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6.3¢ new energy solar limited

Insanely cheap, page-37

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Michaelirish

24,133 Posts.

413

25/04/20

10:38

Post #: 44249218
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Originally posted by ValueSearch: ↑

To summarise, NEW is probably only worth $1 and can support a dividend of 5c. So it is fairly valued and not at a discount. I've thought that for a while.
Issues as I see them
* Fee - too much fees paid to the managers
* Interest - too much interest paid on debt, 4.2% on USD debt is way too high in this environment
* Debt - too much debt. 60% leverage is too much in this environment. Compare with other stocks.
* Tax Credits - in 5 years these run out and then NEW will receive the income that their partners are getting now.

Once all these issues are resolved then the stock will re-rate.

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The NTA or NAV is meant to be the guide to value.

NEW has a credibility problem that relates to the activity of Mr Alan Dixon. Before then it traded near NTA

NEW Price at posting: $1.04 Sentiment: Hold Disclosure: Held
3 Upvote

0 Great analysis

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