National Grid Share Discussion Threads

[utyinv] 02/3/2018 08:23

NY Boy,

IMM, was approx 190p in Jan now it’s 120p ish. RU saying when phase III comes out positive the price will shoot up beyond £2?

BTW, R U aware you are on the Wrong thread? If it’s a dig on NG share price who knows where NG will be in a year’s time?

[ny boy] 02/3/2018 07:45

What’s all this got to do with planning early retirement in the Caribbean each winter whilst blight freezes..as a result of top line (IMM) phase 3 Lupuzor results due end of the month 😎🕺🍾🎰7958;💷ԁ83;💷

[utyinv] 01/3/2018 12:17

m100,

Good post,

just goes to show that Ofgem are ruining the industry in their quest to be loved by the politicians.

TM has been an idiot right from the start on the whole energy issue.

Trying to appease Corbyn voters she says she supports a price cap (which many CEO's around the world argue could remove competition).

TM appoints a Business and Energy select committee where the 'Chair' is Labour and the members on the panel include five Labour, one SNP and 5 Conservatives. So no way was the review biased towards recommending a price cap (tongue in cheek), it was inevitable that there wasn't going to be a fair review. TM is so involved with making a mess out of Brexit she has abdicated from responsibilities that affect all our lives now.

Energy, Food and Housing costs have always been the biggest expenditure on take home income. Rather than people focusing on expensive holidays they should pay reasonable prices for their energy, especially as we strive to implement renewable energy and to close fossil fuelled power stations. We live in a very cold country, we are expected to pay more for our energy usage. Less expensive holidays and more focus on paying for essentials.

Ofgem are doing themselves out of existence. Its the Energy Companies who are regulated by Ofgem that pays for their running costs. If they squeeze the Energy Companies so much they won't be able to pay. If it becomes untenable to run as a Private business and returned to being Nationalised, there wouldn't be a need for Ofgem anymore. So Ofgems stance reminds me of Turkeys voting for Christmas.

As for TM.....IMO she is the worst Conservative PM ever, she doesn't command respect, is too preoccupied in appeasing Marxists (who would NEVER vote for her in an election) and is disowning Pensioners, Professionals and Middle Class England. IMO she is very poor and instead of loving herself (I wish she would stop wearing those disgusting shoes), pontificating in front of the cameras or going on jollies she should remind herself of why she was voted in to office and start to get something done.

Most people who do a good job, give deadlines, apply standards and put off having lunch or holidays until the job at hand is done. For a Centrist voter, TM, IMO is a waste of space. She needs to up her game and to remember who voted for her to remain in office.

[m100] 01/3/2018 11:49

Parallels with NG

WPD are the DNO for Wales, the Midlands and the South West. US owned & listed



RIIO threat wiped one-fifth off WPD’s share price, says CEO

Ofgem’s proposal to reopen the RIIO price settlement for electricity networks wiped 20 per cent off Western Power Distribution’s (WPD’s) share price

In a warning for Ofgem, which is currently setting the framework for the next round of RIIO amidst widespread criticism that the current settlement is too generous, Symons said: “Discussions or debates about excess profits, which in themselves are a fallacy, and adjustments that could be made during an MPR melt into insignificance when you compare that to the effects of uncertainty – which are higher equity and financing costs in the future, resulting in higher costs for customers.”

[action] 01/3/2018 10:10

wskill,

Agreed. UK PLc is being sold off too cheaply by our so called open minded political regim. They are destroying London as Financial centre as they do not like Banks, utilities etc making profit to invest for the future investments.

There will be nothing left in UK if this is continued without any checks IMHO.

[wskill] 01/3/2018 09:31

Another UK company taken over today a leader in its field Laird it's share price was a fraction of what it should have been. The hedgies will be pleased with their work if this had been a USA company it would have been sold for a multiple of its take out price.

[justiceforthemany] 28/2/2018 22:41

M&A/foreign ownership imperative for utilities in this climate and would reduce any political risks which are overblown IMO.

[justsaying14] 28/2/2018 21:55

Why would the Board want to defend the Share Price when they’re in the middle of a buyback; plus they know the shares will ramp up in May whatever the political risk, gilts, bonds.. as investors will just chase the dividend and only hold the shares for a limited window ...nice profit; again I’m not in this for the long term I will be selling my NG shares then, too much of a rollercoaster for me now...

[davr0s] 28/2/2018 21:16

I just buy shares in up trends and sell when the trend breaks - no exceptions - keeps me out of all sorts of trouble like here. No more analysis required than that. So this one got chopped a long time ago. Still watching and waiting but no reason to reenter at the moment

[utyinv] 28/2/2018 21:00

Justiceforthemany,

At least water companies are fighting back. CEO of SVT has been talking to the media reiterating that only the private sector will be able to provide the investment needed for updating obsolete infrastructure.

Despite the price falling 40% in eight months there is little response from our Board of Directors.
We used to see Steve Holliday using the media all the time giving news updates to plug the Company but the only time we see the new team is twice a year, once at interim and then final (excluding AGM).

They are either relaxed about the share price being rock bottom or just not doing their job.

Must admit I had high hopes for this team. It’s easy to blame the markets but jury is out on whether enough is being done to protect shareholder capital and to adopt and implement a strategy to increase ROE.

IMO :)

[action] 28/2/2018 19:01

Did anyone mention to uk politician that they r depressing UK PLC prices and foreigners are taking them over with rock bottom pricesAs they trade with high multiples ?

[mj19] 28/2/2018 17:19

This share is being pushed down past 7.20 and then to 620. Just because of some iii right up and chart..

[db125] 28/2/2018 16:45

Struggling despite 40% being bought back. Not encouraging!

[willoicc] 28/2/2018 16:38

6.7 million share sale UT

[tim 3] 28/2/2018 16:32

Back to the lows,relentless.

[pogue] 28/2/2018 14:21

I did say bank and company bonds have a look at RUSP that is a company Pref based on income from Russian warehouses, not a safe bet on many levels yet it has fallen marginally. I have sold a large part of my holding there as I believe it will fall in the future due to interest rate rises and inflation but NG has already fallen and fast, why would investors be worried with one ‘bond’ and not another to be honest usually company divis, like NG, are the place to be in a rising inflation and interest rate environment as divis usually rise with inflation whereas fixed interest instruments go down in price to raise yield. I would also say if hedge funds are responsible for some of this with their negative outlook the lack of shorting does not agree with this. I am not seeing the worry here over the divi,
Regards Hinkley as you say they don’t need to do it if the price is not right so not seeing the risk to the divi there either.
There is too big a fall in all utilities share prices for them not to be linked and Hinkley and Hedge Funds are not a common denominator IMHO.
By the way regards OFGEM and government being ignorant of engineering I totally agree. Government is only worried about being re elected so don’t care about cost over runs and problems in the next parliament and OFGEM have been told to get tough with utilities sector to make the government look like they care about energy costs just like this stupid price cap that everyone agrees is completely the wrong way to go.

[utyinv] 28/2/2018 13:47

Pogue,
Re bonds, investors who want secure returns are turning to gilts and secure Bank bonds. NG is incorrectly been characterised as a risky income despite its pledge to
Maintain divis. Hedge Funds are presenting the argument that OFGEM will put a cap on NG’s earnings. An early insight into this is the initial proposal to cutback on NG’s return on undertaking the Hinkley project. OFGEM are wanting NG to build it for next to nothing, a charity, a gift for the common cause. That is why NG have said such a proposal was unacceptable.

Many are thinking that Grids restricted earnings will
prevent them from honouring their pledge to provide secure income, as with a bond.
The final decision re Hinkley is due in ‘the spring’? Whatever that means? Meteorologically speaking spring starts tomorrow 1st March ????

If OFGEM don’t compromise NG should walk away from the deal and let OFGEM give the project to another Contractor. However, I would be very surprised if the build can be of the quality and within costs as OFGEM are expecting. If given to another Contractor I can see costs escalating, going back to OFGEM with a begging bowl. If this was to materialise and costs did escalate NG should publish this news on every medium possible.

In addition, any build has to comply with established standards before it can be connected to NG’s existing system. Any inferiority would have to be put right irrespective of costs. Something that OFGEM ( who are ignorant from an Engineering perspective) and the Contractor May live to regret.
This could be a prime example why too much Gov Control in specialised areas creates inefficiency and escalating costs.

[db125] 28/2/2018 13:26

Looks like Barclay's is putting a floor under NG at 750 with the buy-backs, 1mn at 747 yesterday out of 2.3mn buys. Still a potential 15mn buys to go before 3rd April.

[pogue] 28/2/2018 13:18

UtyINV
the Royal Mail is the odd one out in the privitisation argument I agree. You claim the reason for the fall of the bond like utility NG is due to fears of rising interest rates and inflation yet bank and company bonds have not done so, this I suggest pokes a hole in your reasoning as well.
Something doesn't add up.

[utyinv] 28/2/2018 11:55

If JC was the driver why would Royal Mail shares rocket up from lows in Nov to highs today? Royal Mail is heavily unionised, part Privatised and very easy to renationalise. It has been said Royal Mail will be the first target. IMO it’s the uncertainty regarding inflation over the pond and HFs playing mischief with Brexit etc etc. Have a good day.

[pogue] 28/2/2018 11:49

UtyINV
Its not the bank shares I was referring to it was their bonds and prefs e.g. STAB, STAC, even BOI.
Regards falling out with the US that is something that JC is not worried about he will be moving the UK towards Russia and China. I expect him to cut ties as much as possible with the USA so annoying them will not matter to him. Most south American countries have been hounded by the US for failing to pay bonds but not much really happens as they wait a few years then start giving them more.
Regards the FP rise yesterday I am heavily invested in PFC hoping for a similar reaction there, plus a nice divi I wait, when the probable fine for bribery is finalsied. I am not expecting NG to have such a rapid turn around though unless JC suddenly and unexpectedly announces to change his plans regards nationalisation which for me is the driver just now.

[utyinv] 28/2/2018 11:32

Pogue,

Banks IMV are undervalued and when Brexit is sorted one way or other watch the share price rise.

NG has fallen to unprecedented lows and if you need a stock to hold its capital value then being involved in a stock ‘out of favour’ can be restrictive.

We are living in such uncertain and illogical times (market sense) just look at PFG. Fined, agreeing to raise capital by going to tap shareholders and its share price rose 80% overnight (yesterday), from £5.70 to over £10.

Markets put it down to
Uncertainty being removed, Shorts closing and buying back quickly and Institutions believing this stock could be £13/ Share

Take the above scenario and look at NG. If the uncertainty is removed, ie, final outcome of Hinkley, price cap and US anti-inflation measures then we may see NG being liked again.
As for the Marx Bros they ought to be worried about not upsetting the Yanks because the Yanks have a history of closing down Left Wing /Communist governments one way or other. If that was to ever materialise I would applaud.

Look at the state of Cuba! Just returned from there, nice cars, nice weather etc ...romantically looking at the country through rose tinted glass, in reality a complete mess with poverty and mass unemployment. Venezuela, what has it got? Is it now 10,000 % inflation?. The US even made Russia more Capitalist than Britain since perestroika. The US moves in very mysterious ways and even Presidents have been removed from office prematurely if they don’t act in the interests of Capitalism.

Trouble with selling out of NG into other stock that pays a good income is that you will probably find that business is under attack from the Marx Bros. The Marx Bros do not like anyone to have wealth. Other than themselves. They appeal to those who have been cursed by the green eyed monster.

[pogue] 28/2/2018 11:08

Long post UtyINV
I will reply to couple of bits.
If they shares are falling due to them being proxy bonds why are prefs and bonds in banks for instance not doing the same? I have sold up a few of those with that in mind but the falls, if any, are peanuts compared to NG's fall.
I am not convinced that international law will worry Corbyn too much and he will fight against it, the share price in the meantime will plummet due to the uncertainty as a win by the US side of the argument will not happen overnight. I had this as an income stock but if the share price falls by more than the dividend payable for a few years and has potential to fall more I see no point holding and will wait till it becomes stable or shows reasons for it to turn around. I hate losing capital as its more difficult to replace than income moving from NG to another good divi player is not logical and as the sector is out of favour it is the normal thing to do.