National Grid Share Discussion Threads

[tim 3] 08/3/2018 14:10

Corner turned?

[careful] 08/3/2018 10:12

Odd index the ftse100.
Dominated by oils, miners and internationals this last year or more.
Domestics shares and utilities have been slaughtered.

[hillbrown] 08/3/2018 10:04

I bought 18k NG. shares at average 7.49 earlier this week on CFDs on the expectation that there is £1.50 minimum upside here WITHIN THE YEAR. They are ridiculously cheap imo.

Also bought 2k ULVR cfd at 37.10 looking for £5 minimum upside. Another one far too cheap.

Also have 600k LLOY mostly on CFD AT 66.7p bought over the last few months, another which I rate as cheap. Looking for 75p within the year.

Plus divi's of course.

Due the underperformance of the uk markets in general we are surely due a surge.

[minerve] 07/3/2018 23:26

I agree careful.

This limitation on cost of equity is on UK operations only so how that translates to shareholders and what the overall impacts are I am not quite sure - yet. Perhaps someone following this more closely will be able to enlighten us?

[careful] 07/3/2018 10:49

At last some evidence that regulation may be sensible after all.
Corbyn's threats threw HMG off track.
The way forward will be sensible regulation, to demonstrate that correctly regulated private companies are better than nationalisation.
A good start, all utilities are up today.

Gove will sort out Thames Water, located offshore and owned by a bunch of financial tax avoiding cowboys.
Things are looking better.

[skinny] 07/3/2018 10:09

Ofgem's RIIO-2 Framework Consultation

Ofgem today published their RIIO-2 Framework consultation document, in which they set out their proposed approach to the next gas and electricity transmission price control (RIIO-T2).

We note the wide range of options the consultation document contains and acknowledge the focus on long-term thinking for critical infrastructure, incentive outperformance opportunities for well-run companies and the continuing alignment of consumer and shareholder interests under the RIIO framework.

The RIIO-2 framework consultation document is another important step in the process leading to a new price control in April 2021. We will continue to work constructively with Ofgem over the next three years to achieve the best outcomes for all stakeholders. We will keep the market updated as the process moves forward.

[srpactive] 07/3/2018 10:07

Well done all here.

dyor

[trader2] 07/3/2018 08:11

DNO's really being squeezed by OFGEM. Praised for performing these past years then kicked in the watsits as they can now only make 3-5% returns - which after inflation is naff all. If I were a DNO I'd turn in my licence and tell OFGEM they can distribute the power themselves.

[srpactive] 06/3/2018 10:28

Agree, looking better here, if you can close above 765.7p
you will be away, good luck all here, dyor.

[gutterhead] 06/3/2018 08:44

recovering slowly, 800p next stop

[andyj] 05/3/2018 14:40

Certainly seems to be an unusually long stalemate at 7.40 given the volatility.

[abbotslynn] 05/3/2018 13:38

Steady share price,settled and for sustained rises in months to come IMHO

[pierre oreilly] 04/3/2018 16:29

For good engineering reasons NG should be left alone - political involvement will almost certainly cause blackouts if previous nationalised industries are an indicator of politicians practical competence.

Well that wasn't the case when the cegb was nationalised. I'd say the chance of power cuts - rationed or not - is far higher today than when the cegb existed. In any case, there always was and is and will be a high political involvement in ng and the esi in general.

Today, there's no one at all looking after the overall efficiency of making and delivering electricity. Decisions previously (in the cegb) were made with that in mind - producing the lowest cost electricty while maintaining a very high reliability. imv, no one does that today, and the tens/hundreds of companies now involved all (naturally) look after number 1, often at the cost of the system as a whole.

The research labs of the cegb kept our esi as world leaders in the technologies involved- they simple don't exist anymore (with most research staff tranfering to ng as it happens).

I did years of work on the denationalisation, and at the time thought it a great idea, but now having seen what has happened in practice i think it was a really bad idea.

For those worried about nulab renationalising ng then it will never happen, simply because the gov can control the uk business of ng without owning it.

[utyinv] 03/3/2018 14:08

Interesting Article by Tempus in the Times today (Sat 3rd March)

It focuses on National Grid and the trouble it went to in order to keep Control of the System Operators role in 2016. having convinced Government and Ofgem to keep it, the business is now in the process of being completely ring fenced (due to complete in 2019).
With the focus on National Grid this week in ensuring there was sufficient Gas and Electricity to meet demand (even though NG by law are not responsible for a lack of Generation to meet demand, it is responsible for ensuring sufficient plans and forecasts are put in place with associated ancillary contracts etc), the focus of attention in the media may not warrant the paltry 5% of total profits that System Operations brings in.

It goes on to say by 2020 the US business will be bigger than the UK business (it is already bigger so the Times needs to keep up), yet the Utilities in this Country along with National Grid have performed poorly in comparison with American Utilities. This is partly due to political pressures from Corbyn and Ofgem which in the latter case, Ofgem is going to put the squeeze on Utility profits (an announcement by Ofgem is due to be made next Weds).

On the Corbyn subject, it suggests that the threat may not be as the media would like to portray, ie, even with Utilities currently at such low valuations the money required to Nationalise the Energy Sector may be a prohibitive aspect, (despite what MacDonnell states). Yet if Corbyn were to get into power and get his hands on the NG's System Operation business that would give him sufficient Control of the energy Sector whilst delivering on his manifesto pledge.

It also suggests with the US business being bigger than the UK business, NG should consider having its main Listing in the US.

It then concludes, with the possibility of Corbyn taking the easier option of taking control of NG System Operations (which only accounts for 5% of profits) and the main listing of NG being in the US then that might be a blessing in disguise to shareholders.

Both options have been suggested by myself and other posters on this bb and now it seems the 'Times' newspaper with more authority and a greater readership than this bb, is now of the same opinion.

[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 ?