route.

The only problem I have with this particular trust, is it’s use of leverage, and it’s low dividend cover. That should reduce once the Ozzy assets start producing, Spanish assets come online and they venture more into battery storage(with more funding likely needed).

For comparison BSIF has leverage of 37%.

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What is the easiest way to see if a company constantly dilutes.

Look for equity raise on RNS?
Yahoo tell you outstanding shares per year?

I can never find a sound way to look for dilution over a few years.

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Annual accounts would be the answer. Check the shares in issue.

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