||ORD 11 17/43P
||EPS - Basic
||Market Cap (m)
|Gas Water & Utilities
National Grid Share Discussion Threads
Showing 4851 to 4874 of 4875 messages
|I'm keen to get back in but at these levels surely there will be profit taking before long. It's hard to watch the share price rise without you but just have to bite the bullet and wait for it to fall back to a more reasonable level.
Any comments on this score?|
|This could be going back to 1150,maybe £12.IMHO|
|* National Grid +1.1%, near top of FTSE 100 <.FTSE>
* Morgan Stanley, rated 5 stars for recommendation accuracy on NG by StarMine, upgrades to "overweight" in a note called 'Closing the value gap in the US'
* At 40% of EV, the US is a large part of National Grid - which is growing quickly, and valuation discount should narrow (US biz trades on c.1.4x rate base – a hefty discount to peers at 1.7x, per MS)
* Broker says at 9% of EV, other businesses should not be overlooked: delivering new property developments in London's Fulham and Battersea, as well as providing further insight on Grid's additional 2000 acres, should drive value upside
* MS sees a flattening of the UK yield curve through 2017 and rising growth uncertainty as Brexit negotiations begin in earnest – both helpful for NG's relative investment story
* Third most actively traded UK blue-chip stock on Friday|
|We're back above the line in post 4464.|
The share price in ng collapsed with the appointment of Trump.
The fed claimed that 3 interest rate rises were coming.However since the last fed
meeting it is clear that the markets do not believe the fed.
If the markets are right then ng as an investment that is effectively a proxy bond
will continue to recover lost ground i guess until sentiment changes with regard to perception of rate rises.|
As an added point, and this is only an opinion as I couldn't possibly give advice..... :)
I expect the share price to rise after an initial fall, though this may take some time to get back to pre sale share price. However, the share price drop may be mitigated by the share buy back and a possible share consolidation. If the price recovers then you just keep your original option price.
However, we have been here before where the share price dropped due to a rights issue when NG was raising £3billion to invest on infrastructure build because OFGEM said NG shareholders should take a hit! In which case, sharesave holders closed their option took the cash, bought shares in the open market at a new lower price than the original option price and then took out the next sharesave with a lower option price.
The same happened to bank employees when the bank crisis was at its peak. Shares from £9+ was reduced to approx £1. Many bank staff cashed in their sharesave, took the money saved and waited for the next sharesave issue which was at a much new lower price.
I believe the next sharesave option price will be issued in Dec / Jan for 1st April 2018?????|
|As I said earlier, the special divi is not based on excess money that the Company has in it's kitty due to very good returns and profits, it has the money from the proceeds for selling part of the Company!|
Sharesaves are based on 80% of the share price over a three day period at a specific evaluation time. Be careful, sharesaves are just that, savings to buy shares at an option price in the future. You do not hold any rights till your options are excercised. The company isn't any smaller till the 61% of the Gas Distn business is completed!
If you go back to when NG was Privatised in 1990, the Company was owned by the 12 Electricty Area Boards (now DNO's). The share price of NG was calculated as a reflection on asset value and the value of the parent company area boards. So when a sharesave was issued it was based on that basis. Then in 1995 when NG was floated on the open stock market it was floated at a price of £2.20 yet the calculated price for existing share options was much higher, so when it was floated the option price was altered to reflect that new price. The upshot being for employees that stuck with the sharesave was that they got six times the shares they originally were to get woth the new option price being reduced to 37.5p. However, in those early days when the first sharesaves were issued when the Company was vested in March 1990, the max you could save towards a sharesave was £150/month! It was changed to £250/month less than a year later and remained at that level till three years ago when it was raised to £500/ month!|
|Comments of the company being "smaller" if this
reflects on the s/p, then why are employees being
offered shares this yr at almost the
the same price as last year?
buybacks should keep share price up|
|hi UtyINV - thanks for your response, I appreciate your remarks. wait and see appears to be the best way forward here, as you state. I was interested because when I saw your post I was wondering if you had heard some definite news on the matter that I'd missed. I will still be surprised if the dividend is cut, recent share price movement (albeit bolstered by the buybacks) do not imply this, especially given the fact that utilities are out of favour atm - pace my benighted CNA and SSE holdings! Good luck to you and roll on 31/3 by which time, as you say, it shd be a little more distinct - una|
|This looks like a good Company to be involved with on a three year view.
The exposure that ng have to the us Economy should benefit from Trump infra structure spend.
Also we should benefit from currency movement.
Finally here in the uk we have a stable market at the time of penning these comments.|
You don't get something for nothing.
With the sale of 61% of the Distn Gas business the company will be that much smaller with revenue adjusted accordingly.
As my previous post, there hasn't been a decisive strategy by the 'Board' but based on what we know and without re-typing the cals:
£3 billion will be returned to shareholders via a special divi.
Approx 3.7 billion shares in Circ.
£1 Billion will be used to buy back shares reducing the shares in circ . The reduction all depends on what price NG pay for the shares to be cancelled. If they do it too hastely they may get a poor price (too high).
There then leaves a deficit, £1 Billion buy back does not replace £4.6 Billion. The difference has to be accounted by either a share consolidation or a reduction in share dividend or a mixture of both because even after the share buy back (looking at the worth of the business being sold off and what revenue it brings in - E/S) the reduction equates to approximately 6%.
Many Companies that have issued special dividends due to a sale of part of the business have accompanied the payment with a share consolidation. The special dividend is not excess profits or cash the Company has found (the regulator is not a friend of the Utility), it (NG) is selling part of the company you as a shareholder own and they are giving you back cash for that part of the business.
The saving grace is that NG have decided to sell the majority stake in the gas Distribution because if you look at the last full year results the returns in this costly, highly regulated business is not that great and the Company believe they can achieve greater returns for shareholders by concentrating on other parts of the business, i.e. USA. So in time the income from the shares should continue to provide greater returns to investors. OFGEM (regulator) needs to appreciate that NG is not a charity!
We have to be patient to find out the finer details on completion of the sale; when the special divi is to be paid, how much share buy back has been achieved from the proceeds of the sale and if there is a share consolidation and / or a new dividend strategy. It's all guess work at the moment but according to reiterated publications the sale will be completed on or before the 31st March, so not long to wait!|
|hi UtyINV5 re. yr post 4449 abt the possible reduction in the dividend following the divestment, are these your own musings or have you seen any references to such a proposal? I have held vod and gsk who have paid share price divs in recent years following similar sales of assets and neither of them reduced the subsequent dividend. I wd be surprised and disappointed if it did happen - and i think the market wd be as well, since it's not been mentioned before (afaik) - cheers - una|
|Some late news - so late in the day for an RNS that I nearly missed it!
"16 March 2017 4:48pm
National Grid Gas Distribution - European Commission Merger Clearance
National Grid plc is pleased to announce that the European Commission has cleared the sale of a 61% equity interest in its UK gas distribution business to a consortium (the "Consortium") of long-term infrastructure investors.
The Consortium comprises Macquarie Infrastructure and Real Assets, Allianz Capital Partners, Hermes Investment Management, CIC Capital Corporation, Qatar Investment Authority, Dalmore Capital and Amber Infrastructure Limited/International Public Partnerships.
National Grid expects that the transaction will complete on 31 March 2017."
|Many thanks Dave, I should have known that lol.|
|It might be an idea if you searched LSE TRADE TYPES then you would know that this is nothing to get excited about. The 1.4m trade at 4:35 was flagged as UT and is an end of day uncrossing trade to clear down SETS so not a buy or a sell really.|
|Agreed, but positive nonetheless...|
|Surely a 1.4 million buy would be small beer for the size of company that ng is.|
|1.4m buy and no RNS.....?? Doubt it would be MM to MM....interesting....|
|A lot of our stock appears to have taken a dive since the Yanks opened! The ftse is only up because of the Oilers and BT!|
|picks up on US buying from when the Dow opens?
too pessimistic over here (or too optimistic over there!)
the ftse followed the same pattern today but maybe that's as no nasty shocks in the budget and growth forcasts upgraded?|
|Every day seems to follow the same routine at the moment - drop1-2% and then regain it in the afternoon. Goodness knows what it means|
|as the sale of 61% of the UK Gas Distribution Unit is due to complete by 31-Mar-2017 I've added brief details at the end of the header for reference
there is also now a small DOW index chart towards the top of the header to complement the FTSE chart|
|yes sounds quite plausible, and a share consolidation could possibly be on the cards to keep future dividends in line; I hadn't considered that|