Sunday, 16 March 2014

Thoughts on the Sustainable Portfolio: (Fri 28 Feb 14 to Fri 14 Mar 14)

Another month gone past and still, my Sustainable Portfolio is showing a positive return of +1%. While it declined slightly over the fortnight, it is still ever so slightly above breaking even. Just like last fortnight, the major reason why my Sustainable Portfolio is even showing positive return is due to above hundred percent return from the Good Energy Group and Versarien. Personally, I am not happy with extremely heavy reliance on two companies, but that is the nature of choosing the companies based entirely on the theme. The biggest impact on the return is the fall of 15% with Benchmark Holdings and to a lesser extent, a fall of 7% with Graphene NanochemThis weekend, I will be covering the following companies: Auhua Clean Energy, Benchmark Holdings, Bluefield Solar Income Fund, Eden Research, Greencoat UK Wind, Infinis Energy and The Renewables Infrastructure GroupThe table showing all company's returns can be found at the end of this post.

See you next weekend!

The share price of Auhua Clean Energy has not changed during the last fortnight, maintaining its return at -11%. The company finally announced that it entered into a Sale and Purchase agreement for the acquisition of the business of Ziolar and Taiwan Ziolar. In order to pay £2.7 million for the acquisition, 6,944,400 shares will be issued. However, the successful completion requires regulatory approvals so the company expecting the completion date would be on 30 Apr 14. So hopefully, they would actually meet that completion date. Only time will tell if the acquisition is worth it. At very least, the dilution is not that heavy, my holding will only diluted by slightly over 6%.

The share price of Benchmark Holdings has fallen by 15% during the last fortnight, damaging its return to -33%. Ever since I bought into this company, the share price has been on a downward trend, only time will tell on how far it will fall. Meanwhile, the company just had its Annual General Meeting, which passed all the resolution. It is only a matter of time, waiting for more news concerning this company.

As for Bluefield Solar Income Fund, the share price over the last fortnight has increased by 1%, slightly increasing the return to -3%. The most interesting issue for me for this company is that I received a scrip dividend circular. Considering that my aim for any excess cash or dividend was to reinvest back into the company, having scrip dividend is an excellent route to do that. So naturally, I signed the Scrip Dividend Mandate and sent it back to the company. According to the Scrip Dividend Circular, the Reference Share Price for 2013 Interim Dividend is 101.975p, this meant that with the holding of 522 shares which added up to 1044p, this meant I can expect ten Scrip Dividend Shares. So hopefully, it will boost the return of my investment in this company.

Over the last fortnight, Eden Research has fallen by 4%, reducing its return to -36%. The company announced that it made further progress in EU product approval. The Managing Director pointed out that it is the next important step toward the commercial launch of its first plant protection product across Europe. So hopefully, we will get more updates on the approvals of the product in several countries.

The share price of Greencoat UK Wind has increased slightly by 2%, improving its return to -2%. The company announced that it will release its annual results for the year 2013 on Mon 24 Mar 14. It is something to look forward to. It is, however a shame that it does not offer a scrip dividend.

Infinis Energy's share price has increased by 2%, boosting its return to -3%. It is only a matter of time before it pays a dividend which might make it a positive return. The company announced that from Mon 24 Mar, FTSE Group will include it as a constituent of FTSE 250 Index which is good news.

The Renewables Infrastructure Group's share price has declined slightly by 1%, which slightly reduced it return to -9%. Meanwhile, over the last fortnight, they released a scrip dividend circular, annual report and published the Prospectus for its C Shares. Needless to say, I signed and sent back the Scrip Dividend Mandate. As the reference share price is 101.85p and I hold 300 shares, this meant a dividend of 750p will be converted to seven Scrip Shares. As for the C Shares which is offered to me under one C Share for every four ordinary shares, I decided not to take the full entitlement which is 75 C Shares but 302 C Shares at the cost of £302 to use up almost all the excess cash. Usually, I will opt for specific amount but due to the nature of C Shares which will be converted to ordinary shares, it is difficult to figure out to what my percentage of the holding is. Therefore, I decided to opt for as much as I can afford, knowing that the amount I will get is more likely to be heavily reduced. Only time will tell I believe.

DATE ACE BMK BSIF EDEN GOOD GRPH UKW INFI TRIG VRS TOTAL
Fri 28 Feb 14 -11% -21% -4% -39% 136% -20% -3% -5% -8% 113% 3%
Mon 3 Mar 14 -11% -23% -3% -35% 136% -23% -3% -5% -8% 105% 2%
Tue 4 Mar 14 -11% -23% -3% -35% 136% -21% -2% -2% -8% 105% 2%
Wed 5 Mar 14 -11% -23% -3% -35% 136% -16% -2% -2% -8% 109% 3%
Thu 6 Mar 14 -11% -28% -3% -35% 136% -17% -1% -2% -8% 111% 3%
Fri 7 Mar 14 -11% -30% -3% -36% 136% -19% -2% -5% -8% 113% 2%
Mon 10 Mar 14 -11% -33% -4% -36% 136% -20% -2% -4% -8% 117% 2%
Tue 11 Mar 14 -11% -33% -3% -36% 136% -21% -2% -4% -8% 118% 2%
Wed 12 Mar 14 -11% -33% -3% -38% 136% -23% -2% -2% -8% 117% 2%
Thu 13 Mar 14 -11% -34% -3% -36% 134% -21% -2% -3% -8% 116% 2%
Fri 14 Mar 14 -11% -33% -3% -36% 134% -26% -2% -3% -9% 109% 1%

Saturday, 1 March 2014

Thoughts on the Sustainable Portfolio: (Fri 21 Feb 14 to Fri 28 Feb 14)

The Sustainable Portfolio's return decreased slightly to +3% from +4%. Compared to the earlier weeks, most companies' share prices has fallen over all with only Graphene Nanochem showing an increase of 3%. This week, I will be covering Bluefield Solar Income Fund and The Renewables Infrastructure Group. The table showing all company's returns can be found at the end of this post.

See you next weekend!

Bluefield Solar Income Fund has fallen slightly by 2%. This share price fall decreased the return to -4%. Meanwhile, the fund announced its first half yearly report on Fri 28 Feb 14 in which they reported £965,000 loss due to the operating expenses of £1,269,000. Almost half of the operating expenses is due to investment advisory and administration fees. However, in the future, the accounts should be able to take into account of any fair value movements of underlying assets.

The Renewables Infrastructure Group has not changed during the week, thus its return is still holding at -8%. It announced their annual results on Wed 26 Feb 14. The profit before tax was £10.3 million meaning that the earnings per share is 3.4 pence. It is good to notice that the liabilities are virtually non existent at the moment. The board also appointed Klaus Hammer as a new independent Director. The fund accounts are quite different from what I am used to on company accounts. But I will improve my understanding of the funds' annual reports.

DATE ACE BMK BSIF EDEN GOOD GRPH UKW INFI TRIG VRS TOTAL
Fri 21 Feb 14 -10% -17% -2% -38% 136% -23% -3% -0% -8% 116% 4%
Mon 24 Feb 14 -10% -17% -2% -38% 136% -22% -3% -1% -8% 120% 5%
Tue 25 Feb 14 -10% -17% -1% -38% 136% -22% -3% -1% -8% 114% 4%
Wed 26 Feb 14 -11% -18% -2% -38% 136% -20% -3% -2% -8% 113% 4%
Thu 27 Feb 14 -11% -20% -2% -38% 136% -19% -3% -5% -8% 113% 4%
Fri 28 Feb 14 -11% -21% -4% -39% 136% -20% -3% -5% -8% 113% 3%


Sunday, 23 February 2014

Thoughts on the Sustainable Portfolio: (Fri 14 Feb 14 to Fri 21 Feb 14)

The Sustainable Portfolio's return increased slightly to +4% from +3%. While most companies' returns fell over the week, they was mostly balanced out by 15% increase in share price of Good Energy Group. This week, I will be covering Auhua Clean Energy, Benchmark Holdings, Bluefield Solar Income Fund, The Renewables Infrastructure Group and Versarien. The table showing all company's returns can be found at the end of the post.

Auhua Clean Energy's share price fell by 8% over the week, reducing its return from -3% to -10%. This is most likely due to the Result of  the Extraordinary General Meeting held on Thu 20 Feb 14. It is a foregone conclusion as the directors themselves does hold sufficient shares to pass any resolutions they wishes. Hopefully they will certainly acquire Taiwan Ziolar Technology Co. Ltd and Ziolar Pte Ltd by Sat 1 Mar 14. Just a matter of waiting for the announcement of its full year results by the end of April 14 as well, the upcoming potential maiden dividend. My personal opinion that the amount of dividend is likely to be small.

Benchmark Holdings's share price did not change during the week, maintaining its return of -17%. It made an announcement that it purchased aquaculture vaccine and development assets from an animal health company for $3 million. It also includes a number of developed and partially developed vaccines, seed stocks, isolates and vaccine technologies which will advance its own aquaculture research programmes. Hopefully, the company will be able to make good use of such assets in its Research and Development.

Bluefield Solar Income Fund's share price increased slightly during the week, but not enough to change its return of -2%. The last week was eventful for this fund. It announced that it made another acquisition, a large scale solar plant located north of Swindon costing £21 million. However, as the fund has insufficient capital to pay for it, it is going to raise £13 million by placing up to 13,028,999 shares which will be due to be admitted on Mon 3 Mar 14.  A few days later, it was announced that the placing was successful and oversubscribed. My holding will be diluted by 10%. The offer price per share where I am willing to buy more shares have dropped from 50.82p to 33.88p. However, they also declared the interim dividend of 2p per share and more importantly, the shareholders can elect to receive new shares instead of cash dividend which I will take full advantage of.

The Renewables Infrastructure Group's share price decreased slightly during the week, but not enough to change its return of -8%. It is interesting to note that Bluefield Solar Income Fund and The Renewables Infrastructure Group are willing to offer a scrip dividend but not Greencoat UK Wind. Ideally, Greencoat UK Wind should offer a scrip dividend as well. Anyway, the fund made an announcement that there is an agreement with both Royal Bank of Scotland and National Australia Bank for three year revolving acquisition facility for up to £80 million. There is no doubt we will have to issue even more shares to pay off these debts as well. I will look forward to the arrival of the forms required to elect for scrip dividend.

Versarien's share price decreased slightly during the week, causing its return to fall to +116%. However, it dropped much lower to +93% return as Murray-Smith, sold fourteen million shares, but the share price recovered once Henderson Global Investors was announced as the buyer of fourteen million shares.

DATE ACE BMK BSIF EDEN GOOD GRPH UKW INFI TRIG VRS TOTAL
Fri 14 Feb 14 -3% -17% -2% -38% 104% -19% -6% 0% -8% 126% 3%
Mon 17 Feb 14 -3% -17% -3% -38% 104% -18% -6% 1% -8% 101% 1%
Tue 18 Feb 14 -3% -17% -2% -38% 111% -18% -6% 1% -7% 93% 1%
Wed 19 Feb 14 -7% -17% -2% -38% 120% -21% -6% 0% -8% 109% 3%
Thu 20 Feb 14 -10% -17% -2% -38% 136% -23% -6% 1% -8% 111% 4%
Fri 21 Feb 14 -10% -17% -2% -38% 136% -23% -3% -0% -8% 116% 4%

Saturday, 15 February 2014

Thoughts on the Sustainable Portfolio: (Fri 7 Feb 14 to Fri 14 Feb 14)

The Sustainable Portfolio's return change slightly over the last week. The largest positive influence is Versarien with 4% increase although this is balanced by the 3% fall for Benchmark Holdings. So the return for the Sustainable Portfolio is still  +3%. I will be covering Benchmark Holdings, Good Energy Group, Infinis Energy and The Renewables Infrastructure Group.

Benchmark Holdings' share price has fallen by 3% over the last week, making the return of -17%. The Annual Report for the year 2013 and the Notice of the Annual General Meeting have been posted to the shareholders. Looking at the Notice of the Annual General Meeting, the first nine resolutions are standard, dealing with the annual report, auditors and election of directors. The tenth resolution deal with the authority to allot shares or grant subscription or conversion rights, it is pleasing to note that while they want the authority to issue up to two third of the issued share capital, a third of the issued share capital is reserved only for right issues. So potentially, there could be a 1 for 3 right issue in the future. The eleventh resolution deal with dis-application of pre-emption rights and finally, the twelfth resolution deal with the authority to allow the company to buy back up to 13,697,710 shares (or 10% of the issued share capital) if its Directors believe that there are likely a beneficial impact on earnings per ordinary share.

As it is a company that considered itself as ethical company with strategy and operations guided by an explicit policy based on ethics, environment and economics, this is a company worth keeping an eye on. Meanwhile, my belief that I bought at the peak seems to be confirmed as the return is at -17% which make it third worst performing company at the moment.

Good Energy Group's share price has risen by 3% over the last week, making the return of +104. The company announced its trading update for the year ended 2013 marking a positive progress in the number of electricity and gas customers. There are also significant positive developments for the operating assets with Delabode Wind Farm's power generation exceeding expectations and the Hampole Wind Farm will be commissioned by April 2014. We will get its preliminary results in early April 2014. It is something to look forward to and wonder if they will raise the dividends, or start offering scrip dividend or even both!

Infinis Energy's share price has declined slightly by 1% over the last week, barely breaking even. The company released its interim management statement which basically saying all three businesses, landfill gas, onshore wind and hydro are performing consistent with management's expectations. Financially, the company remains strong and on track to deliver dividends to its shareholder. The debts on the other hand is at £560 million so it is still considerable amount to bear in mind.

The Renewables Infrastructure Group's share price has increased slightly by 1% over the last week, improving its return to -8%. The only announcement from this company during the last week is about Interim Dividend. The interim dividend is 2.5p per share so this meant a dividend of £7.50 will be paid out on 31 Mar 14. This is even better as they also announce that they will offer a scrip dividend as well. The final results for the year will be reported on Wed 26 Feb 14.

DATE ACE BMK BSIF EDEN GOOD GRPH UKW INFI TRIG VRS TOTAL
Fri 7 Feb 14 -3% -14% -3% -38% 99% -19% -5% 1% -9% 116% 3%
Mon 10 Feb 14 -3% -14% -3% -36% 99% -18% -6% 1% -8% 115% 3%
Tue 11 Feb 14 -3% -14% -2% -36% 99% -18% -6% 1% -9% 118% 3%
Wed 12 Feb 14 -3% -14% -2% -38% 104% -19% -6% 2% -8% 126% 4%
Thu 13 Feb 14 -3% -18% -2% -38% 104% -17% -6% 1% -8% 126% 4%
Fri 14 Feb 14 -3% -17% -2% -38% 104% -19% -6% 0% -8% 126% 3%