Engie is taking a pounding because of their now not so profitable shift to renewables and gas.Dunkelheit wrote:Hi Seppia, here another european investor glad to read and learnSeppia 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
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?
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