Centrica Share Discussion Threads

[mercer95] 27/4/2019 21:09

Royston Wild, sounds like the name of some home brewed cider, those guys chop & change their opinions all the time usually depending on their positions IMO Lets see what next week brings.

[discodave4] 27/4/2019 20:49

Royston Wild 27/4/19:"A battered balance sheet - Some stocks can get away with poor dividend cover, but Centrica isn't one of these. Years of persistent earnings pressure leaves the balance sheet in one hell of a state. And you shouldn't just take my word for it, this month Standard and Poor's cut the company's long-term credit rating to BBB (with a stable outlook) from BBB+ (with a negative outlook)."

[discodave4] 27/4/2019 20:26

wally,If you think this is going to get to 120 in 2-3 months then I think you may need to reconsider your target, just saying, but good luck with that positive thinking!........until there is political stabilisation and the threat of Corbyn getting in has been quashed for good then I don't see this going up much at all, time will tell and all we have at the moment are personal views and gut instincts.All the best.

[wallywoo] 27/4/2019 20:15

Of course there is risk. However,1. Pbt heavily aligned to oil prices and they are 50% up in the last 3 months.2. share price has not been at these levels for 21 years, and it was a major support then.3. Buy when there's blood on the street and no one believes.4. Balance sheet is solid despite especially at this valuation. 5. buying before such a big dividend makes the risk less. Most agree this is not a value trap scenario. Let's see

[n73] 27/4/2019 18:53

You made a very good point. Smart person.

[wallywoo] 27/4/2019 18:49

It's always a personal target when you are investing that matters. Buy now sell in 2-3 months for 120. Roughly 25% return with dividend for minimal risk. IMO

[discodave4] 27/4/2019 17:45

That's Hi Wally (bloody auto correct!).

[discodave4] 27/4/2019 17:45

So wally,It's not about whose right or wrong, it's about hitting your personal target - which I have already but will stick and see how it goes. IMO this isn't too far off bottom so good luck to you, but completely disagree about Spirit. Yes poo has gone up (fully aware of that as my PF is 30% Oiler's) but they are going to reduce their 69% stake in Spirit and production has not been brill.All the best though.

[mercer95] 27/4/2019 16:56

The dividend gets paid out of retained capital so don’t get fixated on balance sheets, a good trader always looks ahead, the road to salvation, never behind, the road to ruin, Centrica & the share price will rise again, next week will be better GLA

[wallywoo] 27/4/2019 16:33

What has dividend cover got to do with the balance sheet. You said this is not worth 50% of it's current valuation because of this. Explain?

[turvart] 27/4/2019 16:25

Wallywoo, Mercer95,
Come on then entertain me why CNA only run a 0.28 dividend cover and where is Mr Conn going to get the 72% from? I suppose he’s going to sell more holdings in Spirit Energy 😂😂😂😂8514;

[mercer95] 27/4/2019 16:18

Balance sheets are always changing Turvart, I averaged down yesterday, the buyers will return, they always do,next week will be better here for the longs IMO

[wallywoo] 27/4/2019 16:13

I have a accounting degree. Tell me what on the balance sheet tells you this is over valued? Because I don't see it, and neither do any analyst?

[turvart] 27/4/2019 16:10

Come on be serious, learn to understand accounts then have a sensible argument on ADVFN.

[turvart] 27/4/2019 16:05

You just don’t get it do you? The balance sheet is that bad CNA won’t be in the FT 100 very soon and then it will be in the madcap area and not many will take interest!

[turvart] 27/4/2019 15:59

Wallywoo,
We will see’s who’s right, because with a dividend cover of only 0.28 then it’s like an ice cream van coming on your estate and giving all the kids a free ice cream because Ian Conn is a nice bloke 👍

[wallywoo] 27/4/2019 14:50

I wasn't mocking just disagree

I agree the divi is unsustainable. But I disagree that there is no value in the balance sheet. £29b turnover, over a £1b in profit. £2.6b net debt does not look too massive at this valuation. High oil prices ensure this year will be ok. I think the update next month will reflect that. At a market cap under £6b, this now looks undervalued.

However 5 years of a declining sp, Will lead to lot's of comments like yours. They are just not correct at this valuation. I am effectively buying at less than 97p per share and feel comfortable with that entry point. Let's see who's right

[turvart] 27/4/2019 14:06

Wallywoo,
You may mock DD but you say lets see who is right.

You need to understand balance sheets, you seem to think because CNA are paying an 8p divvy that everyone are going to be queueing up like penguins for Cna shares, I think it will be nearer to 80p than 120p because CNA only have a dividend cover of 0.28, so where is the 72% coming from? Out there cash flow or sell more assets.

You may ask, why do I take so much interest in this stock? Simple answer it's not the stock it's comments like yours that amuses me to keep reading this thread, I just can't believe.
If I was offered this stock for 50p I still wouldn't buy them, that may well be a bad decision on my part, but I won't buy stocks with balance sheets like CNA.