Centrica Share Discussion Threads

[muffinhead] 10/10/2017 07:44

thereabouts

~profit margin of 2% of revenue may give eps of 10p ish; dividend rebased to 6p to allow debt repayment and 3.87% dividend at 155p in line with the market

Centrica is being Tescoed

[muffinhead] 10/10/2017 07:28

Between 2009 and 2013, Ofgem allowed the energy suppliers to hike prices to pay for climate change issues and support alternative wind/solar projects

With price caps, will centrica shareprice chart correlate more closely again with natural gas price?

[jpjohn1] 09/10/2017 23:08

Yes most company's edge up a week or so before div, CNA seems to be going the other way, hopefully it will go up in the next couple of days

[diku] 09/10/2017 22:02

Could do with a cold snap soon...still very mild out there..get the oil price moving higher...think this will open around 169p on ex divi...punters buying lately for the divi will be locked in..

[jpjohn1] 09/10/2017 21:34

I will be the first to hold my hands up on CNA. I made a bad call on buying far to high in insight. In quite heavy with them, just have to be patient collect div and wait for them to go back up like a lot of other investors. It just goes to show you don't matter how long you have done investing and for me millions I have bought, the best of us get it wrong sometimes !!

[wllmherk] 09/10/2017 21:01

The CEO will know exactly what levers to pull in order to maintain profits and shareholder value, they could simply phase out some of the better fixed rate tariffs. I had a look at some of my old records and I bought CNA around 2009 for £2.34p, sold at £2.40p.


wllm


ps-Hoping we don't see these levels again.

[essentialinvestor] 09/10/2017 20:55

He can't trade on any market sensitive information not already in
the public domain.

[careful] 09/10/2017 20:16

Being optimistic about the CEO purchase.
We wonder if he has been approached already about the nature and scope of price caps.
He must have an indication of what is likely to be applied.

Wishful thinking possibly, but todays purchase was a good sign.

[careful] 09/10/2017 20:02

That moment in the film Wall Street when Bud Fox arranged a share price surge, then collapse.

Poor old Nick Leeson bankrupted Barings by thinking his aggressive buying could drive the Japan Nikkie higher.
Bad luck, an earthquake stuffed him.

[careful] 09/10/2017 19:54

Luckily I have made good money over the years going opposite to Goldman's 'conviction sell' advice.

Way back they had a sell on SVT at below £10. I bought, then sold out at £15 not long afterwards.(today £21.50)
They said sell GLEN at below £1 less than 2 years go. Today GLEN are over £3.50.
Investec went one better and said that GLEN had no value at all, worthless.

[nortic 007] 09/10/2017 18:44

I think they called Brent $10 . Basically when something's down they love to kicker it just for the final tick down and then moon. Studied their form for many years. Don't think they have the same presence as in previous years.

[nortic 007] 09/10/2017 18:36

Goldman Sachs notes are notorious for being wrong. To many conflicts of interest . No such thing as Chinese Walls.

[essentialinvestor] 09/10/2017 17:42

He is a rich man, it's more than pocket change though.

[gaffer73] 09/10/2017 17:40

And there is the 'heard from the management' I was talking about. 100k is a significant amount, enough to dispel any worries I have(long term).

[essentialinvestor] 09/10/2017 17:37

Draft legislation this week.

Thought the post XD selling may provide an opportunity, just guesswork.

[justiceforthemany] 09/10/2017 17:34

3%-10% is a large range but even at 10% is less than the market has been pricing in to the share price - probably why the CEO is buying at these prices. Taking a mid range of that figure gives a current P/E of just 11 and dividend cover of 1.3x

[essentialinvestor] 09/10/2017 17:34

Admit to being a little tempted today, but held off.

[philanderer] 09/10/2017 17:25

fwiw...

Centrica was under the cosh as Goldman Sachs cut its price target on the sell-rated stock to 163p from 184p and reduced its earnings per share estimates.

"Our estimates assume an additional £7.5/customer profit margin above what is allowed under the prepayment cap for both electricity and gas to account for higher risks in standard variable tariffs. Under these assumptions the most exposed as a percentage of 2016 EBIT are Centrica(circa25%) and SSE (circa 7%). As result we reduce our EPS estimates between 3-10% for Centrica."

[susiebe] 09/10/2017 17:25

Significant news today re CEO share purchase.Sure he will be aware of details re price cap so message is loud and clear ,time to buy in/top up imo

[justiceforthemany] 09/10/2017 16:49

Centrica CEO signals confidence with share purchase

[justiceforthemany] 09/10/2017 16:48

Centrica CEO signals confidence with share purchase

Centrica’s chief executive Iain Conn, has spent more than £173,000 buying up shares in Britain’s biggest domestic energy supplier less than a week after its stock was sent to 14-year lows by UK prime minister Theresa May’s pledge to legislate for a cap on household energy bills.
Mr Conn bought 100,000 shares at £1.73 a share on Monday, according to a stock exchange announcement.

Analysts believe Centrica stands to lose the most from a price cap on the most common energy tariff in the UK, known as the “standard variable tariff”.

Mrs May’s announcement, which resurrected a pledge made before the June general election to protect households from “rip-off energy prices”, has triggered fresh talk that Centrica may have to cut its dividend, although Mr Conn has previously sought to reassure that the company has other “levers” it could pull, such as further cost-cutting,to mitigate the effect of a price cap

[nortic 007] 09/10/2017 16:28

I might have to see a shrink :)

[essentialinvestor] 09/10/2017 16:15

Nortic, that takes a lot of guts, luck with that.

[susiebe] 09/10/2017 16:07

Interim dividendXDiv 12th OctRecord date 13th OctPayment date 30th Nov