Global Industries (GLBL)

[Tecumseh]

Am I the only one who thinks GLBL is currently the most neglected stock in the world right now? I do not understand why it is trading so low, especially when the dividend is safe.

-Even if the dividend was cut by 30%, at these levels, GLBL would still be yielding an absurd 20% (and that is IF the dividend is cut, currently there is no reason to think that it will be).

-GLBL announces its dividend on the 11th (presumably). Are people selling it off because they are nervous that the maniacal boogeyman that is SUNE is going to pull some scheme to steal GLBL's cash, kind of like how they strong armed TERP to get what they wanted? This is absurd. TERP is a completely different scenario, and there are currently no incentives in place for SUNE to liquidate or alter their position in GLBL, or slash its dividend (see for yourself in Q3 earnings report/call).

-Even in the event that SUNE goes bankrupt, GLBL is still absurdly undervalued. They have 1.1 billion in cash and a market cap of 400m...

-People saying that GLBL could fail to have enough CAFD to cover their dividend are also crazy... the CAFD is from fixed 20 year contracts from GOVERNMENTS AND CITIES, not couples who are can't pay off their credit cards. Not to mention the diversity of the GLBL assets... nearly 10 different countries and 40 completely different projects, not to mention the type of projects are even diversified between Wind/Solar/Hydro. The govts will pay down the contracts because the contracts are for their ELECTRICITY; it's not like GLBL is selling them ice cream cones.

- "GLBL is dealing with countries in emerging markets like Uruguay and India, that seems sketchy." - Guess what? Given what the new economic landscape is telling us, emerging markets are finally going to start crushing developed markets in terms of growth, but that is besides the point. The countries that have been slow to pay their renewable energy contracts? Spain and Germany. Not Brazil, not India, not Uruguay. Why? Because European nations can afford to flip the bird and be late, because they have other resources more readily available in the event of a credit squeeze. If the developing cities that GLBL does business with do not foot the bill, their lights get shut off. Yes, these countries are more likely to pay their foreign energy debts than even developed nations.

- Many of GLBL's projects have been purchased from 3rd parties other than SUNE: proof they can function as their own company without SUNE.

There many other details I am leaving out which require a lot of number crunching, but I am just trying to get at the big picture. If you would like to see the data, here is a link to their Q3 earnings report:

http://www.terraformglobal.com/phoenix.zhtml?c=254121&p=irol-irhome

Also, if you want to read their earnings call transcript, you can do so here:

http://seekingalpha.com/article/3676836-terraform-globals-glbl-ceo-carlos-domenech-q3-2015-results-earnings-call-transcript?page=1

^My favorite quote from the conference call: "We wanted to share an important point regarding our visibility to pay the $1.10 dividend to our Class A stockholders. As we have discussed previously, our current cap estimate run rate is $139 million. Given that we have 117 million Class A shares outstanding, this would require an aggregate distribution of approximately $128 million. This translates into 1.1 times coverage based on CAFD generated just from our current fleet."

Aka they already have enough cash flow from their current operating projects to pay the dividend.

-There are virtually no articles about GLBL and its unique situation and even the message boards are dead, with a post only every few days or so. I think people just go "GLBL? That's a SUNE yieldco, right? Heard that whole situation is a mess so I'm just going to stay away" without even looking at the facts. This has created a buying opportunity for people who actually slow down to do due diligence.

-Most people still think that the GLBL dividend yields the same as TERP because they are unaware of the fact that the true dividend is 27.5 cents/share rather than the 17 cents/share that is listed on Yahoo, Google Finance, Schwab, etc. This misinformation has contributed to a lack of adequate demand for GLBL shares resulting in its current pricing at irrationally low levels.

For these reasons, and many others, GLBL is without a doubt in a unique situation that probably won't last much longer. If you can get shares in the $3.20s (all time lows), then you can sit back as it doubles or even triples over the next month. My cost basis is in the $3.60s, and I am adding more today.

My Solar "bundle" in my portfolio is 30% SUNE, 70% GLBL, and 10% TERP (with TERP acting as a sort of hedge in the event of Tepper winning the lawsuit).

Best,

Tecumseh