Dunkelheit wrote:Seppia wrote:Bought some more Engie today, one of the best bargains in Europe in my opinion.
Now my second largest single stock holding after Royal Dutch
Hi Seppia, here another european investor glad to read and learn
Now that I read your last buy, I would like to ask you a couple of questions:
- What are your prospects regarding Engie?
- What's your opinion on another utility, the italian ERG?
Engie is taking a pounding because of their now not so profitable shift to renewables and gas.
In my opinion they are just doing what the French do best with their state owned companies: plan VERY long term.
The TGV project for example started in the late 70s and went break even in the 2000s, but they were by then in a position to profit massively from their technological edge (except for the Japanese, nobody had such a great technology in super fast trains).
They did the same in the 80s with nuclear energy.
While what Engie is doing may hurt them short term, I view this as being at the very front in a few years when the inevitable will happen.
Also, Engie owns a very large stake (I think it's 30% if I'm not mistaken) in Suez who basically does waste management (another thing of the future in my opinion: how stupid is that now waste is managed at the micro level almost everywhere? This will change)
Lastly: they already announced a dividend of 0.7€ per share for the next two years, at the current 11.65€ price that's almost 6%.
I would avoid Italian state owned companies