Centrica Share Discussion Threads

[the logician] 22/3/2019 09:38

10% yield is very attractive compared to putting money in the bank.

what is the value of a 12p annual dividend stream? add some growth.

hxxps://www.investopedia.com/terms/g/gordongrowthmodel.asp

[338] 22/3/2019 09:12

Why do you want to keep owning CNA at 120p to get 8.4p dividend in May whe the share price might go below 110p afterwards?

[338] 22/3/2019 08:49

How can share buy back drive CNA share price up? It has been done in the past (a £500 million share repurchase programme) and look at the share price now. Positive impact of share buy back won't last long.


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the logician21 Mar '19 - 17:36 - 16468 of 16496

absolute tosh. cash flow was very good last year. if they can achieve that they could maintain the dividend and do a £400m share buyback as well. we know cash flow will be a bit weaker this year. so they should maintain the dividend then start a £400m annual share buyback in a couple of years.

[portside1] 22/3/2019 08:32

the only true fact about cna is they are top heavy , the board rom needs to be cut by 50% then cut the number of managers who do nothing for the company

conn is not the man to run this company

[discodave4] 21/3/2019 22:10

My apologies logician, missed your post about £551m for dividends, I stand corrected, just found it myself.

[discodave4] 21/3/2019 22:07

Hi logicianYou mentioned the other day that there was debt repayment, I posted up that I thought it was £143m, it wasn't:"The Group also incurred one-off transaction costs within net financing costs of GBP139m relating to the debt repurchase programme completed in 2018."So apologies, was £4m out.As for dividends paid, I know how much they paid do you?.They will cut (by that I mean reduce) the dividend IMO. As said before we just have a different view but you don't have to snipe because of it.One thing we do agree on however is that their cash burn is ridiculous, or in your words "silly" (check out the cash flow statement, nothing I've posted is false, or not deliberately so anyway).Good luck

[nortic 007] 21/3/2019 20:08

Wow!!!!!I'm stuck between a rock and a hard place. I'm agreeing with someone I don't like and disagreeing with someone who is long and wrong like myself!!!!!I'm a CNA holder " Get me out of here"!!!

[the logician] 21/3/2019 20:02

16489-now a true shorter turns up, spews complete tosh.

the dividend cost is in fact much lower at £551m because many investors take the scrip option. this amount is easily funded from cash flow and there are plenty of options to trim costs from the £30bn revenues to improve the dividend cover.

[nortic 007] 21/3/2019 19:59

Don't always see eye to eye but I agree at the moment. I think it's prudent and will pay in the long run.

[discodave4] 21/3/2019 19:52

They will cut IMO. 10% yield (£650m) is suicide.

[nortic 007] 21/3/2019 19:38

As you can tell I haven't gone for that run yet but I agree with the confidence about adding. I did buy another 45/- here but will now hold fire. I will add at the right level and won't hold back. As Steve Sedgwick says" never buy on the first profit warning". Do normally come in 3's and I thought that was the case but maybe I lost count. I'll only add if they drop 20% because the recent lack of movement has made me nervous.

[careful] 21/3/2019 19:25

£270k is a big chunk of change.

I have a decent stake but nothing like that.
Don't you worry about those 200+ new suppliers.
So easy to switch.

I would add if I felt more confident.

[the logician] 21/3/2019 19:01

cutting the dividend should be the absolute final straw.

[nortic 007] 21/3/2019 18:55

"the only reason to call for a dividend cut is if you are short".Grow up!!!

[nortic 007] 21/3/2019 18:53

I've got £270,337.50 worth.I'm not talking my book but being realistic my friend......I'll happily send you the contract notes if you like ??

[the logician] 21/3/2019 18:50

the point is, based on management cash flow target, there is absolutely no need to cut the dividend.

it is quite possible they will get through this without cutting and the share price will rally accordingly. a dividend cut could also potentially weaken managements negotiating position with the regulators.

the only reason to call for a dividend cut is if you are short.

[nortic 007] 21/3/2019 18:47

Logician I've got 225/- shares but I'm just being realistic. I'll get an £18,900 divi soon.I think you should read my previous posts and then you'll realise.Now I'll go for that run

[whatsup32] 21/3/2019 18:40

the logician..

Conn did the right thing by allowing customers to drift to internet minnows as they were not only NOT leaving a profit but incurring cost. His point is validated by the fact so many minnows have gone bankrupt.

His idea of pushing intelligent energy (connect homes) may not bare fruit immediately but will do so in the future,

Selling Nuclear is excellent idea and would hope of some progress. It’s been on the market a few years now.

Unfortunately this is a high turnover low margin business now so high turnover doesn’t equate to high profit.

Can we keep it civil , there is only a few of us here so no need to talk down to each other

[nortic 007] 21/3/2019 18:34

The tough decision is to cut. I'm afraid if people think a 10% yield on a stock is the norm and won't except say 7 or 8 % is simply insane. Do you sell all the furniture to keep up a lavish lifestyle !!??Anyway we both want to see them up in the long run....I'm now going for a 15k run so we'll pick up later.

[the logician] 21/3/2019 18:25

dividend cut would give a negative message that management have chosen the easy way out rather than make tough decisions.

[the logician] 21/3/2019 18:23

absolute tosh. you clearly are a shorter playing a game of deception. there is a mass of fat in this business that can be trimmed. see post 16415 for explanation.

[nortic 007] 21/3/2019 18:14

I'm afraid your thoughts mirror Mr Conn who I believe is in denial . It's a strategy that simply isn't working. Where do you draw the line in cutting costs to maintain the dividend. If you can't afford it then reduce it. It's just like running a family. I things get tough then things have to go.

[whatsup32] 21/3/2019 18:05

Would have though all good management would keep an eye on costs regardless.
The things that are in CNA’s favour are minnows going under , I expect that will cut down on attrition. Goverment no longer showing interest in privatisation. Not sure if pound going down against US Dollar will be positive

[the logician] 21/3/2019 17:56

dividend is maintainable with £1.8bn - £2bn cash flow this year. there really is no need to cut the dividend unless there is another profits downgrade.

maintaining the dividend will keep the management focused on trimming costs. cutting the dividend and they will decide they do not need to.