(DRR) Deterra Royalties and (GNE) Genesis Energy

Hi Richard,

Thanks for the encouraging feedback, we’re only as good as our last quarter so, there’s no rest for the wicked! Two interesting stocks here:

Deterra Royalties (DRR) – We are not fans of DDR’s takeover offer for Trident Royalties in the UK, its now a very different investment proposition becoming an iron ore/lithium royalty business. Also, they didn’t get Trident on the cheap although lithium prices are clearly depressed. We think this will lead to a turnover of their share register and teh stock will remain in the naughty corner for a while yet. There will be a time to buy DRR again, however, we have no interest at this stage around $4.

Genesis Energy (GNE) – As you say GNE has endured a tough few years with the stock almost halving from its 2021 high. A quick look at the financials’ of GNE on the MM site plus its interim 2024 report indicates the dividend is sustainable but at what cost as the shares keep slipping lower – its not for us. It could easily be called a “dividend trap”.

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Deterra Royalties Ltd (DRR)

LAST UPDATED 20/06/2024 19:03

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Deterra Royalties Ltd (DRR)

LAST UPDATED 20/06/2024 19:03