Centrica Share Discussion Threads

[nortic 007] 26/3/2019 18:52

Not a site to be taken seriously I'm afraid. Thanks to the guys for finding it anyway. Appreciated as always.

[mroalan] 26/3/2019 17:31

Turnaround potential

"While Centrica has continued to disappoint over recent months,"

months,am i missing something here?

[jpjohn1] 26/3/2019 15:17

From the Fool. While the buy-to-let sector has been a reliable source of income for many investors over recent decades, a number of FTSE 100 shares may now offer superior income returns. One example is Centrica (LSE: CNA). Its 10% dividend yield is considerably higher than the yields available through taking on a buy-to-let, while it could offer good value for money at the present time.Of course, it's not the only dividend share that could be worth buying today. Reporting encouraging results on Monday was a FTSE 250-listed stock that could deliver high total returns in the long run.Improving prospectsThe company in question is investor in UK industrial property Hansteen (LSE: HSTN). Its full-year results showed that it is making good progress in delivering on its strategy, with the size of its portfolio continuing to fall as it believes now is the right time to crystallise value created before the cycle turns.Its like-for-like property valuation increase was 6.5% for the year, with 874 new leases or renewals at 10.4% ahead of their estimated rental value. It generated a significant profit on disposals during the year, with capital being returned to shareholders.With Hansteen having a dividend yield of around 6%, it appears to offer an impressive income outlook. It believes there are still opportunities for sales in the near term, but over the long run its management platform could allow it to capitalise on the long-term growth potential offered across the UK commercial property sector. Therefore, now could be a good time to buy it while it trades on a price-to-book (P/B) ratio of around 0.9.Turnaround potentialWhile Centrica has continued to disappoint over recent months, its current valuation suggests that it may offer a wide margin of safety. As mentioned, it has a dividend yield of around 10%, which makes it one of the highest-yielding shares in the wider utility sector. This suggests that investors may have accounted for the ongoing challenges faced by the business. They include political and regulatory risk, while the restructuring taking place across the business may also be unsettling investor sentiment to some degree.Although it could be argued that Centrica has offered turnaround potential for some time, and has thus far failed to deliver, its recent update suggested that progress is being made in cost reductions. They are helping to underpin net debt levels, while new customer-facing capabilities in its consumer and business divisions could help to catalyse growth in the medium term. Divestments may also help to refocus the business on its best-performing areas over the coming years.Since the stock has a dividend coverage ratio of 1.1, dividend growth may be subdued in the next couple of years. But with the company appearing to have turnaround potential and its yield being high at the present time, it could offer high total returns in the long run.

[essentialinvestor] 26/3/2019 14:42

Just to clarify and as someone mentioned, EPS consensus now appears below
10 pence a share, it was a couple of months since I last looked.
Point is the same, the share price and earnings have fallen largely in tandem.

[wendsworth] 26/3/2019 14:09

DiscoDave4 : Apologies..missed out the 'wrong' between 'nothing' and 'with'!!

[wendsworth] 26/3/2019 14:07

DiscoDave4 : Nothing with that. Are you able to respond to my previous post regarding your CNA research and possible corporate action ?

[discodave4] 26/3/2019 13:30

I'm trying to hedge my long PF with shorts......and also using spread bets (leverage) to go long on non div companies, leaving me with more cash reserves for any bargain hunting.

[338] 26/3/2019 13:18

less than 18p to become a penny share...

[wendsworth] 26/3/2019 12:34

mitchy : I did well with LLOY and BARC in lead up and post recent results but consider CNA to be a much 'safer' haven. The alarm bells are ringing as to a market correction or even 'crash'. Personal experience over many years has taught me that ultimately the utilities are a sensible place to be during extensive market downturns. CNA is currently my sole investment.

[mercer95] 26/3/2019 10:29

Any sort of profit in this market is a proper result mitchy so good hit 👍 I’m as close to banking a profit as Danny Dyer is to winning an Oscar at the moment, tough market to be long in,every sector seems to be suffering headwinds of some sort, see what next month brings.

[tim 3] 26/3/2019 10:13

Woodford, who I should point out I am no longer a fan of following some of his poor decisions like Capita, however he did make some good points recently.

Basically he was saying we are in a momentum driven market where valuations are ignored and those doing well just keep getting bought.

As we all know markets run in cycles and previously the value model has worked well for long periods of time.

Hopefully we will be approaching a change in cycle soon!

[nortic 007] 26/3/2019 09:56

They get pushed about by the bullies and the squares in the school play grounds.Not a good combination but a change in the cycle could help.

[mitchy] 26/3/2019 09:56

I banked (scuse pun) my profits on lloy last week but am holding cash . Was tempted yesterday at 117p but Brexit debacle is scaring me.The banks might fall off a cliff with the wrong news and I want be ready to do a little bottom fishing.Good Luck.

[mitchy] 26/3/2019 09:52

It's the same every single day. Any upside is punished by some stealth selling. Every frigging day !

[careful] 26/3/2019 09:38

Home charging could become a significant domestic electric market.
Also the electric power required from power stations to enable charging will be large as the full page article in last weeks Sunday Times on Shells plans to move into this space indicated.

There are great opportunities and risks going forward for CNA and we hope that Conn, an ex BP executive has the ambition and foresight to make the right calls.

[wendsworth] 26/3/2019 09:11

susiebe : Likewise.I'm out of the banks and doubled my CNA holding yesterday.

Nortic 007 : Our day will come !

DiscoDave4 : Although we have diverging views , as to the short to medium term, I thank you for your informative posts. You've clearly undertaken quite a bit of research . Regarding the latter ...has your 'drilling down into the detail' revealed possibilities as to corporate activity ? Apart from 'The hardy annual' of Shell there is a rumour that the Chinese might be interested.

[666james] 26/3/2019 08:39

dead cat bounce

[jpjohn1] 26/3/2019 08:27

Agree susiebe, think this will be at the 130p mark on the 8th May with 8.4p div

[susiebe] 26/3/2019 08:15

Very easy to be pessimistic here, but CNA still feels a safe haven for me so happy buying a few more.

[diku] 26/3/2019 08:07

120p support gone so new lows to 99.9p looming...120p will now be resistance...

Don't be surprised if Con steps down with a golden goodbye..

[masterblaster] 26/3/2019 08:02

But cna down

[discodave4] 26/3/2019 07:59

Currently FTSE +8.5 points.

[mitchy] 26/3/2019 07:56

Brexit , world recession looming, electric cars. What price cna ?

[jpjohn1] 26/3/2019 07:56

Morning chaps, I have the FT 100 to start up a touch at about +15 with about 5 mins to before opening.CNA finished a touch high across the pond , after we closed. Let's hope for a good day here

[gaffer73] 26/3/2019 07:34

I agree totally. I wouldn't vote for any of the politicians in the running at the moment. They are all spineless, to concerned with being PC and trying not to upset people.