Stocks sold September 2017: Enel and Uniper

Uniper was a gift that was handed out to me from E.On. The initial idea from E.On was to make one purely green utility company (under the name of E.On) and one less green company under the name of Uniper. Great idea but poor execution that was stopped my various German governmental bodies which means that E.On still had to hold on to nuclear power stations.

Since the Fortum sold off their power grid in for instance Sweden (idiots in my opinion) they have been searching for new places to put this money and the market have apparently suspected one of those locations to be Uniper. Fortum and E.On have recently announced the take over. Due to my take over experience with K+S that I utterly failed to respond correctly to I decided to pretty much always step out of a company if there is an offer and the share price on the market is pretty much close to that offer. Hence, I stepped out of Uniper.

I therefore sold all my 40 shares in Uniper and I received a total of 875.10 € paid out on my broker account which means, since they were handed out to me from E.On at 10 € per share, that I made a profit of 475.10 € which is the equivalent of 119% profit and additionally I have received 22 € in dividends. Since this was a gift from E.On I consider my holding time to have been 67 months.

To find out more about Uniper please click here.

Enel is by far my best utility company investment. Very early on I was annoyed that I had managed to buy more before the share price started to increase and all I had was an initial investment of 1077 € for the 450 shares that I bought back in 2013 for 2.38 € per share.

The wonderful thing with Enel is that they are the most green utility company that I have had which would be excellent also moving forward in the future but there is a price boarder on everything and Enel have lately gone past that. When a utility company is trading up at a P/E above 20 WITH excellent earnings then for me it is a very clear signal to walk away and that is exactly what I did.

When I sold my shares the price was up at 5.125 € and I received 1220.38 € out in cash as profit. This means that I made a profit of 113% during my 51 months of holding and on top of that I have received 274.5 € in dividends.

To find out more about Enel and to follow the journey then please click here.

My average holding time on my sold investments are now up at 36 months which I find fully acceptable.

Any changes will be brought into the stock portfolio upon the next update in the very end of the month.

Dividends from Nike, ABF and Enel: July 2017

For my 40 shares in Nike I received a total of 6.34 € and from this was taken 0.95 € in taxes and I was left with 5.39 € as cash on my broker account.

To find out more about Nike then please click here.

For my 177 shares in ABF I received a total of 22.66 € and all of it was paid out as cash on my broker account.

To find out more about ABF then please click here.

For my 450 shares in Enel I received in total a value of 40.5 € and from this was taken 10.53 € in taxes and I was left with 29.97 € in cash on my broker account.

To find out more about Enel then please click here.

To see my total dividend flow then please visit the Stock Dividends page that will soon be updated. 

Analysis of Enel 2017

Company: Enel 

ISIN IT0003128367 | WKN 928624 

Business: An Italian energy and gas company. They have hydroelectric, thermoelectric, nuclear, geothermal, wind, solar and other renewable power plants. They also have the network not only for electricity but also for gas pipelines in large parts of Italy. 

Active: Present in over 30 countries. Heaviest involvement in Italy and Iberia. 

P/E: 21.7

Here you can find the previous analysis of Enel 2016. 

The P/E of ENel is too high with 21.7 and the P/B is also on the high side with 1.3 which gives a no from Graham. The earnings to sales are so, so with 3% and the ROE is horrible with only 6.2%. The book to debt ratio is also not very nice with 0.4.

In the last five years they have had a negative yearly revenue growth of -3.6% which is bad and this then gives a motivated P/E of 8 which means that the stock market is highly overvaluing Enel at the moment.

They Pay a nice dividend in the size of 3.9% which on the other hand correspond to 83% of their earnings so they better start increasing those earnings.

Conclusion: Graham says no to Enel and so do I. The P/E, P/B is too high, the ROE is too low and the dividend %-age versus earnings are also poor! Enel did not have a bad year on top of this they are up at a P/E of 21 and yet one should not forget that energy prices for the last two to three years have been bad. I am thinking that maybe I should sell off my shares in Enel by the look of things... on the other hand... RWE, E.On. and Uniper had all losses and the result from Cez is not spectacular either so the fact that Enel is doing pretty good in these world market conditions is indeed impressive and it should be awarded by me remaining as a shareholder.

Enel annual report 2016

For the report in full please click here and for the previous summary then visit Enel annual report 2016 and to get a better feeling for Enel then please take a look at analysis of Enel 2016.

In the financial statement below you can see that Enel is doing very well! Yes, their revenue did decrease slightly to 70 billion € but due to cost control they managed to get a decent earning out of 2.6 billion euro! The European energy market is very well connected. How can a company in Italy make significant profits while a German company makes significant losses? I would blame it all on the incompetent CEO. 

Conclusion: Enel is doing an excellent job and each year they seem to increase their profits. I am very pleased with this investment and the only thing that saddens me is that I made such a small investment in Enel from the beginning.

Dividend from ABF and Enel: January 2017

For my 177 shares in ABF I received 53.43 € in dividend that was directly added to my broker account as cash.

To find out more about ABF then please visit analysis of ABF 2015.

For my 450 shares in Enel I received 40.50 € in dividend and from that was taken 10.53 € as taxes to support the Italian government. The remaining 29.97 € was paid out as cash to my broker account. I could be that Enel have started to pay out dividends twice per year because they usually pay out only once during summer.

To find out more about Enel please click on analysis of Enel 2016.

To see my total dividend flow then please visit the Stock Dividends page that has now been updated. 

Energy report Q2 2016

In the energy group I pushed in Cez, E.On, Enel, RWE and Uniper. The only company that have done semi good for the last couple of years has been Enel and E.On is the big value destroyer. After reading the report from Uniper I know see how E.On made themselves "clean" and  "green" after being forced to keep the nuclear. They have leased out all their nuclear plants including a lot (all?) of the liabilities to badabum! Wait for it.... wait for it.... Uniper! When a government force you to do something then as always... if there is a will then there is also a way.

Cez

For the report in full please go here, to see the previous summary please visit Cez report Q1 2016 and to find out more regarding Cez then click on analysis of Cez 2016.

In the financial statement below we can see that the happy days in eastern Europe, if they ever started, have definitely started to be mixed in with some bitter sweet ones. For the running 6 months we are down with almost -6% in sales and the net incomes is down by almost -11% which is no good at all. Everything looks ok besides from this drop in sales which drags down everything. 

Conclusion: Last quarter it looked as if Cez had things under control by having decreased costs to follow the decrease in sales. This quarter the costs seems to have caught up with them and earnings have made a significant drop especially considering that they were up at 9.9 billion CZK after the first quarter. They do however still make money which is not always the case in this line of business which means they are doing ok. I will remain a grumpy shareholder.

E.On.

For the report in full please go here and to see my previous summary please visit E.On report Q1 2016 and to find out more about E.On then please go to analysis of E.On 2016.

In the financial statement below things are not looking bright. The sales keep dropping year after year, quarter after quarter. They had almost no earnings to report in Q2 and due to handing out Uniper to their shareholders we end up with a big, big minus for the period. One would have hoped that Uniper then at least looks good but we all know that hope is what dies last.

Conclusion: Things are for the fourth year in a row looking bad for E.On and what I thought would be one or two tough years have ended up being a long running show with few viewers. I should have left a long time ago and yet I remain as a grumpy shareholder.

Enel

For the report in full please click here and for the previous summary then visit Enel report Q1 2016 and to get a better feeling for Enel then please take a look at analysis of Enel 2016.

In the financial statement things are looking ok. The first reason for claiming that is because yes, they are also decreasing their sales but still Enel comes out with some good earnings and have not been forced to write down anything for the 10th time in a row so yes I am happy with this. Sales down, costs down and earnings flat.

Conclusion: Enel is doing ok. Many other companies are forced to split up their business but Enel does not have to do this which means that their future progress might be even better and they will for sure jump up on the list of largest European energy providers.

RWE

To read the report in full please go here, to see the previous summary then click on RWE report Q1 2016 and to see the previous analysis of RWE 2016.

As can be seen in the financial statement below also for RWE the sales are decreasing as well as every other company. Costs are not down and with some heavy finance costs we end up with as little as 0.74 € per share which is much less than last year but then a large part of the "earnings" came from sale of business.

Conclusion: RWE is doing so, so. They have also decided to split up their business in the future just like E.On did so we shall see when that rabbit arrive to the portfolio. I will remain as a shareholder in RWE.

Uniper

To read the report in full then please go here. Unfortunately I have neither analysed nor written any previous reports regarding Uniper.

What can I say... anything that Dr. Teyssen have kept his fingers on is apparently a company going down the drain. It is sick to see how Uniper is doing and what they are forced to take on from E.On.

In the financial statement below we see a crazy decrease in sales. We see large costs and very large depreciation. I also love to see "other operating expenses" that are in the size of 6.8 billion € and yet was apparently not deemed important enough to get mentioned in a note. We are talking about a share price of Uniper in the size of 10 € that are reporting losses in the size of -23 € for the first half of this year. Well done!

Conclusion: By the look of it Uniper is off to a good start helped along by our all time favourite Dr. Teyssen. I would not be chocked if they would ask their shareholders for more money soon. I need to think a little what to do with this holding.

Overall conclusion: The energy sector is still not healthy. Some of them are able to present a bit of earnings but one never knows if they have yet to do another write-down on something which makes it very difficult to be a shareholder. My contrarian thought that one could just walk in and buy any company when an entire branch drops is by the look of it wrong. One must still be very selective and maybe even more so since it does indicate that some of them could go under.

Dividend from Enel: June 2016

For my 450 shares in Enel I received 72 €. From this was taken 26.31 € in taxes and I ended up with 45.69 € as cash on my broker account.

To find out more about Enel please click on analysis of Enel 2016.

To check out my current dividend payment history then please visit the Stock Dividends page which has now been updated.

Enel report Q1 2016

My Italian success story Enel arrived with their Q1 report not that long ago. The report was like most other utilities companies speaking of much less sales.

Analysis of Enel 2016

Company: Enel 

ISIN IT0003128367 | WKN 928624 

Business: An Italian energy and gas company. They have hydroelectric, thermoelectric, nuclear, geothermal, wind, solar and other renewable power plants. They also have the network not only for electricity but also for gas pipelines in large parts of Italy. 

Active: Present in over 30 countries. Heaviest involvement in Italy and Iberia. 

P/E: 16.7

Enel annual report 2015

Nooo! Yet another ball dropper because the annual report from Enel arrived in the end of March. The problem with Enel is that they arrive with the reports from all their daughter companies before they then at some point publish the report for the group. This seems to confuse me each time and is the reason for this ball dropper. Share price has slowly climbed up, also for Enel, since the mad-cow hysteric February drop.

Enel report Q3 2015

My greenish energy producer Enel arrived with their report. Enel had a bit of a share price drop during spring-summer but are now up above 4 € again. I was thinking about increasing the position when they were down around 3.7 € (because my initial investment was so small) but I never got around to it and it seems as if I never have the money to do so. It seems to be a never ending story with my companies and there is always one of them dropping like a stone and I then feel forced to buy that one instead so I never get to water the flowers.

Enel report Q2 2015

And those energy companies keep coming with their reports. Actually this has been out for a while but I have just not gotten around to take a closer look at it. Now I did and I am not that unhappy.

Dividend from Enel: June 2015

The flow of dividends will from now on significantly decrease. My two US companies (Intel & IBM) and my UK one (BP) will keep paying each quarter but those massive once a year payment I only have one left after this one from Enel. I must say that I am pretty content with the overall dividend increase that I have received this year.

Enel increased their dividend slightly and I therefore received 63 € for my 450 shares. There were some taxes taken in the size of 23.02 € (I notice that Italy have increased their taxes from 20 to 26%) which gives me 39.98 € as cash on my account. With Enel I now have a YoC of 5.8% after almost two years of holding which I find to be great.

To find out more about Enel please click on analysis of Enel 2015.

To check out my current dividend payment history then please visit the Stock Dividends page which has now been updated.

Enel report Q1 2015

My fourth energy company is also out with their quarter report. Unfortunately it is still only in the form of a press release but I could not be bothered to wait any longer. Enel have extreme time schedules between the press release and the publication of the official reports.

Analysis of Enel 2015

Company: Enel

ISIN  IT0003128367 | WKN 928624

Business: An Italian energy and gas company. They have hydroelectric, thermoelectric, nuclear, geothermal, wind, solar and other renewable power plants. They also have the network not only for electricity but also for gas pipelines in large parts of Italy. 

Active: Present in over 30 countries. Heaviest involvement in Italy and Iberia.

P/E: 76.4

Enel annual report 2014

The Italian energy provider Enel arrived some time ago with their annual report. Here I will try to make a summary of what was in that report.

End of year overview 2014

The end of the year is near and for that reason it is a good time to look over all the investments again. The reasons for why I bought shares have not changed since last year so for all the old stocks you can go to the previous report called End of year overview of my contrarian stocks 2013. The old companies will however still be brought up with how much value they have generated (share price * shares + dividend - trading fees) and if there has been any new lesson learnt then that will also be brought up.

Enel report Q3 2014

My Italian electricity company Enel arrived with their third quarter report for 2014 and like the rest of the business they are not doing too well. Even before this report the share price has been drifting downwards. What was then in it?

Enel report Q2 2014

 

The second quarter reports from my companies keep dropping in and this time Enel arrived with their numbers. The market was not pleased and the share price dropped by around -1.5% directly. So what was then in the report?

Dividend from Enel: June 2014

Woohoo! My first dividend payment from Italy! The energy provider Enel (see analysis of Enel 2014) decided that from the earnings during 2013 an amount of 0.13 € should be paid out in dividend. Since I currently hold 450 shares this gave me 58.50 € from Enel.

However there is no tax agreement between Italy and Germany so 20% (11.70 €) was taken by the Italian government and left me with 46.80 € paid out as cash. Even though I would have preferred to receive the full amount I am happy to pay this tax to Italy in the hope that they use it well to build a bright future.

The Stock Dividends page has now been updated.