Centrica Share Discussion Threads

[wallywoo] 01/7/2019 08:38

Spirit energy drills a dud:



Surprised this not hitting CNA, though I guess for now the market has decided this fall is over done

[florenceorbis] 01/7/2019 08:02

Investomania



Are recoveries ahead for Vodafone Group plc, easyJet plc, Centrica PLC and Marks and Spencer Group Plc?
Do these shares have turnaround potential? Vodafone Group plc (LON:VOD) (VOD.L), easyJet plc (LON:EZJ) (EZJ.L), Centrica PLC (LON:CNA) (CNA.L) and Marks and Spencer Group Plc (LON:MKS) (MKS.L)
July 1, 2019 Robert Stephens, CFA FTSE 100




Centrica PLC
Centrica PLC

The performances of shares in Vodafone Group plc (LON:VOD) (VOD.L), easyJet plc (LON:EZJ) (EZJ.L), Centrica PLC (LON:CNA) (CNA.L) and Marks and Spencer Group Plc (LON:MKS) (MKS.L) have been disappointing over recent quarters in my view.

Investors seem to be concerned about the financial prospects of Vodafone. The company is investing heavily in 5G and in acquisitions. This may have contributed to its decision to rebase its dividend, which seems to have caused investor sentiment to come under pressure.

I think that the Vodafone share price offers long-term recovery potential. Its decision to enter into partnerships and become a simpler business could catalyse its financial performance, but it may be a gradual process.

easyJet’s financial prospects continue to be uncertain to my mind. Even though fuel costs may moderate due to a lower oil price, overcapacity and a high level of competition at a time when consumer confidence is weak could lead to a difficult period.

Still, with the stock having a P/E ratio of 7, I think it could offer a margin of safety. I also think easyJet’s balance sheet and strong position in the budget airline segment may allow it to gain market share over the medium term.

Marks and Spencer may take time to deliver improving financial performance in my opinion. It is investing heavily in its omnichannel prospects, but I feel that other retailers have got a head start in this respect.

Therefore, while I think the company has a strong brand and a loyal customer base, I feel that some of its rivals have business models that are better aligned with evolving customer tastes. As a result, I view Marks and Spencer as a long-term recovery stock.

Centrica’s uncertain outlook could hold back its share price in the near term in my view. The company faces political and regulatory risks that are showing little sign of subsiding to my mind.

Therefore, while it has a dividend yield that is now in the double digits, I feel there may be better opportunities for me elsewhere. It wouldn’t surprise me if Centrica continues to underperform the FTSE 100 in the short run, although a successful turnaround cannot be ruled out over future years as it seeks to become more efficient under a revised strategy.

[turvart] 30/6/2019 19:07

I wonder if Marmite could take over CNA and do an advert buy marmite in so many grammes and get 10 shares free with CNA, I’m joking of course! Lol

[la forge] 30/6/2019 19:06

Turvart
30 Jun '19 - 18:59 - 19940 of 19940
0 1 0
Well Diku,

Marmite actually did the advert that you either love it or hate it, I hate it but many people love it! 👍

NEVER HAD THE COURAGE TO EVEN TRY IT

HP BROWN SAUCE FOR ME RARELY

[turvart] 30/6/2019 18:59

Well Diku,

Marmite actually did the advert that you either love it or hate it, I hate it but many people love it! 👍

[diku] 30/6/2019 18:18

I can see marmite sales going off the cliff....

[turvart] 30/6/2019 17:26

Adrian,
I wish you all the best in trading, you seem a very nice bloke with a great sense of humour and you are a credit to ADVFN.

[adrian j boris] 30/6/2019 17:12

LOL

I AM AN OPTIMIST

as long as i have carried forward losses, i look foreward to making capital gains

without a huge tax hit during this year

HOPEFULLY 2020 WILL BE A GOOD TAX PAYING YEAR LOL

[turvart] 30/6/2019 17:06

LOL Adrian,

My point was is that I’ve invested in stocks that I think are going to come good, one of those stocks were Circassia pharmaceuticals and I need to choose my words carefully so IMO the CEO is not up to what I was personally expecting so I sold my holding at a loss, it’s no point holding a stock making a loss and blaming the board, sell take the loss on the chin and move on to better stocks, I’m not saying sell CNA because at these levels I think it’s a Hold with a buy rating if it hits 80p, but for someone like Portside1 to brag how many shares he holds and then knock the board is just unbelievable in my eyes and that for me is like buying marmite and complaining it tastes bad.

[adrian j boris] 30/6/2019 16:45

US-China trade truce leaves markets with big questions
Julia Horowitz byline

By Julia Horowitz, CNN Business

Updated 9:40 AM ET, Sun June 30, 2019
Trump: We had a very good meeting with China

A ShackBurger, cheese fries, and milkshake are arranged for a photograph at a Shake Shack Inc. restaurant in Lexington, Kentucky, U.S., on Wednesday, March 6, 2019. Shake Shack is still failing to bring in more diners as it expands outside its home market of New York in the fiercely competitive restaurant space -- the chain plans to open 36 to 40 company-owned U.S. locations in fiscal 2019. Photographer: Luke Sharrett/Bloomberg via Getty Images
Shake Shack CEO: We have to plan beyond trade war headlines
Indian flags on display in Delhi ahead of independence day celebrations
India escalates trade fight with US, adds new tariffs
This is the worst case scenario for the US-China trade war
U.S. President Donald Trump talks to the media before he departs the White House on June 02, 2019 in Washington, DC. (Tasos Katopodis/Getty Images)
Trump's trade war fuels global recession fear
CEO: Tariffs turn up pressure on my business
A staff member of Huawei uses her mobile phone at the Huawei Digital Transformation Showcase in Shenzhen, China's Guangdong province on March 6, 2019. - Chinese telecom giant Huawei insisted on March 6 its products feature no security "backdoors" for the government, as the normally secretive company gave foreign media a peek inside its state-of-the-art facilities. (Photo by WANG ZHAO / AFP) (Photo credit should read WANG ZHAO/AFP/Getty Images)
What blacklisting Huawei means for the US-China trade war
Huawei and 5G: What's at stake
Jamie Dimon: Trump's strategy on tariffs might have worked
cnnmoney china debt
How Trump's trade war with China could backfire
Trump: We had a very good meeting with China
US moves to loosen China's grip on rare earth minerals
This is what a trade war looks like
Trump rips Federal Reserve chief: I have right to fire him
Blackberrys, iPhones and Android phones sit on white background.
WSJ: US considers ban on 5G equipment made in China
Malaysia PM: China won't kowtow to US trade demands
Why tariffs on Mexico are bad for the US
Blackstone CEO: Trade war won't cause a US recession
A ShackBurger, cheese fries, and milkshake are arranged for a photograph at a Shake Shack Inc. restaurant in Lexington, Kentucky, U.S., on Wednesday, March 6, 2019. Shake Shack is still failing to bring in more diners as it expands outside its home market of New York in the fiercely competitive restaurant space -- the chain plans to open 36 to 40 company-owned U.S. locations in fiscal 2019. Photographer: Luke Sharrett/Bloomberg via Getty Images
Shake Shack CEO: We have to plan beyond trade war headlines
Indian flags on display in Delhi ahead of independence day celebrations
India escalates trade fight with US, adds new tariffs
This is the worst case scenario for the US-China trade war
U.S. President Donald Trump talks to the media before he departs the White House on June 02, 2019 in Washington, DC. (Tasos Katopodis/Getty Images)
Trump's trade war fuels global recession fear
CEO: Tariffs turn up pressure on my business
A staff member of Huawei uses her mobile phone at the Huawei Digital Transformation Showcase in Shenzhen, China's Guangdong province on March 6, 2019. - Chinese telecom giant Huawei insisted on March 6 its products feature no security "backdoors" for the government, as the normally secretive company gave foreign media a peek inside its state-of-the-art facilities. (Photo by WANG ZHAO / AFP) (Photo credit should read WANG ZHAO/AFP/Getty Images)
What blacklisting Huawei means for the US-China trade war
Huawei and 5G: What's at stake
Jamie Dimon: Trump's strategy on tariffs might have worked
cnnmoney china debt
How Trump's trade war with China could backfire
Trump: We had a very good meeting with China
US moves to loosen China's grip on rare earth minerals
This is what a trade war looks like
Trump rips Federal Reserve chief: I have right to fire him
Blackberrys, iPhones and Android phones sit on white background.
WSJ: US considers ban on 5G equipment made in China
Malaysia PM: China won't kowtow to US trade demands
Why tariffs on Mexico are bad for the US
Blackstone CEO: Trade war won't cause a US recession
A ShackBurger, cheese fries, and milkshake are arranged for a photograph at a Shake Shack Inc. restaurant in Lexington, Kentucky, U.S., on Wednesday, March 6, 2019. Shake Shack is still failing to bring in more diners as it expands outside its home market of New York in the fiercely competitive restaurant space -- the chain plans to open 36 to 40 company-owned U.S. locations in fiscal 2019. Photographer: Luke Sharrett/Bloomberg via Getty Images
Shake Shack CEO: We have to plan beyond trade war headlines

London (CNN Business)1. US-China truce: Markets will like the news that the United States and China reached a temporary trade truce this weekend in Japan, where US President Donald Trump and Chinese President Xi Jinping agreed to table new tariffs and continue negotiations.
But uncertainty about whether a meaningful agreement can be finalized could loom over markets in the second half of the year.
Existing tariffs remain in place and will continue to hit businesses. And the administration's position on Chinese tech giant Huawei remains murky, which could make the tech sector jittery.
"The temporary agreement does little to resolve the fundamental conflicts over trade issues that broke down talks in May and does not amount to a sustainable solution for Huawei," wrote analysts at Eurasia Group, a political risk consultancy.

Global stock markets rallied spectacularly in the first six months of 2019. The S&P 500 jumped more than 17%, recently notching an all-time high. The Dow increased a similarly impressive 14%.
In China, those gains were even greater. The Shanghai Composite rose more than 20%. (Hong Kong's Hang Seng saw a more moderate 10% increase.)
Yet there have been signs of fragility. When Trump suddenly said he would increase tariffs on China in May, stocks plummeted. And most analysts attribute their current levels in large part to the assumption that the US Federal Reserve will cut interest rates in July. Chairman Jerome Powell has indicated that a rate cut could be in the cards, but the timing and magnitude of any move remains an open question.
The decision by the United States and China to keep talking could slightly improve sentiment among business leaders as they look toward the future.
The main problem is that US tariffs on $250 billion worth of Chinese goods remain in place, as do Chinese retaliatory tariffs on US exports. That will continue to hit corporate profits. And the longer these tariffs remain in force, the more companies think about spending to shift their supply chains — an expensive endeavor that could prohibit spending in other areas.
The US position on Huawei also remains ambiguous.
Trump reversed course on Huawei. What happens now?
Trump reversed course on Huawei. What happens now?
Trump said this weekend that he would again allow US companies to ship components to Huawei that don't threaten US national security, an apparent reversal after his administration blacklisted the smartphone and telecom equipment maker in May. He cited pressure from US tech companies as contributing to his decision.
It's not clear, however, exactly how the United States will alter its export ban to meet this standard, and whether it will give Huawei access to crucial US parts for all lines of its business. The Trump administration also faces significant domestic political pressure to continue its broadside against Huawei, which US politicians agree poses a national security threat.
"Trump's intermingling of Huawei and trade talks makes both more complex," the Eurasia Group analysts said.
2. OPEC meeting: OPEC meets in Vienna on Monday and Tuesday. The main agenda item: whether member countries will extend production cuts that expire at the end of June.
Russia and Saudi Arabia have reportedly already agreed to extend cuts by six to nine months.
S&P Global Platts predicts that the group will agree to rollover current cuts through the end of the year, but won't move to trim production any further. Markets agree.
Such a move could prop up prices at a volatile moment. Oil has been on a wild ride with conflicting signals making it difficult to guess if prices are broadly heading higher or lower.
Brent crude, the global benchmark, finished Friday at $66.55, up 2% for the week. US prices rose 1.8% to $58.47.
Geopolitical tensions in Iran and Venezuela have raised concerns about constricted supply, pushing prices higher. Yet there's also been recent evidence of excess supply as global economic growth slows. Higher stockpiles drove oil into a bear market earlier in the month.
3. Jobs report: The US Labor Department will release its monthly jobs report on Friday.
Economists polled by Refinitiv expect the unemployment rate remained at a steady 3.6%, with the addition of 165,000 jobs. That would represent a bounce back from the 75,000 jobs added in May, but a slight slowdown from the 175,000 jobs created on average over the past six months.
Any sign of growing weakness could send stocks lower and bolster the case for a big interest rate cut from the Federal Reserve in July.
Other indicators, such as consumer sentiment and durable goods orders, have been dragged down in recent months, in part because of ongoing trade tensions.
4. India's economy: The Indian government led by Prime Minister Narendra Modi will publish a key economic report and present its annual budget this week as it tries to get its economy back on track.
GDP growth slumped to 5.8% in the quarter ended March — the slowest rate in two years — meaning India lost the title of world's fastest growing major economy to China.
And things may be even worse than official figures indicate. A former government adviser warned earlier this month that growth in recent years may have been "a significant overestimation" because of a change in the way it was calculated.

5. Coming next week:
Monday — OPEC meeting; US and German manufacturing data
Tuesday — German retail sales
Wednesday — US markets half day; US balance of trade for May
Thursday — US markets closed
Friday — US jobs report

Lydia DePillis and Rishi Iyengar contributed reporting.

[turvart] 30/6/2019 16:31

Portside1,
A question I have for you, why have you invested so much money into CNA when you constantly state Ian Conn and the directors are not up to their position?

It doesn’t really make sense to me that you try to keep averaging down but at the same time state how rubbish the board are?

I hate marmite so I never buy it.

[portside1] 30/6/2019 13:32

Ever town or city you go in Either m/s edf. S/p. Eon. Shell. Are touting for customers Bg never seen them anywhere in the last 10 years no wonder they lose customers the directors of. Centrica are dead

[diku] 30/6/2019 09:13

They want to talk of future expectations when they cannot manage current expectations...and as for a strategic update...who came up with this strategy update?...is it from outside sources (aka management consultants, advisors, researches, investment brokers etc etc whereby they pay money to them and insiders just endorse it or within?)...will all insiders pay back every penny if this so called strategic update goes pear shaped and loses shareholder equity?...sooooooooooooo much value already lost with this so called expectations and strategy...worse comes to worse just blame it on BREXIT!...job done..

[losses] 30/6/2019 00:14

There you have it 55p is comingHttps://uk.finance.yahoo.com/news/centrica-share-price-heading-55p-074529668.html

[diku] 29/6/2019 22:06

From the Motley Fool post above...The fool is on the button...
with all this rocket science update of the update!...who are these guys in the remuneration committee approve pay rises and bonuses...about time contracts should include claw backs and get rid of freebie shares to insiders...



In May, Centrica boss Iain Conn promised July’s half-year figures will also include details of “updated future expectations,” a “strategic update” and “an update to the Group’s financial framework.” All of these could be code words for bad news, although we can’t be certain of this.
Here’s what I do know

What we can be certain of is that the firm’s performance has been consistently disappointing for years. As my colleague Rupert Hargreaves pointed out recently, the group has destroyed about £2bn of shareholder equity over the last five years.

[sza2002] 29/6/2019 22:05

@Turvart, do you expect CNA to gap up on Monday so much that you would have missed the opportunity?

[adrian j boris] 29/6/2019 13:59

TUR

You can always get on another boat, as with buses they normally come along in threes

[turvart] 29/6/2019 13:55

Adrian,
Yes it should your right, I had a lucky escape with this stock because I’ve been following it since last year and nearly invested in to it in a big way when it got to 118p, luckily for me I understand fundamentals and I take fundamentals very seriously, there is a saying in trading “ Fundamentals always win in the end “ and I really believe that saying so I held off and in insight I did the right thing, but I’m actually thinking this could very soon be a buy and I’m prepared to throw fundamentals and caution to the wind, CNA must be a buy at some point and I think we are fast approaching that scenario IF I haven’t missed the boat of course. Because there is a big possibility I have actually missed the boat.

[adrian j boris] 29/6/2019 13:34

Turvart
29 Jun '19 - 13:25 - 19923 of 19923

would tend to go along with that

The end of july should give us a little more clarification

[turvart] 29/6/2019 13:25

Adrian J Boris,

With regard that post from Fool.co.uk, taking the comment about a profit warning and divi cut, I think IMO that a profit warning is already priced in and if they did issue a profit warning that the share price would drop but I don’t think it would be to the extent people think it would, with regard the Divi cut I’m convinced the share price would actually rally if they can keep the divi around 5-6% yield.

I’ve been looking at the fundamentals again and even though they are in a mess CNA are actually reducing their net debt from 2017 and 2018 levels so that is a plus sign to the fundamentals, I personally feel that support is either at 86p or somewhere slightly lower maybe, time will tell, but I don’t think it will go any lower than 80p.

If CNA hit 80p or below I will actually buy into this and I will ignore the fundamentals and throw caution to the wind.

[adrian j boris] 29/6/2019 11:21

hifc231
29 Jun '19 - 10:50 - 19920 of 19920
0 0 0
Wonder if this would affect the Governments Price cap lol ..... happen though as we live in a free market.