Severn Trent Share Discussion Threads

[arja] 25/9/2013 12:05

down today in sympathy with SSE it seems and I am glad I got out of my day trade in that a few days ago !

[arja] 24/9/2013 16:06

maybe Miata but SVT is a good trading stock lately as it trades in certain range and nice to jump in and out with CFDs or spredabets .

[miata] 23/9/2013 13:16

Questor

Returns from utility shares are governed by the regulator. In the water sector that regulator is Ofwat. The regulator agrees the prices water companies can charge, what price increases are allowed, what level of investment is required into pipes and reservoirs and the return the companies are allowed to make. These are agreed and then set for a five-year period. That is important.
Utility stocks tend to peak at the midpoint in the regulatory period. It's therefore worth noting that we are now past that point in the water sector as the current AMP5 five-year regulatory planning period runs from 2010 to 2015. Historically, water shares have tended to struggle after the midpoint in the regulatory period and 2013 looks likely to be no different.

[arja] 18/9/2013 15:06

still a mug's game I see based on spread and time values quoted by IG index in spreadbets ! easy money for them though if they can attract enough mug punters !

[arja] 18/9/2013 11:32

get similar leverage

[arja] 18/9/2013 11:31

I see that miata and I used to play call and put options in OZ but it was really a mug's game as spreads not great, run by MMs ( my pet hate) and usually illiquid except in a few stocks . If you have a large deposit with CFD provider here I suppose you

[miata] 18/9/2013 09:08

Vastly more leverage at less cost on near to expiry options.

[arja] 18/9/2013 08:59

miata- tricks of the trade I guess . Less need for options nowadays I suppose because of other margin products such as spreadbets and CFDs .

[tradermichael] 18/9/2013 07:26

United Utilities and Severn Trent bubble up on bid talk, but FTSE falters ahead of Fed decision

Severn Trent was also in demand, up 34p to £17.92. Traders said the business could be attractive to a predator for its strong cash flow and defensive qualities but they also pointed out that Canadian-led consortium LongRiver recently gave up on a bid after a board rejection. And the regulatory regime surrounding the UK water companies remains unclear.

[miata] 17/9/2013 15:27

Options expiry this Friday, (means options are very cheap as there is little time value left) always the time to float rumours to make the most money. Should be cheaper next week!

[arja] 17/9/2013 15:10

thanks Miata -so mainly the bid rumours resurfacing ! I notice it broke through 1800 chart resistance and now back to 1800 level - thinking about buying !

[miata] 17/9/2013 11:33

BE Though, in traditional bull market style, we had a nutso morning bid rumour.
Severn Trent PLC (SVT:LSE): Last: 1,810, up 52 (+2.96%), High: 1,834, Low: 1,752, Volume: 435.29k
BE Still up 3.3%.
BE No one seems to have heard a specific tale, though there's lots of generalised noise around.
PM A nutso morning bid rumour
BE What we can say is that Longriver backed off on Jun 11, so remain very much locked out under Takeover Panel rules.

Plus a bit of movement out of the rest of the market into defensives (also tobacco) ahead of the FOMC. Plus Yellen shoe-in probably means lower interest rates for longer, therefore move to lock in to high yielders.

[arja] 17/9/2013 11:10

rocketing today for some reason ! anyone any ideas why and I am sorry I was out this morning as missed it !!

[miata] 13/9/2013 11:51

JP Morgan

Ofwat has issued a statement this morning regarding Thames Water's
application for an interim determination of k (IDoK). The main point of
interest is that Ofwat is considering using the substantial effect mechanism
to claw back the benefits that Thames Water has received from economic
circumstances beyond its control (i.e. high inflation and low interest rates).
We believe that this is the first time Ofwat has suggested using this power
and it could create an unfortunate precedent for investors in the sector.
Following Ofwat's presentation earlier this week when it focused on the
industry lowering bills for customers, with an 'indicative' WACC of 4.1%,
we believe that investor sentiment towards the quoted water companies
may suffer short term.

Read-across to the listed companies. Ofwat has made it clear that it is
only looking at clawing back economic benefits from Thames and not
the other water companies. However, there is a risk that this could set an
unfortunate precedent and hence change the perceived risk/ reward for
investors in the sector. In conjunction with Ofwat's presentation earlier
this week focusing on the potential for customers' bills to fall in the next
review period and using an indicative WACC of 4.1% (vanilla, real) we
would expect investors to reassess the risk reward for the sector ahead of
the regulatory review. We continue to prefer PNN of the listed water
companies, as it has less exposure to the regulatory review given the
growth in its waste business, Viridor.

[miata] 20/8/2013 13:05

Full year dividend for 2013/14 set to be 80.40p, which gives a forward yield of 4.7%. It is however this high yield that makes them similar to a bond with the comcomitant risk that their capital value will fall as bond yields rise.

[brinks_matt] 20/8/2013 12:37

Haven't SVT agreed to a yield of 6.2%? That beats bond risk by a mile.

[miata] 20/8/2013 08:58

Wednesday's FOMC minutes are likely to confirm QE tapering and thus rising US and UK bond yields - a negative for utility share prices.

[miata] 26/7/2013 09:16

26 Jul 2013 Severn Trent PLC SVT Deutsche Bank Hold 1,772.00 1,762.00 1,550.00 1,550.00

[arja] 24/7/2013 15:32

hammered today for some reason but good chart support at 1720 !

[miata] 18/7/2013 09:10

Severn Trent has revealed that it ran up a £19m bill – almost 9% of this year's pre-tax profits – fending off the takeover approach.





SVT has urged people to restrict their use of hosepipes and sprinklers during the night, it said some of its customers had been affected by low pressure due to the increase in demand.

[miata] 17/7/2013 12:04

Severn Trent Plc Interim Management Statement for the period 1 April to 16 July 2013

The Board of Severn Trent Plc confirms that trading across the group has been in line with its expectations and prior guidance.


........ the dividend for 2013/14 is set to be 80.40 pence, representing growth of 6% year on year.

[arja] 21/6/2013 16:58

wow - took a real pounding in last hour after I bought - I must have put the mokkers on it ! Hope it bounces on Monday but chart now looks grim after breaking support

[camlor2] 21/6/2013 10:03

Sold these at £21.50,brought again today,as they where downgraded last week to £16.16,Think there might be another bid after 6 months or hope,think the directors have a lot to do to get these back over £20 !!!

[redartbmud] 20/6/2013 20:54

I don't suppose that they give a damn.