The latest Investing Matters Podcast episode with multi-award-winning fund manager and international bestselling author Lee Freeman-Shor has just been released. Listen here.
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Does anyone out there understand why the SP has dropped so much?
TIA. DH
Damonhill
I can only assume it's people selling their shares for any number of reasons such as seeing better growth elsewhere or they basically just want out. The fund seemed very happy to RNS splashing cash here there and everywhere buying up plots and woodlands, but there's no indication of how the revenue is going to be generated anytime soon.
Sticking trees in the ground means it's many years before they can be used for sellable timber, and the plots already purchased don't seem to be front and centre regarding communication of how they are to be monetised. All in all, it appears to be yet another 'Eco virtue signalling' fund that offers nothing but promises of long dated future revenues, while spraying toxic soil destructive chemicals all over their plots, just like the government and councils do in our cities.
It is on its way to dropping below the £100 million market capitalisation and if/when that happens, I suspect further sells will occur. The management are completely silent, and there's no plans in place or marketing (Q & As, videos, interviews etc) to attract investment into the fund. The volume is mainly tiny buys and a few larger sells most days, and the volume itself is incredibly low so the appetite to invest is not there.
Investors need a path to revenue, the fund manager has decided not to share one.
All the best
Tygra,
Not sure if you've listened to this recent UK Investor Magazine interview with a manager of the trust:
https://ukinvestormagazine.co.uk/capital-appreciation-a-compelling-discount-and-uncorrelated-diversification-with-foresight-sustainable-forestry/
It's about half an hour long, so they do cover quite a lot. He does indicate how revenue might come in from forests after being planted for a couple of years. As I recall, he doesn't say whether those funds will be reinvested or distributed as dividends, or both!
Tygra
Thank you for your insite
Regards DH
Telf
Thanks, no I didn't see that so nice one for pointing it out. Agreed, we know what they are doing and that naturally trees take time to grow, but all in all the management are performing incredibly poorly. The money now spent to acquire all of the forests and new plots is gone (or most of it) so at some point the fund will need to start earning, or it's nothing more than a jam tomorrow investment and as the UK stock market shows, tomorrow never comes for many.
I'll have a listen to that later, but for now, I would be more inclined to think the price 'might' flirt with the £100 million market capitalisation level so I'm holding off from putting cash back in here. I want it to do well because I like trees. I also like the prices that can be achieved for UK hardwood timber (some of the established forests can provide good quality building standard timber, so I would like to see a timescaled plan to monetise portions of what we already own).
A lot of self builders in the UK prefer timber framed houses and panelled houses. Good quality timber that doesn't have to be shipped from Germany, Denmark, Norway etc would be very welcome in the self build community, particularly if it's UK sourced. I would build a timber framed panelled house myself if I had the cash (and plot) but alas, the reddies aren't there just yet.
Thanks again for the link, I'll throw £500 in here at the end of the month, maybe an RNS will land saying we're now in the Christmas Tree business.
All the best
Damonhill
No probs mate, I hope it starts going the right way for us soon.
All the best
Tygra,
Agreed it's still early to dive in deep with FSF, bearing in mind the direction of the SP graph. Hopefully, it will bottom out soon. I'll look out for the RNS re Christmas trees!
Just watched the year end presentation. They are commited to addressing the share price. Also positive on next two years planting. No plans to sell carbon credits until 2030 onwards.
As previously stated , a slow burn. Although, now could be the low?
GLA.