Centrica Share Discussion Threads

[m4rtinu] 08/5/2014 19:35

Mitchy - wot no graphs today? // or :) Sorry couldn't resist.

[mitchy] 08/5/2014 14:07

It sould have fallen out of bed today but it hasn't (yet). That's very telling. The management have committed CNA to maintaining the dividendat it's current level or better . The market likes that. We'll find out next week the details of the earnings but would I add now? 306 would givea yield of over 6% + . It could rise from here but to be on the safe side I'd also keep my powder dry until then. That said I'm quite happy with my current holdingfrom 333 ( +divi ).

[philo124] 08/5/2014 11:21

Yes, see no compulsion to buy above £3.

[essentialinvestor] 08/5/2014 11:19

Poor update again with yet another downgrade of EPS outlook,
a 2015 increase means little as it's currently guesswork.

[mitchy] 08/5/2014 09:56

An interesting video update on the earnings announcement today. They seem confident the dividendwill not be adversely affected. Shame about the US profits not being all they could have been becauseit was TOO cold !http://sites.merchantcantos.com/companies/c/centrica/ims/#

[wipo1] 08/5/2014 09:43

Very poor performance here, every other european utility is going up and this is going down, I can't see any recovery. short or medium term, I am glad I moved into Gdf Suez and Iberdrola. Also I am looking at a risky Brazilian Utility NYSE:CIG

[jmbtrading] 08/5/2014 08:30

Been a painful ride for Centrica the last 6 months. Feel the pain may continue for a while but there is light at the end of the tunnel. As you say mitchy, 2015 looks to be a much better year so lets hope it is.

At this time with the strong dividend I will consider adding around £3 should it fall that low (which I do not expect).

[mitchy] 08/5/2014 08:27

Nah..this is fun!

[supermarky] 08/5/2014 08:14

Heart in mouth time. Excellent recovey so far. Sharedealing can be an emotional rollercoaster. I am holding tight for the ride. Some of the big shares seem very volatile at the moment

[mitchy] 08/5/2014 08:03

We are already seeing a 3% rise off the lows of the day. At this rate we might be back in the blue by day end!

[mitchy] 08/5/2014 08:00

It's possible that now the bad news is out there brokers notes might start to reflect the 2015 projectedearnings in upgrades? The market moves in mysterious ways remember!

[mitchy] 08/5/2014 07:45

The drop in earnings considering our mild winter is hardly a surprise. Earnings for 2015 , which are good, will be the focus for the market from here on. Possible broker down grades but I'm guessing the 2014 earnings sre already mostly factored in existing notes. We shall see.

[mitchy] 06/5/2014 13:21

A Very positive article from Motley Fool an hour ago...

Centrica Plc's 2 Greatest Strengths

By Kevin Godbold - Tuesday, 6 May, 2014 | See also: CNACPYYY


When I think of integrated gas and electricity company Centrica (LSE: CNA), two factors jump out at me as the firm's greatest strengths and top the list of what makes the company attractive as an investment proposition.

Diverse operations

Despite a difficult trading environment, Centrica turned in a workmanlike set of full-year trading results recently. The firm's financial record looks steady:


Year to December

2009

2010

2011

2012

2013

Revenue (£m) 21,963 22,423 22,824 23,942 26,571
Net cash from operations (£m) 2,647 2,428 2,337 2,820 2,940
Adjusted earnings per share 21.7p 25.2p 25.6p 26.6p 26.6p
Dividend per share 12.8p 14.3p 15.4p 16.4p 17p

British utility providers seem to be having their time in the spotlight of scrutiny just now, but it doesn't appear to be easy for our energy suppliers to balance the books for profitability. Demand for energy is a variable number, influenced by factors such as differing weather patterns from year to year. Downstream energy suppliers also have to contend with fluctuating wholesale prices, which can also make it hard to turn a profit.

centrica / sseCentrica is different to some utility providers because it derives profits from both upstream and downstream operations roughly equally. Last year, based on location of customer, 66% of revenue came from the UK, 28% from North America and 6% from the rest of the world. The firm's downstream operations supply both gas and electricity, as British Gas in Britain and as Direct Energy in the US. Upstream operations, involve oil and gas exploration, production and storage activities; owning and operating combined cycle gas turbine (CCGT) electricity-generating power stations; offshore wind generating operations; and a 20% stake in EDF Energy's UK nuclear power stations.

Diverse operations like that constitute a reassuring feature to underpin an investment in Centrica.

Under-control debt

Some utility companies, particularly those supplying water services, seem burdened with high debt. Maintaining and improving distribution infrastructure is a capital-intensive business. On that point, Centrica appeals because of the way it seems to have debt under control. Net debt is running at around three times the level of operating profits, which looks comfortable. The firm's record on debt looks like this:


Year to December

2009

2010

2011

2012

2013

Net debt (£m) 3386 3569 3653 4397 5312
Net gearing 81% 61% 65% 74% 102%

So, although the absolute level of debt is in a rising trend, gearing levels do not seem to be excessive.

What now?

Centrica's forward dividend yield is around 5.7% for 2015 and the P/E rating is running at about 12. City analysts following the firm expect earnings to grow by around 5% that year, so the valuation isn't excessive.


Dividend income is attractive in a stock market investment, but I'm also keen on a share idea for capital gains from one of the Motley Fool's top small-cap investors.

Sometimes growth comes from within when a company reinvents itself and pursues a different line of operations. That's what seems to have happened with this gem. A strong recovery in profits followed restructuring and the directors predict double-digit margins driving a profits surge in the years to come.

[mitchy] 06/5/2014 08:01

06 May 14 Centrica PLC Societe GeneraleHold 325.60 315.00 315.00 Reiterates

[zeppo] 04/5/2014 13:20

Our own political 'shenanigans' also a factor.

Click on Emily Gosden's article 'Political pressure on Centrica's rating' in today's Sunday Telegraph Business section.

Z

[mitchy] 04/5/2014 08:14

With the sanctions being imposed by the US on Russia which will affect CNA and the Moody's potentialdowngrade I can't see any upside for CNA short term other than the share buy backs.A revisit to 306 looks likely but who knows what good news there is in the pipeline (no pun intended).I still believe it's trading range of 306 - 350 wont change much because of its reliable income stream.But when one adds the political shenanigans a challenging US market , north sea difficulties etcprogress in the short term looks to be sideways at best. Just my opinion. Hope I'm wrong.

[supermarky] 02/5/2014 08:12

Cna is a defensive stock but imo if there is a big market sell off it will go south however will outperform the market.

[mitchy] 02/5/2014 05:46

CNA has risen on the down days due to it's defensive nature. So no worries about a sell off of themarket.

[supermarky] 01/5/2014 09:01

Hello Mitchy, given the market is currently in a general bullish mood at the moment I am hoping cna will add approx 20p to the current price? However the ftse is now at the higher end of range so I am a bit weary of a sell off.

[mitchy] 01/5/2014 08:31

I'm determined to hold until it hits 350, at least. If it falls to 306 I'll add and it falls to 280 I'll add again with last of my reserves.Moody's may downgrade but long term there's lots of upside imo. Like I've said before I'm an investor not a trader...that way lies madness!

[supermarky] 01/5/2014 08:18

It was cna I bought yesterday I should have been more clear.

[supermarky] 01/5/2014 08:17

Hello Mitchy. Still have tesco. Bought yesterday at bottom of upwards channel. It is still only up roughly 10% from lows. Let's see if 330 holds. Target 350 but will pull if it falls south.