Centrica Share Discussion Threads

[careful] 25/1/2018 17:44

jpjohn1
You have an interesting strategy with 100% invested in CNA.
That is really focus.
I presume you hold some uninvested cash.
You could have a great year if you hold your nerve.

I never hold more than 8% in a single share.
Target cash 30% min.

The crashes of 2003 and 2008 were painful.
They seem to come out of the blue when least expected.
Makes me defensive which can cost in a rising market.

[sux_2bu] 25/1/2018 17:38

Still more downside to come. Hold.

[jotoha2] 25/1/2018 17:32

Come along now , it bounced of 134 , nice!

[jpjohn1] 25/1/2018 16:15

Yes it's hard for me not to look share price all the time. I use to buy and sell with only owning some shares 10 minutes at a time.The main thing was it made a profit each time. I except I am just an investor now with just holding CNA only ( sold Lloyds now, and had a good profit.) they are my favourite share and I have made a lot of money with them in the past. Going back to CNA sometimes we have to ask ourselves why we bought them. If you read the latest post from Motley Fool it is a good reason why.PE 9.9. Trades 6.1 times its average earning over the last ten years. If we took the money we would get very little interest in the bank.

[strutt12] 25/1/2018 16:08

Is this going to be a 10% yielding stock??

[careful] 25/1/2018 15:51

Ian conn was on the main board of BP for 10 years.
he was CEO BP downstream for 7 years.

The Spirit operation is a serious element of the business mostly owned by CNA.
Hoping Conn's pedigree will help him to make a success of this operation.
Long term this has potential.

The city and the markets have crushed the value of CNA's whole operation.
We need some detailed information.
Hoping Feb update will reassure.

there could be a very sharp rebound if update is better than assumed.

[careful] 25/1/2018 15:21

Still holding here.
It is hard to see what the board can say.
Running a company as large as Centrica is a log term task.
Hoping they are just getting on with it.

It is surprising that the share prices has collapsed so far.
But other regulated utilities such as NG. SSE BT are being crushed.
We are not alone.

we should look away for 12 months and not bother to check. But it is difficult.

[capeview] 25/1/2018 14:52

JP, Don't worry, I'm not bowing out just yet. Just need to go do something else. Clean the house, wash the car, do some food shop, sweep that paddling pool that has appeared on our patio from all the downpour we've had the last few weeks. lol

[jpjohn1] 25/1/2018 14:49

I would loose a fortune capeview. Like I said people panic, if a company drops quickly. I have said many times here a lot of the problem is Bod. If you give no information about what's happening investors panic and sell and they can loose a fortune.Im quite happy and sitting it out. It might take a year or two, nobody knows but you might kick yourself if it gets good results and goes northward quickly. Each to there own you have to do what's right for you

[capeview] 25/1/2018 14:47

Well, go and get the kids shortly, so they'll be screaming the house down. Not sure that will be more or less stress, but at least a distraction.
Going for a nice sports massage over the weekend, so hopefully start next week feeling nice and refreshed.

Lets just hope everyone that is holding gets a nice big pay packet at the end of all this stress. Well, we can but hope. ;)

[gregpeck7] 25/1/2018 14:41

At least uen just went up again. The destruction of value here is off the scale.

[losses] 25/1/2018 14:39

I think a retest of 133 and should bounce back

[capeview] 25/1/2018 14:38

Thanks JP. I have done that from time to time and definitely eases the stress.

Go back to watching groundhog day for a couple of weeks. lol

[rathkum] 25/1/2018 14:34

Why 8% yielder Centrica plc isn’t the only dividend stock I’d consider today

Roland Head | Thursday, 25th January, 2018 | More on: CNA FOXT
Image source: Getty Images.

One of the largest positions in my personal stock portfolio is energy and utility group Centrica (LSE: CNA).

This is a contrarian position at the moment, and is not without risk. The group is battling against falling customer numbers and faces tough competition in the UK and in North America. There’s also the risk of tougher regulatory price caps if Parliament approves the necessary legislation this summer.

However, I think these risks need to be viewed in context. British Gas remains the largest supplier of household energy in the UK, with a vast installed base of customers and equipment. Management is working on ways to improve the appeal and profitability of its customer-focused businesses, and I see no reason why this can’t be successful.

I’m also encouraged by the recent spin-off of the group’s oil and gas business into a new joint venture company, Spirit Energy. This move should provide a future stream of dividends for Centrica without requiring further funding.

Overall, I think the group’s turnaround plan is credible. I’d also suggest that the low valuation of the stock could provide an opportunity for value investors.
Is the 8% yield safe?

In November’s trading update, Centrica’s management said that forecast operating cash flow of £2bn+ means that it expects to be able to maintain the dividend during the group’s turnaround.

It’s clear to me that the dividend remains a priority for the board. I think there’s a good chance the payout will be maintained, but I’m willing to risk a cut. After all, a 30% cut would still provide an above-average yield of 6.1%.

In any case, Centrica’s 2018 forecast P/E of 9.9 looks cheap to me. And it’s also worth noting that the stock currently trades on just 6.1 times its average earning over the last 10 years — a classic value indicator. I remain happy to hold ahead of further news.

[jpjohn1] 25/1/2018 14:33

Yes capeview, worrying, try to keep in there. I'm not panicking. There does seem a pattern here at 10 or 11am it seems up quite well then by the end of the day we have lost 1 -2p. If this get you down I find the best thing is to walk away from the markets for a week or two. If I do that I don't feel any stress at all. SSE and NG charts are similar to CNA.

[nortic 007] 25/1/2018 14:31

Somethings coming without a doubt.

[nortic 007] 25/1/2018 14:29

There's been nothing in the dark pools either . If you were doing genuine business you'd be placing order plus advertising your trades.Hitting the SETS board is a good way to conceal yourself from prying eyes.That's what insiders do!!!

[nortic 007] 25/1/2018 14:26

If you look at all the other utilities they are moving in tandem. Makes me think that maybe the Government might be taking a tougher stance and the news has leaked. The intra day graph has a similar pattern over the last 6 trading days.

[capeview] 25/1/2018 14:23

Thanks Nortic. It's a dogs dinner this share at the moment, but there is only so far your nerves can hold before you eventually have to take the bullet and either stick or fold.

Lets just hope that the results do it justice or it could well be heading lower.

I know I don't have as much as some people here, but even so, it's still a shaft of a share right now.

[gregpeck7] 25/1/2018 14:20

What a dog this is dragging down my virtual portfolio.

[nortic 007] 25/1/2018 14:20

Spoke to my guy and UBS are advertising 1m on Bloomberg today and Wins are top of the leader board with over a million. He has only seen retail buyers today as well as yesterday.My only thought is if something is going on you're not going to advertise it.Wish I could tell you more but alas no.

[capeview] 25/1/2018 14:01

Wow, go away and do some washing up, come back to find we nearly hit £1.34 as well.