Wind of Change
A deeply-discounted "event-in-waiting" situation offering a ~18% cash yield and ~60%+ upside.
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Value Situations is NOT investment advice and the author is not an investment advisor.
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Following last week’s article about where we are in markets, I’ve been following my own advice on what to do by seeking out overlooked, idiosyncratic equity situations that I believe should perform well regardless of the latest newsflow or whatever Donald Trump might tweet next.
In this issue of the newsletter, I present a new equity idea that I have also just added to the Value Sits Model Portfolio this morning.
This name is an overlooked and very out-of-favour European-listed renewable energy stock trading at a record ~30% discount to NAV, and is an “event-in-waiting” situation in my view, being a plausible a takeover or activist target, and a possible break-up situation following recent asset disposals completed at a premium to book value.
Furthermore, this name offers a very strong yield (~18% cash yield and a 9%+ dividend yield) supported by largely contracted cash-flows, meaning that shareholders are being well compensated to wait for a catalyst to eventually materialise.
This stock is…