National Grid Share Discussion Threads

[pierre oreilly] 19/8/2013 09:18

Darias, I hope you give your thoughts to every other thread on every other quoted company, the vast majority of which have also had rights issues and also paid dividends.

It really is a nonsense view I'm afraid, as I explained a few weeks ago. I'm not an accountant, but afaiia, companies can't even pay out divis unless they have past profits from which to pay them anyhow. So, as well as being nonsense, your views would be against company law too if there weren't profits from which to pay them (and if my understanding is incorrect I'd appreciate an accountant to clarify the issue), and in the case of NGC, the regulator certainly wouldn't allow it even if it were lawful.

[darias] 19/8/2013 08:10

It is certainly sustainable. After all that they have to do is to do a rights issue to maintain it.

Clever or what.

[arja] 18/8/2013 17:50

adelwire- div is about 6% which is good if it is sustainable .

[arja] 17/8/2013 10:58

newbank - thanks for that and probably the reson for the sell off. I will cut my loss on monday I think as only sold half recently ! Bet it bounces after I sell ! Thanks again for info .

[newbank] 16/8/2013 19:30

arja,

Regulators have already done their work - for eight years with a review after four years. National Grid knows what numbers they have to work with. However, do not underestimate the amount of money spent on giving severance payments as a result of the extensive reorganisations taking place as part of an efficiency drive. The reductions are; Managers by 20% and a cut in Engineers and staff by 10%. The costs associated with these redundancies are quite extraordinary - short term. The efficiency savings though will show within two years.

In the short term these payments will make a big hole in the Company's cash reserves but will soon show savings in operating costs.

[adelwire2] 16/8/2013 18:07

I just cant see what's pulled price down in past week but divi not that great me thinks

[arja] 16/8/2013 12:10

that is what I thought but it shows no sign of turning and , as an earlier post mentioned , the dividend might not be sustainable when the regulators do their work !

[moving up] 16/8/2013 11:20

solid divi get in now. this will not be this cheep for long..

[rcturner2] 16/8/2013 09:14

I think it may test 700p

[defcon3] 16/8/2013 09:04

Looking for an entry guys. Is this a decent level or do you expect a further retrace?

[arja] 14/8/2013 15:19

really on the skids and not even a bounce at any stage . Kept half my holding to my regret but I guess it will turn eventually !

[skinny] 08/8/2013 11:54

RBC Capital Markets Outperform 775.00 771.50 900.00 900.00 Reiterates

[skinny] 07/8/2013 08:32

Citigroup Neutral 777.75 820.00 820.00 Retains

HSBC Overweight 777.75 875.00 885.00 Reiterates

JP Morgan Cazenove Neutral 777.75 735.00 - Reiterates

Bank of America Merrill Lynch Buy 777.75 800.00 800.00 Reiterates

Morgan Stanley Overweight 777.75 880.00 880.00 Reiterates

[phillis] 31/7/2013 11:51

thank goodness for pathetic AGMs

Lets have more of them if this is the share price reaction

[redartbmud] 29/7/2013 17:19

AGM was pathetic at best.
Chairman wants to cut the cost, which was £187k for externals. I suggest that they cut the number of Capita employees, most of whom did nothing - they stayed in a hotel last night I believe. For a 2.00pm meeting!!

They should cut the non-execs as well. Bees round a honey pot.

The man (chair) had an arrogance that made my blood boil.

red

[m100] 29/7/2013 14:57

1445 Question on 'occupational safety' with regards to the 'fact' that '10% of men are rapists'

[redartbmud] 29/7/2013 10:57

Uty

I grilled the FD about the debt at last year's AGM. He said that the market was happy to lend the cash at very competitive rates, and did not see this altering.
They have a £20 billions investment programme, which commenced in 2012/13, of which they have spent some £3+bn in the year. There appears to be an incentive to borrow in the financial model, as the greater the borrowing, the more they can recover through the regulated business.
My worry would be the limiting of profit through the regulatory framework for political reasons. I am not sure how they would square up to inflation, but at present it doesn't appear to be on the horizon.
there would appear to be only one way for interest rates to go, and that is up.

I shudder to contemplate "flat"Ed Balls and Milliband in government.

Dividend cover is thin at 1.4x adjusted earnings.

red

[skinny] 29/7/2013 10:22

Utd, from their website -

[utyinv] 29/7/2013 10:15

Red,

Yes I know what they have said and I believe that they can continue to deliver.

However, there are too many rumours going around that Utilities are funding Dividends through increased debt. These rumours may be partly down to MM's trying to give reason to 'Short' and or not knowing the dynamics of how secure Utilities income is, thus debt can be seen as a different risk than it is to other Companies. Some knowledgeable people still fail to realise that NG's spend can be recouped from customers subject to constraints detailed in RIIO.

At the AGM, It only takes for one Analyst to ask the question in order for Steve Holliday to rebuke the question as being without foundation.

By the way, I am unable to attend the AGM does anyone know if there is a Podcast and if so what time?

[spacecake] 29/7/2013 09:54

Solid update, as for the divi.. is that not what they said originally ? in line with RPI, for as long as you can see into the future (Months, years maybe, not decades ??

[redartbmud] 29/7/2013 08:43

Newbank

FINANCIAL UPDATE



There have been no material changes to the financial position of the Company during the period. National Grid has a strong balance sheet, underpinned by regulatory revenues, which is key to its ability to secure the required long-term funding for both the UK and the US businesses. Interest cover, gearing and other financial metrics remain within comfortable ranges to sustain the Group'sstrong credit ratings in the medium term and support the policy of growing the dividend at least in line with RPI inflation for the foreseeable future.

Does that answer the question?

red

[skinny] 29/7/2013 07:20

Morgan Stanley Overweight 760.50 760.50 880.00 880.00 Reiterates