National Grid Share Discussion Threads

[bountyhunter] 10/6/2015 09:11

Interesting LG, I thought that must be how things work.
So with interest rates I guess any short term effect on the share price is a case of whether any change is suggested by the powers that be to be sooner or later or smaller or greater than expectations, with all eyes on the US as a potential future indicator and forecast and actual economic growth figures driving the powers that be.

[lord gnome] 10/6/2015 08:29

That shouldn't be an issue red. The regulator should allow for that in 'cost of capital' calculations.

[redartbmud] 10/6/2015 07:58

Perhaps they are uncomfortable with the level of debt, now that interest rates are about to move northwards.

[gbb483] 10/6/2015 06:54

They want to depress the share price so they can buy in cheaply.

[salpara111] 09/6/2015 17:06

I've been tracking this one for a while but struggle to understand the share price underperformance.
Most of the big brokers are pretty negative towards them and I fail to understand why given that they are a stable business that is not dependent on power prices and they pay a very handsome divi.
Any suggestions as to why brokers are so negative?

[bountyhunter] 08/6/2015 13:53

Thanks, I don't think that CNA has performed that well so more likely Rangold I guess.

[hiriam007] 08/6/2015 13:48

As far as I recall Randgold Resources. I think Centrica did 9 out of 10.

Of course Sod's law and all that :)

[bountyhunter] 08/6/2015 13:38

hiriam007 - out of interest what was the other?

[lennonsalive] 08/6/2015 08:10

National Grid Metering have no interest in Smart Metering. Hence they want to get rid of the metering side.

They've already closed closed Gloucester and Coventry offices, moved everything to Solihull. It's been in the making for years and most people who worked at National Grid knew this would be on the cards. Grid just want the distribution network and that's no secret

[hiriam007] 07/6/2015 13:44

While the summer tends to be a poorer time for investing, NG. is one of only 2 FTSE350 companies to have risen each summer for the past ten years. (Stock Market Almanac)

[pierre oreilly] 07/6/2015 11:50

Blue, almost every uni engineering dept in the world will have someone researching battery or storage technology, and has done probably since electricity was discovered.

But it's amazing what hype and subsidies can achieve.

Researchers at Cerl (the now defunct research centre of the cegb, the staff of which were transfered to NGC on deregulation) came up with pumped storage as a way of indirectly storing electrical energy, and even then only justified on the supply of instantly avalable reserve power for frequency support (and not as most think, storing cheap night energy and selling it at peak times, which is a secondary function). Dinorwig - without subsidy or green interference - pays for itself and supplies a financial and environmental return by allowing other stations on the grid to work more efficiently by not have to do so much reserve duty (i.e. frequency support). The odd thing is, green demanded technologies like windmills undo much of those benefits by forcing the exact opposite - other conventional stations have to supply more reserve for frequency support due the the intermittent generation from them.

Others tried, and failed, with continuous fuel cells as a chemical method of grid scale electricity storage.

I'm afraid its not simple or cheap storing electrcity (on a grid scale, and battery storage isn't scaleable to that or anywhere near. Doesn't matter how much its hyped and subsidised or how many other advfn posters tell you Musk is some sort of battery god, you won't see batteries having much influence on the grid in the forseeable future.

[blueledge2] 07/6/2015 10:39

I have a slight concern about new tech such as Tesla`s powerwall. Have said that I may be dead by the time that makes a difference.

[jr_] 07/6/2015 10:18

Now the bond sell off, next a possible grexit, next a possible Brexit. And am sure the In betweens and the afters. It's all nonsense for the long term investor if invested in a solid company.

Of course no one can predict the future but can make assumptions on facts.

And the facts - NG are an extremely stable and profitable company as we speak. Of course it can change but not looking likely at the moment.

Unless a major disaster cripples the infrastructure of this country and the U.S. (Let's not forget NGG.), or OFCOM starts up again, or the 10 year deal falls apart, or the interest rested fly thru the roof instantly, etc… then IMHO get in NG below £9. Even could go lower if the market plays around due to Grexit etc. but not much lower.

Obviously nothing is that bullet proof as we have seen with Tesco etc… although, NG is a different beast entirely.

I always set a tracking stop loss at 20% below any share I buy. Hasn't failed me yet.

All IMHO.

[daveofdevon] 07/6/2015 10:15

Ignore him or filter him Careful, not a very pleasant person !

[careful] 07/6/2015 09:51

'I display ignorance on a daily basis....'
very good, I always knew that, I have been found out at last.

[lord gnome] 07/6/2015 09:34

Every now and then NG. has a funk and does tend to drop rather alarmingly - check out the chart above. The problem for me this time around is that it has knocked NG. out of the long term rising channel that it has occupied for the last five years.

[mornington crescent] 06/6/2015 16:13

Nothing wrong with NG

its just caught in the current storm in the bond market and yield issues


patience

[bbonsall] 06/6/2015 14:25

Careful
Don't confuse energy sellers with National Grid. NG maintains and installs the wires for electricity and the pipes for gas. It does not sell the energy and was not the target of the likes of Milliband. NG has had an agreement with the regulators in place for a year and lasting several more. That is the problem with the stock market, it proudly displays its neurosis and ignorance on a daily basis. Just as you have done.

[careful] 05/6/2015 22:10

that question would even be true at £5.0 per share.
the question is,
will the regulator allow a decent return on assets in a time of low interest rates?
the risk here lies with the regulators settlement.
remember the election.
Milliband and his chums were about to tip the settlement to the advantage of the consumer versus the shareholder.
i.e.lower bills= lower profits and dividends.

do not get too confident about what the Tories will do.

[cley123] 05/6/2015 21:56

When you consider NG, you have to ask a simple question,in an ever changing world is electricity about to go out of fashion?

[careful] 05/6/2015 21:10

Why the fuss over dividends.
Warren Buffett's Berkshire never pays one.
If you want some cash then sell a few shares.
the divi comes off the share price..it makes no difference.

[utyinv] 05/6/2015 20:37

Pierre,

Ever the optimist.....

Lets face it a divi of 28.16p against a drop over five days of 80p isn't very good. Granted it doesn't matter if you are a long term holder for divi reasons but it doesn't hold good in persuading the Market that these should be £10 per share if after every final divi it falls close to a £1.

Maybe NG should look at the divi strategy again, ie rather than 66% being paid as a final divi and 33% as an interim it may prove more stable for four equal divi's to be paid equally and spread out throughout the year?

[dennisten] 05/6/2015 18:49

I'm in too - I'd say it was one well worth holding on to.

[jr_] 05/6/2015 18:48

Bought this today after watching for a long time. Too long.

Will hold for 2 years.

Or may even hold forever?

IMO can't see it going to 820. But this is the stock market after all. According to most sources NG is bullet proof. Best go and put that vest on then.…

[davr0s] 05/6/2015 18:27

Nah! I'm in - it'll hover in this area at the very least and with 5% divi happily hold medium term