Centrica Share Discussion Threads

[kulvinder] 12/6/2018 16:32

Just could not touch £1.50, tad short maybe tomorrow as people realise two upgrades within a week.

[mitchy] 12/6/2018 15:44

High oil prices, price cap appears not to be a problem now...happy days. Just need to hear old customers returning to BG and we are golden.200p+

[masterblaster] 12/6/2018 15:29

A slight dip then imo another push for £1.50 by the close.

[justiceforthemany] 12/6/2018 14:56

A merger with a foreign company/bid target/shareholder return from EDF Nuclear Stake all possible.

[csalvage] 12/6/2018 14:52

1.50 would be a good end of the day for me being on holiday in Barbados so everything is good.

[timmy11] 12/6/2018 12:42

12 Jun at 12:37

Jefferies upgrades Centrica to ‘buy’ as it claims Ofgem’s price cap won’t be “highly punitive”
Share
09:07 12 Jun 2018
Analyst Ahmed Farman reckons Ofgem is likely to adopt a “balanced approach” when it brings in its new price cap on standard variable tariffs
british gas bill
Farman estimates that SVT prices will be capped at £1,110 a year
Centrica PLC (LON:CNA) was the top riser on the FTSE 100 early Tuesday after the British Gas owner was upgraded to ‘buy’ by Jefferies.

One of the major talking points around energy stocks at the moment is the upcoming changes to how much British Gas, e-On et al will be able to charge customers on a standard variable tariff.

Investors had feared how hard regulator Ofgem would hit energy suppliers, but Jefferies’ Ahmed Farman doesn’t think the cap will be “highly punitive”.

£1,110 a year
“Although the primary focus of the cap is the protection of SVT customers, (Ofgem’s recent consultation paper) also references detailed consideration of financeability needs and costs of energy suppliers,” the analyst wrote in a note.

“This suggests a more balanced approach, with low likelihood of a highly punitive outcome.”

Farman estimates that Ofgem will impose a price cap of £1,110 a year – a saving of roughly £75 for direct debit customers – but he expects the impact of this to be “manageable221;.

Away from the impact of the price cap, the analyst also points to the rise in commodity prices over the past few months as another reason for his upgrade.

“With the improvement in commodity prices since February, we increase our UK power, NBP gas and oil prices by c.10% and upgrade our 2018-20 earnings per share forecasts by 10% (+8% to 2019-20 consensus),” Farman adds.

'Balance sheet optionality'
In a final point, he claims the sale of a 20% stake in EDF Energy and the divestment of Spirit Energy – combined £2.9bn – “would strengthen Centrica's balance sheet and crystallise value for shareholders”.

Alongside his ‘buy’ recommendation (from ‘hold’), Farman also increased his price target to 165p (from 140p).

Centrica shares were up almost 2% early on Tuesday to 147.3p.

[mercer95] 12/6/2018 08:54

Even one of the biggest new players, Bulb energy have already had to hike their prices, no such thing as cheap energy unless you’re prepared to chop firewood & collect rain water, some people just like moaning & complaining regardless about anything

[supermarky] 12/6/2018 08:53

Is this to start of the upgrades?

[kulvinder] 12/6/2018 08:49

It is about time the market believed this is worth a minimum of £1.60, instead of this yo-yo of 148 to 144, needs to go over the 150 before that belief starts to come back....

[garycook] 12/6/2018 08:46

12 Jun Centrica PLC Jefferies International Buy 148.20 155.00 165.00 Upgrades

[mercer95] 12/6/2018 08:40

Ofgem giving a wake up call for the smaller energy companies, too many players in the market without the cash flow to hedge against rising/falling commodity prices, a lot will just fade away, good news for Centrica.

[whatsup32] 12/6/2018 08:36

Cna . Doing great today . Well done to holders. If ofgem has finally realised the big six are doing a great job, minnows were in it for a quick buck which didn’t materialise. If that is the case then price caps may no longer be on the table and we can forget about nationalisation.

Should there be an announcement to that effect then we can see utilities flying

[capeview] 12/6/2018 08:31

Is there something in the news to give it this spike, or is it another one of those, lets catch the punters out and cause them to buy and then drop it like a plank again?

[susiebe] 12/6/2018 08:25

Not necessarily.

[supermarky] 12/6/2018 08:23

Yawn. Up 2% today. Down again tomorrow

[diku] 11/6/2018 23:27

Consolation is it stays above 140p...

[whatsup32] 11/6/2018 16:40

Ofgem to toughen up on new energy minnows. DT source

Good news

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[supermarky] 11/6/2018 10:59

Boring as hell to watch at the moment

[whatsup32] 10/6/2018 18:42

Diku ,

What you say is very true but there is another side to this investment lark. I have bought shares many times to see them go up a few percent then drop by 5-10% locking me in for a few years. How I wished I had taken a profit .

Other times Berkeley been an example. Increased in value so I took a profit only to see it go from £26 to £42 . When I bought them they were yielding 9% and secured dividends for the next 4 odd years . Also Ferguson, Tui where I took a small profit only to see it go up further

But then I took small profits in KGF, TALK,SSE,CNA,VOD,SVT,PNN,NG. and in these cases I was glad

[jpjohn1] 09/6/2018 18:49

Yes it is luck, how I have made most of my money is buying a none stamp duty share at a reasonable price ( nearly all on high at the moment ) wait for it to have a bad day to start with, then buy and sell on the fluctuations on up and down and try to sell at the end of the day, does not work all the time, I think I have been lucky in the past. This is defiantly not for everyone and I'm not recommending it, but it worked for me

[diku] 09/6/2018 18:32

All too often you buy a share (A) it goes up...you sell it for a small profit...and then you buy another share (B)...only to see share A keeps going up and share B goes down and you are locked in...trying to outsmart markets often never works...best to buy something that offers value on price fall and hang on to it for at least 3 - 5yrs...No Advice Intended..

[whatsup32] 09/6/2018 18:10

Hi guys .

After 30 odd years of buying and selling shares I figured it’s 80%luck ,15% timing (luck), 5% smarts.