A two -digit profit is a rare thing. It can also be a red mark for investors, although high -yield stocks in some cases continue to pump stock profits in the long run. A few FTSE 250 Stocks offer northern 10 % revenue at the present time.

For example, The Solar Plover Blue Box (LSE: BSIF) produces 10.2 %. During, Summer Solar Energy Fund (LSE: FSFL) leads to 10.1 %.

Am I missing by not having any solar energy box?

Follow the long -term approach

The answer in the short term is: Yes, I.

Owning a 10 % stake+ the return helps enhance negative income currents. I own at least one, but not the solar energy box insight.

Over the past few years, Foresight has grown its profits per share annually. It pays quarterly stock profits. From a negative income perspective, it can be attractive compared to the less repeated payments.

But while I miss the profits, what about capital growth?

Here the picture is less attractive. Over the past five years, the price of the solar energy fund shares has decreased 25 %.

Similarly, the participation is currently selling 25 % of the net asset value.

Some red flags

Wait, though.

Why do you sell the arrow for a quarter of less than the net value of assets?

After all, shareholders can simply vote to promote the company, sell assets, and recover much more money than their shares are currently worth.

In theory, they can. In practice, although things tend to be more complicated than that.

Trying to achieve the value of the company's assets is difficult. Who says that if the summer solar energy fund tries to realize the money by selling its assets, it will be able to obtain the evaluation in which it is implemented in its public budget?

This 25 % discount is something of the red flag for me, along with a long -term decline in the share price despite the growth of fixed profits. It is clear that some investors look beyond the return on the long -term profits of the fund.

Mature sector for change

The management of solar energy entrance funds that are well realized.

It has also been struggled with possible explanations for the reason for trading solar boxes like themselves without a net value of assets. It also raised the possibility of integration and acquisitions in the sector.

This can help open some value in the sector.

Then again, it can be bad news. After all, the valuable low acquisition bidding can destroy many shareholders – which is currently facing with my investment in treatment.

I don't like uncertainty

The prominent solar income box has been bought steadily from its shares recently. Do this much lower than the net value of assets should help create value for shareholders.

The biggest question is whether solar input boxes are like those run by Bluefield and Foresight have a long -term business model. Volatile energy prices and changing weather patterns are risks to both.

With a solar solar income box to report its temporary results on Thursday (September 18), we must hear the current administration's thinking about the sector's prospects.

But I do not like question marks on the business model involved in large discounts to the net asset value of each of these FTSE 250 (Bluefield Solar Secord Targets with 26 % discount). I will not invest in either of them.