Centrica Share Discussion Threads

[whatsup32] 26/6/2018 19:35

ukinvestor.com has a nice article by John McDonnell and his plans for the U.K. economy. Main part is the claim he is closer to business then the Tories and no mention of Nationalisation or the Utilities

I thought Nortic 007 would enjoy the article as he is such a fan of J.McDonnell :)

[whatsup32] 26/6/2018 18:54

Hi Jp. Thank you for the info. Housing sector seems to be motoring state side (report today). Their main operations are there. Their finances are top notch. The only thing that concerned me and as you pointed out is the share price

I may sell my SSE this week and take another look at Ferg, Glen and possibly Vod again which is hitting lows

Having said that , there is no point planning long term in this market. I have no idea where the market will be tomorrow, next week or month.

Thanks

[jpjohn1] 26/6/2018 18:00

Hi whatsup, FERG are nearly on a highs at the moment, I've always been a bit weary when they are at the peak. I use to get all the inside info on them what was happening, my wife worked at head office at the time it was Wolseley then) the good news is there is no stamp duty on this one, good luck with choice :)

[jpjohn1] 26/6/2018 17:36

At least we hit 160.4p today, it's a long time since we were there. Dropped a bit but at least it was up .6p today, keeping fingers crossed it will be in the 160s by Friday :)

[skinny] 26/6/2018 16:33

Still waiting for 160.

[whatsup32] 26/6/2018 16:29

Is it getting more difficult to read the direction of the market now days. I don’t know if USA is going to be 500 up or 500 down. And naturally where they go we follow.

Do any of you have views on FERGUSON.

[nortic 007] 26/6/2018 16:20

Hope so mate. It's better than what it was.

[jpjohn1] 26/6/2018 16:01

Well done Nortic, we will all get there sometime :)

[whatsup32] 26/6/2018 15:04

1360 seems to be the top with SSE. If states has a decent push in the next hour then we may get another run past 160p.

[nortic 007] 26/6/2018 14:59

I think I just called the top !!! :)

[whatsup32] 26/6/2018 14:26

Well done Nortic. Beers are on you:)

[nortic 007] 26/6/2018 14:20

If I include the 12p div

[nortic 007] 26/6/2018 14:20

I'm nearly level :)

[whatsup32] 26/6/2018 12:51

Hello 160 :)))

[mercer95] 26/6/2018 11:23

That 160p level may prove to be a hard nut to crack, still confident it will happen just wouldn’t be surprised if we see a pull back first, profit taking & general jitters in the market, just my opinion, still long here

[supermarky] 26/6/2018 10:28

We need a happy gif skinny.

[supermarky] 26/6/2018 10:27

The force is strong with this one.

[jpjohn1] 26/6/2018 09:22

Hopefully we will see this in the 1.60s by the end of the week here chaps :)

[master rsi] 26/6/2018 09:09

Holding above 158p so far, but looking good for an assault to 160p, as the Market is a bit rosier this morning

[master rsi] 25/6/2018 23:25

Credit Suisse ups target for Centrica (CNA), says dividend more sustainable
Mon, 25th Jun 2018 16:57

(Sharecast News) - Analysts at Credit Suisse marked up their target price for shares of Centrica on Monday, from 175p to 185p, telling clients that the dividend was now more sustainable and that the scrip might end in 2019 which would be "a major source of upside".

But stressing their call regarding the payout, in Sterling terms, power, gas and oil prices were back at levels last seen in mid-2014.

Significantly, the draft price caps appeared manageable, they also said.

They estimated the price cap for standard variable customers would be set at around the level of the prepayment cap, which then stood at £1,081 per year.

"This appears to be consensus and would be a positive, in that it would allow Centrica to still earn a c5% EBIT margin (vs. 8.1% in 2017A) potentially with less competition; and (3) We do not think the dividend will be cut," the Swiss broker said.

Credit Suisse also estimated Centrica's operating cash flow would grow at a compound annual growth rate about 8% between 2018-20, helping ensure the dividend will be covered by cash.

"We expect the consultation on draft price caps by the end of August. We see the need for further price rises given where wholesale prices are, meaning we cannot rule out further political interference in 2020," it added.

The broker also revised up its estimate for the company's earnings per share in 2020 by about 5% to 16.9p and that for 2021 by roughly 6%, with the former now lying about 24% above consensus.

It also believed the disposal of the upstream unit was possible, which at a valuation of £2.5bn would allow about 20p per share to be returned to shareholders, even as the company deleveraged and paid down its pension deficit.