Drax Share Discussion Threads

[scotches] 07/1/2021 12:51

Is the FT page on forecasts up to date. Broker forecasts on price usually track an improving share price even if generally incapable of predicting future direction.



"The 10 analysts offering 12 month price targets for Drax Group Plc have a median target of 355.00, with a high estimate of 400.00 and a low estimate of 248.00. The median estimate represents a -10.22% decrease from the last price of 395.40."

[cassini] 07/1/2021 01:37

I'm in a quandary as to whether to take profits. Consider this scenario - someone buys 500 Drax shares at 200p, then it rises to 400p.

His original outlay of £1000 bought shares that have now doubled in value to £2000 and the dividend is 8.15% - relative to his original buy price. Not bad at all. He gets 16.3p per share as a dividend (£81.50 dividend annually in total).

However the dividend is actually 4.08% to a buyer at the current share price of 400p.

He could sell up DRX and with the proceeds buy £2000 worth (1751 shares) of, say, DGOC instead. With a dividend of 10.85p/share (maintained through 2020 incidentally), his DGOC investment will return a dividend of £190 per year.

He is now getting over double the DRX dividend payment (if held in a SIPP, as DGOC is subject to withholding tax). Considering the original outlay into Drax was £1000, that's a bit like getting a 19% dividend on the original £1000 investment inside of a year.

All this supposes of course DRX does not climb in value much further and DGOC does not drop or stop paying the dividend. You can replace DGOC with a similar high yield share.

Of course Drax could climb higher - it's been much higher in the past, but it's met resistance at ~400p since 2015. Decisions, decisions...

[cjohn] 30/12/2020 17:58

Yes, I agree Castleford.

No glaring bargains in the UK, anymore, though if HSP falls back, I'll buy some more.

MFX I ducked.

I've been re-cycling profits from the UK into Japan, where there are still some very good bargains in small and medium caps with sound businesses and enormous downside protection, which have been left behind by the market rally.


All the best for 2021.

[castleford tiger] 30/12/2020 17:29

john

Like you I bought lots in March to add to my core holding.

A profit is always a good thing but I cannot find anywhere better to place the potential block of cash.

I have finished buying HSP but have some gaps with MFX/RBN/LPA as well as TND whenever it gets close to 500.

happy new year

[cjohn] 30/12/2020 15:46

Lots of liquidity and buying going on in the last couple of days, and I've taken advantage to sell out my entire holding.

I bought in in the COVID panic in Feb/March when they were exceptionally cheap like many other shares. At that point just about any buy did well or very well.

I agree with Castleford Tiger and others that the yield is attractive, but on other value metrics they don't look particularly cheap anymore to me.


Good luck to holders. And thanks to all posters for an informative board.

[castleford tiger] 30/12/2020 09:19

well my 400p suggested in November is getting very close.

strong demand for DRAX

Tiger

[paulo435] 15/12/2020 20:02

Article out tonight..“Drax Group has agreed a near £200-million deal to sell its gas-fired power station portfolio.

VPI Holding Ltd, the company behind one of Europe’s cleanest operations in the Humber refining complex, has swooped in a £193.3 million deal.
A total of 121 employees will transfer on completion.
It forms the latest chapter in Drax’s green transformation, with coal - once everything to it - to be removed from the system in March after a huge switch to biomass.”

[boozey] 01/12/2020 17:47

Gecko you are entitled to be whatever you wish to be! We are here to debate outcomes not to put the world to right! Drax has been a consistent performer since the start of the pandemic pays a great dividend and had directors buy in post excellent interims around 370p. A firm hold I would say.

[boozey] 01/12/2020 17:34

This ''dog'' has got a lot of life in it without a takeover bid - which by the way 6 months ago was mooted at 340p - ie. where we are now give or take ;)

[geckotheglorious] 01/12/2020 17:31

When is the dog going to get that elusive takeover bid?

[michael123harvey] 01/12/2020 17:07

JdraxHas I ii

[boozey] 30/11/2020 19:04

Tiger, the market fell out of bed. Not sure I read too much into it. Drax has been on a great run recently. Unless you feel otherwise? End of month Book keeping?

[castleford tiger] 30/11/2020 18:27

What happened this afternoon

[rburtn] 17/11/2020 08:40

Nothing to my way of thinking, absolutely nothing, is so stupid as carbon capture. Mankind competing with the natural carbon cycle is nothing short of moronic. Firstly, and one can prove it in 5 minutes flat, CO2 is irrelevant to Climate Change. Secondly, CO2 is the most soluble of gases in water - up to 3% - and 1m of water falls as rain on average world wide washing it out. The entire world of plant growth absorbs incalculable amounts of the stuff. It is just one more measure of public brainwashing to conceal the fact that the Great Greenhouse Gas Fallacy is to protect the prop for the world ruling Oligarchy- cheapish fossil fuel to run their mega yachts, private airlines and global estates. Make the public cough up to solve the problem of a valuable depleting resource whilst enjoying rock bottom aviation fuel.

[castleford tiger] 14/11/2020 16:48

Mine cost me under 200p so I am the same a fabulous yield.
Whilst wind and solar will become very much the focus and the major provider...........there will always be a need for DRAX until we get storage sorted.
Eventually like in the us most houses will have back up battery storage.

tiger

[boozey] 14/11/2020 16:11

I'm here for the duration! Tiger still got your Tandem shares?

[paulo435] 14/11/2020 15:09

Agree tiger - I’m actually on a yield of 6.7% so even better, but I tend to favour quick hit capital growth on some stocks. Will see, may keep this one for a bit yet!

[castleford tiger] 14/11/2020 14:31

where can you place the funds with 5% yield?

My only other option with growth as well is HSP

Tiger

[paulo435] 14/11/2020 10:54

We are now sitting at around the previously rumoured takeover price, to sell or to hold ? Good divi, think I’ll hang for a while yet

[boozey] 14/11/2020 09:53

Yes one of my best performers post crash and good dividend too!

[castleford tiger] 13/11/2020 12:46

continuing to climb away I see 400 plus

[paulo435] 23/10/2020 14:57

Highest price since January, good climbs recently ;)