High Yield Hunt and thoughts on comparitives
Quote:
Originally Posted by
BlackPeter
There might be some resistance though around $5.20 ;);
I got to thinking, as any good dog does when looking for the next feed, what is a fair value given the well known risks and this profit downgrade.
I think I'd want 12.5% gross yield for all the risk and the knowledge this is in long term very, very gradual decline.
12.5% gross on 49 cents fully imputed = 68.06 cents gross implies $5.44 to get 12.5% gross, but heck, these things often overshoot so this dog is interested in having another bite at $5.20. Worked last year, a real treat :D
I think the unreliability and vulnerability of this one including regulatory risk and long term electric vehicle systemic headwinds is notable in its characteristics compared to the other 2 very high yielders I follow, AIR and HLG both of whom don't have the regulatory or other long term headwind issues and both of whom offer similar but more reliable yields and have a considerably longer and more reliable track record of paying them. That's why I'd want at least a 1% yield premium with this one, albeit that this sells what effectively amounts to a consumer staple product.
Then again, I got to thinking the other day in a kind of left field way, the way people use aircraft just like a bus these days and people have to buy clothes, maybe AIR and HLG have some element of being consumer staples about them too ?