Tuesday, September 29, 2015

Enviva Partners LP (NYSE:EVA), High-Yield Stock IPO to Watch

Enviva Partners LP (NYSE:EVA) is ready to profit from a unique renewable energy niche. The company produces and sells wood pellets that are used as fuel for electricity generation plants. EVA was also an April IPO. Company management claims that wood pellet sales are a growth business with demand increasing worldwide. Currently most of the demand for pellets is in Europe. Enviva owns and operates five production plants in the Southeastern U.S. The market does not see much value in the business, and the share price is down 40% from the IPO, pushing the yield to over 13%. Enviva has only paid one quarterly distribution, so this is really a watch and wait idea for conservative investors, or a very attractive yield for those who are willing to take on a higher level of risk. The stock is being followed by 4 analysts with price targets between $23.00-$26.00

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