Hi JCoure, apologies if I misinterpreted your sentiment and...

Hi JCoure, apologies if I misinterpreted your sentiment and disclosure (which was previously "sell" and "none"). Another reason why HC should have "short sell" as a disclosure option.

Michael nicely explained a key reason why DRPs are low take-up by some people. I suspect that most instos also avoid DRPs on the belief that they can time their investing better, even when the stock is undervalued. Another reason why TCL's DRP take-up has been relatively low. But I recall that take-ups in other stocks I hold are mostly below 20%. The highest I know of is GOZ (which I also hold) where 2/3 of distributions are turned into DRPs. But the catch there is that GOZ's South African parent accounts for the bulk of that DRP.

As for TCL's prospects: The firm has several projects in the works, so growth prospects look promising. But it has also risen quite a bit in less than 2 years, so might be close to full value (or at least is in consolidation phase). Difficult to valuate with P/E, PEG, etc because of nature of the business (capital mgt, premium for steady income, etc). Supers love it for the steady income, quality mgt, monopoly market, and potential growth.

The US business is quite small, but notice recent chatter about more US roads going private in future. TCL is trying to role model the benefits of this shift. time will tell.

Overall, I value TCL for the potential revenue (and cash flow) growth of its projects along with a steady income stream. But, of course, please DYOR.