Centrica Share Discussion Threads

[susiebe] 07/10/2017 11:53

1.7% is the best I can find for a savings account tying up 10k for a year.Applying this reasoning to my CNA shares I see a good income to be made.The div has got to fall a massive amount for this not to be a good place for my cash.As others have pointed out CNA is not just the Uk consumer market and price cap will be watered down.Also TM wont want to harm UK investments.Market overacts as it always does!

[andyj] 07/10/2017 11:24

I am afraid the political football has been punctured and with it the hopes of many who saw this as a safe income play. The support in the chart has broken and those who want to invest in a company being hounded by the govt will be less aggressive than those looking to get out. There are just too many question marks right now over how profit will be impacted and the affect on the dividend. Expect a drift down to who knows where...And yet, all hope is not lost. It is possible the price cap is as nonsensical as feared and the shares find a new trading range to reflect the impact on profits. If the div remains, I suspect the range will not be far from where we are now. If it is not as bad as the market fears, a long time cloud hanging over the shares will be lifted and the fall retraced. Is it a buy? For me, not yet. Not until the details are known, finalised and digested then announced by CNA in a trading statement.

[supermarky] 07/10/2017 10:34

If the UK currently makes up 50% of profits what proportion of this is from energy supply? They obviously have the non energy supply side like hive, and home boiler care etc and local heroes. Does anybody know? It's not all from the politically sensitive 'rip off' energy supply

[gaffer73] 07/10/2017 08:14

Does anyone know how a price cap would work when the energy prices are not under the control of the energy companies?

[pineapple1] 07/10/2017 08:13

How does this price cap work. If wholesale prices rise ,does the cap follow suit.
If wholesale prices fall ,does the cap follow suit.
I don't quite understand how its supposed to work.
Are CNA expected to supply energy to homes at a loss as a result or is it along the lines that they are compelled to supply at the cheapest available deal in the market.
The falls indicate that there will be almost no profit in energy supply in the Uk
Either that or its not completley understood and a huge overreaction. I doubt unfortunately that the city don't know the effects.
imho

[justiceforthemany] 07/10/2017 08:07

Canada and the West Indies are not part of USA - a little basic Geography...

[losses] 07/10/2017 07:13

Yes but they have looney Trump in charge...

[justiceforthemany] 06/10/2017 23:04

I think some people including the shorters here need to spend some time analysing the financial reports. Have a look at where the revenue is derived from. The UK only contributes 50% of the £24Bn.

Centrica is a well diversified global company with a significant presence in North America as well as having major Exploration & Production activities.

North America people...free of Mrs May and the Tories...and Labour...

[supermarky] 06/10/2017 21:27

If we look at the charts this is doomed. Who the hell is selling though? I bet most invested here will be taking the pain and staying on board. This is a complete basket case. Very strange situation. Most are invested here for reasonable stability in a core defensive which pays a decent dividend. How much of centrica's profits come from the UK energy supply British gas part of the business? If Mr Conn was to go on the bbc news and tell a few home truths I think mps would be made a laughing stock.

[losses] 06/10/2017 19:02

A love back to 200 hopefully

[11_percent] 06/10/2017 18:49

150p is next.

[gaffer73] 06/10/2017 18:44

It would cost everyone a fortune if they nationalised all the energy companies. When has a government run service ever cost less than the private equivalent. Look at the state of the Royal mail when they sold it. Can you imagine the stick the government would get if they had to raise prices!

[essentialinvestor] 06/10/2017 18:26

Depends on legal guarantees given at privitisation surely?.

[11_percent] 06/10/2017 18:19

wilson,

Good post.

[wilsonn] 06/10/2017 18:17

"Corbyn and his comrades cant just waltz into No10 and nationalise Centrica"

Yes they can. Outside the EU, parliament is supreme. We did exactly the same when we nationalised the cottage hospitals to create the NHS. They were just transferred to the secretary of state by a line in the National Health Act.

[11_percent] 06/10/2017 18:15

Corbin will just nationalise it.....no cash.....get real.

[essentialinvestor] 06/10/2017 18:13

It's an interesting point about nationalisation,
heard one comment saying they would not necessarily guarantee ..market price.

As utilities may be killed if a Lab government looked imminent,
It may not be that relevant.

Would think there would also be international law considerations.

What does appear clear is the Tory party are focussing on an energy price cap,
May mentioned it yet again today. In that respect, Corbyn has already won
by completely altering Tory party policy, which is quite incredible.

[justiceforthemany] 06/10/2017 17:39

The Tories do not have to call another election for another 5 years. Why would they - suicide.

Most fund managers/private pensions will hold Centrica - no doubt there is a lot of anger and fury out there at the continued fall here.

On the plus side with a market cap still of around £10Bn there is no danger of an exit from the FTSE100.

Dividend yielding 6.9%; only a collapse in EPS of 20-25% would see a dividend cut IMO.

[wllmherk] 06/10/2017 17:05

I don't know the legalities but, Corbyn and his comrades cant just waltz into No10 and nationalise Centrica. The Gov would face potentially hundreds of law suits.

wllm

[1fox1] 06/10/2017 16:47

porty. Can you see the dividend being maintained?

[mroalan] 06/10/2017 16:22

volume slowing .

[losses] 06/10/2017 15:36

Bought some today will add on further weakness if it happens.