British Energy Share Discussion Threads

[bpoole] 26/10/2006 14:26

Found buyers at 400 on the last dip but, who knows.

[jeeves2] 26/10/2006 14:25

how blue is the sky ?,how long is a piece of string ? how much do you love me ?,...ABOUT 350.AND THE CHEQUES IN THE POST !

[bpoole] 26/10/2006 14:24

Found buyers at 400 on the last dip.

[bpoole] 26/10/2006 14:20

See if there is any support at 400p

[la maroma] 26/10/2006 14:12

What price could this bottom out at guys ?

[adeit] 24/10/2006 10:39

OK URL is Moderated and I can't find it here on ADVN

Basicaly it is the AFX release this morning
"British Energy down late morning as SG Securities cuts to 'sell'"

[adeit] 24/10/2006 10:31

i understand 6 out of 8 reactors where out of service last weekend for various reasons. Some of these are being cooled down before inspection so that the assessors do not have to wait. The cracking appears to be worse than expected and merited the other reactors being examined

It makes sense to take the hit before winter as a significanf precaution and in the hope that any minor problems are identified and repair work sceduled in an optimised manner ie considering costs/resource allocation/reduced output/grid demands . What this means is we like BGY and HMG will have to wait till the
fuller picture is established and in due course a public announcement (spin?) is made.

So make you bets - which way will it go?

SG Securities explaining their reason for downgrading are clearly concerned ADVFN competitor.com/action/news/showArticle?id=1574594

[tap3] 24/10/2006 02:04

pc4900074200 says 'Government, which controls 65 per cent of the company and had planned to sell a large part of its stake over the next few months'
Please give origin of info so that I can check this out.
I bought in 2+ years ago when the price was tens of pence. I couldn't believe then, that a company which supplies 10% of UK electicity could be so lowly rated.
- always knew there were safety issues (which BGY addresses)
- hoped for a dividend
Curent shutdowns indicate safety responsibility of BGY
The share price drop is overdone

[pc4900074200] 22/10/2006 13:04

Telegraph.



Equity view. Edited by Iain Dey Last Updated: 12:29am BST 22/10/2006

Pull the plug on British Energy.



It is not looking too hot for nuclear power. Shares in British Energy, Britain's only quoted nuclear power generator, plunged by 24 per cent to 427p on Monday after it shocked the market with news that cracked tubes could lead to two of its eight reactors being out of service for several months.

Specifically, the power giant reported cracks in boiler tubes at its Hinkley Point B station in Somerset and said it needed to investigate other boilers.

The news follows similar cracking discovered in Sept-ember at Hunterston B in Scotland. At the time, British Energy cut its output forecasts, its third reduction in as many years.

In a bid to reassure investors, Bill Coley, the chief executive, said problems at Hinkley Point B and Hunterston B were not caused by human error but by the age of the plants. There is also no threat to public safety.

The shares clawed back some of their losses and closed on Friday at 448p, but there is still a lot of uncertainty around what the financial impact will be on the company. The combination of reduced -output and the increased costs of inspection and repair will affect earnings in the future.

Not least, British Energy faces additional costs from having to buy electricity in the open market in order to meet its contractual obligations.

Analysts at Collins Stewart, the stockbroker, cut their full-year output forecasts for the company from 59 terawatt-hours to 56 terawatt-hours but said the share price fall had been overdone.

The news is, however, also a blow for the Government, which controls 65 per cent of the company and had planned to sell a large part of its stake over the next few months.

Given the uncertainties surrounding the company and the prospect of lower electricity prices next year as more gas supplies become available, we would advise readers to steer clear. Now is not the time to buy.

pc

[elsworth] 21/10/2006 21:56

.....logically speaking BGY is a prime short. The chart is showing a clear southward trend...with a level 4 target of £1.90/£2.25

Hope this helps

[karateboy] 21/10/2006 21:04

Unless BGY recovers the lost ground quickly, it will be kicked out of ftse 100 when the next review comes. That will put more presure on the price. The other factor is paying dividen which is now under threat..that also puts pressure on the price. I think the price may recover next year after sorting out the present technical/maintenance problems.

[hightech] 21/10/2006 09:33

jonak, you appear to be just slightly nicer than nuclear...

[hylas] 21/10/2006 02:06

chrissingh

I must disagree - the buyers are giving their cash to the sellers - it's the sellers who are reaping the benefits, by taking the money.

And if you wrongly think you can't go back, I suggest you take a look at SBT, NLR or, hundreds of others.
And idiots have been buying them all the way down.

This comment isn't aimed at you chrissingh, but funny how some desperate lice bring a new thread to the top of the bulletin board so that logical discussion and comments are hidden - we can all play that game.

[jonak] 21/10/2006 00:08

4.10 looked about right jezboy
I've dipped my little toe in on these, but its against my better nature; instinct tells me Nuclear Power is just not something nice people invest in.
So there'd better be a whopper of a divi to pay off my conscience.

[chrissingh] 18/10/2006 08:56

They also could have sold it for nearly 800p in july this year! We cannot just go back as most of the companies could be bought for a fraction in 2003 in comparison to what they are today. So make hay when the sun shines, the buyers may be idiots - but they are the ones reaping benefits. It's after all an idiots' market ;)

[hylas] 18/10/2006 07:41

The share goes up because idiots keep buying it.
Don't know why people want to pay these stupid prices when they could have bought it at any time in 2003 for 78p.

[chrissingh] 18/10/2006 07:27

If it is all bad news why is the share price keeps going up. More than 10% up in the last two days? There must be something behind all this. People who bough on Monday low have already made over 10% profit - and I hope more to come.

[speedy] 18/10/2006 06:19

There are plans to build several new nuclear power stations but there are not enough Engineers to repair more than one old station at a time? WTF???

[h4rsh2] 17/10/2006 12:47

They mentioned the boilers would be back working in November but as
everyone knows normal building work in one's extension always gets delayed
due to some sort of reason ..and this is no normal building work I hope
you get the point..

[kvkwn] 17/10/2006 11:08

Anyone one has the idea of how much revenue is lost due to the suspension of Hinkley B R4 and Hunterston B R3.(say 6 months)

I cannot find the information of their capacities and the % of revenue.

In addition, BGY has to buy the lost output from others during winter and probably for next spring: another negative factor.

[one for the money] 17/10/2006 11:01

I thought there were three lots of bad news in the one RNS!

LOL :)

Cheers
john

[h4rsh2] 17/10/2006 10:53

Are we expecting 3rd lot of bad news as we normally do..

[thefod] 17/10/2006 10:29

Dogs Dinners I was listening to 5 Live last night and they had a nuclear expert on and he confirmed your collegues opinion. However he went further saying that the most you can expect from these is 35 years and then they become a £1 billion liability to decomission and there are 7 approaching this age.

[dogs dinner] 17/10/2006 09:29

A colleague of mine who has worked with the IAEA said the stated lifetime for such pipework (an hence the plant lifetime) to be 30 years.
Hinkley 31yrs old and Hunterston 30yrs old.

In engineering terms cracking is caused be creep damage. Normal creep properties are determined for 200'000 operating hours. At 8'000 hr a year operation that is 25yrs. Allowing some down time in that period brings us to the plant life expectancy of ~30yrs. It is not possible to just replace the cracked pipes and weld them to the existing 30yr old stuff. Basically the job requires the whole lot replacing not a bandaid. Usual procedure should be decommission.

Just an engineering perspective
DYOR
DD