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Bluefield Solar Income Fund stock price falls despite strong first half
The Bluefield Solar Income Fund had a successful first half, with revenue increasing from £78.6m to £91.6m. Despite these strong results, the company’s stock price is below its expected level based on net asset value. Managing partner James Armstrong believes the company’s strong performance should be reflected in the stock price. He is confident in the company’s strategy of pre-determining prices and its ability to generate cash even after taking into account debt and levies.
How are they dealing with this?
Although there was a temporary disruption at one of the company’s factories, Armstrong said it did not have a significant impact on the stock price decline. He said the broader renewable energy sector was also facing a discount to net asset value. To address this, the company launched a share buyback program and partnered with the GLIL pension fund to sell certain assets and manage its development pipeline.
Armstrong highlighted that the company has received planning approval for solar and battery projects, which will contribute to future growth. There is also an option to sell these assets to a third party if the market remains closed. Despite this, Armstrong believes the company’s stock price should be closer to its net asset value, rather than at a discount. He points to recent solar deals that supported the company’s net asset value, indicating the current stock price is lower than it should be.
To put it more simply:
In conclusion, Bluefields Solar Income Fund did well in the first half of this year, but the stock price does not reflect the company’s performance. The company has taken steps to address this issue by initiating a stock buyback program and forming strategic partnerships. The company also has a solid project pipeline and strong business foundation. Mr. Armstrong believes that the company’s stock price should rise further to increase returns to shareholders.
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