Do you know what a royalty is?
I don’t mean the Queen of England. In business, it’s where one party gets a small slice of revenue—with no costs.
It’s a free ride.
In oil and gas, it’s often called a GORR—Gross OverRiding Royalty. In mining, it’s often called an NSR—Net Smelter Return, or NPI—Net Profits Interest.
But I like to keep things simple. I call it a free ride.
It’s the most lucrative kind of revenue. And I’ve found a company that is like a royalty company for solar in the USA.
Their business model gives them a call on solar growth in America. If solar doesn’t grow, it costs them almost nothing.
But if it does grow—and the recent 3 year extension of solar tax credits says it will—this company stands to grow at an incredible rate for the next three years.
I’ve never seen anything like it. The business model is so profitable, they already increased their dividend once in 2016.
No debt. Growing dividend. And they make their money in US dollars.
And not a single solar analyst covers it—probably because they don’t need to raise money.
Finding such a strong growth stock like this—ahead of the analysts—happens once in a generation.
I expect this company to raise dividends AGAIN in 2016. That will get the Market’s attention—and likely cause a big jump in valuation.
Oil and Gas Investments Bulletin