National Grid Share Discussion Threads

[utyinv] 01/8/2019 19:24

Action,
Agreed but IMO need to list separately.

Ofgem think that the decent returns (future returns) should subsidise the UK business, hence it’s proposal only to offer NG a ROE of only 4%. for RIIO II

On top of that, if Corbyn were ever to get into power even in a coalition with SNP, Lib Dem’s, Greens and Plyd Cum.. they all have a weird belief that Utilities should be Nationalised. By listing the US business separately the US business would be untouchable.

As has been said before, any tax due from US derived dividends can be reduced by filling in a W8BEN form as one of my ex-colleagues mentioned at the AGM last Monday.

Dividends and share price would be better protected against the smash and grab philosophy of the Left Wing. AIMO

[action] 01/8/2019 16:35

Biggest need for power tranmission in USA to upgrade old tranmission system. National Grid will do better in USA.

[utyinv] 29/7/2019 15:26

1carus,

Well said 👍

[1carus] 29/7/2019 14:36

There needs to be laws passed here in blighty to stop governments from stealing the assets of private individuals/companies.
Offwhatever and the M&M commission should already have all the powers to keep such companies of the likes of NG in hand, to not be exploitative. And that does seem to be the case. The company is not poorly run and probably offers a good standard of operation for the money it charges, if not it would not be competitive elsewhere.
Thankfully Labour are falling away, and most of the older generation already know what a decade of stagnation feels like in your pension pot, and most are smart enough to know labour's policies will not help that. They are un-electable thankfully.
If NG ws falling apart and causing national issues then there could be an argument for a government to step in , but not when a company is within a deviation of being run within business norms.

[whitestone] 28/7/2019 10:17

National Grid’s overseas plan to thwart Jeremy Corbyn
Rachel Millard
July 28 2019, 12:01am,
The Sunday Times

National Grid’s overseas plan to thwart Jeremy Corbyn

National Grid is considering setting up overseas subsidiaries to guard against the threat of nationalisation under a Labour government.


The FTSE 100 business, which owns and runs the major electricity and gas networks, has been fiercely critical of Jeremy Corbyn’s plan to nationalise them — possibly below market value — warning that it risks scaring off investors.

Bosses are taking legal advice on how to protect shareholders. Options include setting up divisions in Singapore, Hong Kong or India, which have treaties with the UK to ensure investors are paid properly in any state asset-grab. Pension and insurance giants have already shifted stakes in water utilities such as Yorkshire and Anglian to Hong Kong.

The efforts are likely to widen the gulf with Labour, which is targeting power networks, Royal Mail and rail and water companies for nationalisation. It argues that customers are being “ripped off” and plans to compensate investors with gilts.

Shadow chancellor John McDonnell has warned he will pursue shareholders who try to shelter abroad from nationalisation. Last night, he said any “avoidance schemes” would be “completely counter-productive”.

National Grid said: “We are taking legal advice to explore the best route to protect shareholder value.”

[bountyhunter] 09/7/2019 08:31

Also of relevance to NG...

SSE Boss Blames Labour Party For Driving Away Investors - FT (Alliance News) - SSE PLC has found it difficult to attract investors due to the UK opposition Labour Party's stated intention to renationalise energy networks, the Financial Times reported on Monday....

[bountyhunter] 07/7/2019 12:26

Why should NGs US profits be subject to a windfall tax? That would put them at a competitive disadvantage in the US market.

[veryniceperson] 07/7/2019 12:24

They did a windfall tax in 97. Gordon couldn't wait to get his hands on the spoils after private Investment got them running well. 5 billion they took. Have to agree pete. O and another thing they took 5 billion year in tax credits from pensions. Lovely lot and they call themselves the workers party. Sorry guys rant over.

[bountyhunter] 07/7/2019 12:22

McD is a communist at heart, that's why he wants to nationalise everything imho. I don't think it will happen though as the majority can see through him and so I don't see labour winning the next GE with those policies.
Not to say that NG should not spin off the US business as a precaution.

[veryniceperson] 07/7/2019 12:17

Agree Pete.

[pete160] 07/7/2019 10:44

I don't understand why any government needs to nationalise Industries given that they could just implement a windfall tax or limit the scale of price increases, redundancies etc through regulation?Why do they need to take the responsibility and liability of state ownership when they can just take the spoils of private ownership?

[veryniceperson] 04/7/2019 23:05

Gateside. If they can get a sniff of power and a ministerial car they will, believe me.

[10576190] 04/7/2019 21:01

Historically it's either Labour or Conservative, you could say two sides of a coin...

Heads you stay as you are, may even gain a tenth or two
Tails possibly loose something like five eighths

Coalition would be great, as would staying in Europe, taking the currency, Proportional Representation and Federalism while we are at it.

[gateside] 04/7/2019 20:17

Coalitions work all over Europe, but political parties have a single mindedness in the UK due to the archaic First Past The Post voting system. I do not think that the SNP will go into coalition with Labour, besides it would probably need to be a Rainbow coalition with Lib Dems, Welsh Nationalists etc. in order to get a majority. So the chances of Labour Nationalising NG. and other sectors if the Economy are slim, and I see NG. and other utilities as current good value.But hey... I might be wrong.

[utyinv] 04/7/2019 18:30

Gateside,

The SNP have the same socialist policies as the current Labour Party.

Though Corbyn has said there will be no coalition with the SNP, when push comes to shove, if they are first past the post then there will be a coalition set up as Corbyn will do ANYTHING to get the keys to No10 in order to create the new economic revolution his Marxist comrades advocate.

Look at MacDonnell, he is now supporting the idea of being a remain party?????? Why? Because he will go against anything he believes in to get into the Treasury chair.

Boris and Hunt have said they will take the UK out of Europe. However, if you think that all will be fine on 1st Nov think again. If you listen to the European news there is talk that if the Conservatives exit the EU the EU commission would consider allowing the UK to rejoin if there was a change of Government in the UK (anything to keep us in ).

The polls are showing Labour as behind, but have a look at the TV news, papers etc. The big shots from Labour, MacDonnell, Keir Starmer, Long-Bailey, Emily Thornbury (who are always on the TV despite claiming they don’t get any coverage), are all on holiday so to speak, because all the focus is about Boris and Hunt and their policies. Wait till the Conservative election is over and these big hitters will be passing vile rhetoric about either person’s policies. Whilst this internal election is ongoing it’s giving people the feel-good factor, hence feeling that work pays, investments are secure and the future looks bright. Come the end of the election watch all the Marxist resurrect their heads and claim the BBC should make amends for all the publicity they have given to the Conservative Party during June and July. So don’t be surprised if an election is called and the Labour Marxists are given more air time than the Conservatives. The BBC (a Left Wing institution) will challenge any claim of bias during an election by publishing minutes of air-time for each party during the year, even though the majority of air-time minutes allocated to the Conservative Party has been clocked up during this internal election. I hope I am wrong but the way I see it the Marxists are plotting whilst having a nice holiday.

[gateside] 04/7/2019 17:07

Labour used to return 40+ MPs from Scotland, which they lost to SNP - this makes a labour majority very unlikely.

[10576190] 04/7/2019 15:33

Just selling down about a third of my holding, too exposed to JC & labour.

It's all right saying JC will not get in but right now I would not vote for any of them, what a mess they have made of things.

On a labour win with Nationalisation you could well be looking at £3.00 a share in exchange for a Bond with a 2-3% return on said Bond.

For me this is just to much of a potential risk. I will keep a holding but still realistically need to shift another third.

[utyinv] 04/7/2019 13:27

1carus,

Very much still in. Large holding!

But I must add that I have medium to large ( relatively speaking) holdings in other companies that usually off-set the volatility from this stock.

Just wish JP would listen to analysts who are now querying why NG doesn’t mitigate the risk of a Labour Gov by separately listing in the US, something I was advocating for years.

If they did I believe we would see a return to £12 / share

[1carus] 04/7/2019 11:56

UTY, do you still hold a position here or are you out?

[utyinv] 04/7/2019 07:29

1Carus,

In answer to your question, I doubt it!

I have been saying for years that the UK and US business should be separately listed. That way you can protect shareholder value. Though Ofgem has no call on the US business, it is no surprise that some Left Wingers at Ofgem believe NG are getting a nice profit from the US and that should subsidise the draconian returns from the UK business.

Also, my fear is that if Labour do get into power and Nationalise NG as a whole they could sell the US business back to an American Company and use the proceeds to issue Bonds

[1carus] 04/7/2019 04:13

If Labour were to win an election, which is looking unlikely, and if the share price today equates close to the value of the activities in the US, it seems like a fair hold still to me. I have rather a lot of these and it's not been fun holding them for the last 2 years tbh, I am now about even on my original share price, so at least I can now look at my divi payments as profit for now. Is there any confidence that the biz would protect shareholder value if it looked likely that Labour would win an election?

[veryniceperson] 03/7/2019 15:48

UtyINV Thanks for your informative posts, good luck with everything. Still got my SSE well down on them, need to get over 1400. Going to put my money from NG into Merchant Trust, a steady share paying 5.3% at present price.