National Grid Share Discussion Threads

[utyinv] 05/9/2023 18:44

Yanks at it again!

[utyinv] 04/9/2023 14:49

Without sounding like a broken record, the only way this share price will reflect true value is if the Company adopted a quarterly dividend. Thus creating more stability and less volatility . Hedge Fund parasites won’t have much time in between dividends to short and buy back.

I would also like the ‘City’ and politicians to be less ignorant when looking at NG. How many times when there has been an issue with Generation or Energy retail Companies do they show a NG Transmission Line? NG only accounts for less than 5% of bills if that has increased slightly its due to the imposition put on NG to connect clean energy sources to the system without proper reward / incentive. If Tesla ( car production ), can have a cap close to $1 trillion, I cannot understand why an essential commodity which is 100% outside Government hands shouldn’t command a market cap of £100billion. After all an unreliable overpriced car is less important to the public than Essential Electricity when you want it night or day, even on Christmas day.

BTW £100Billion cap for a world leading Utility is not unrealistic if put on a level playing field. The share price would be £27/ share. Brings things into perspective a bit doesn’t it.
Also got to remember every household were given free shares at Privatisation, so you can kiss goodbye to any argument that stocks and shares in utilities are the domain of the rich. The well off kept them rather selling them for holidays etc etc.

NG is not a Charity. It is a fair, well run efficient Company and shouldn’t be confused with the Generation or Commercial Supplier rogues.

[utyinv] 23/8/2023 12:50

Viscount1

I beg to differ when dealing with blue chip FTSE stock. Take for example Lloyds. Been doing buyback for years and the share price is struggling to get above 45p. After the financial crisis when AH took over at the helm, the price was 61p. After 12 years and Charlie Dunn in charge of the bank after AH left, the share price is 42p.

RIO, GSK, BT, PSN, ( just a diverse selection of the Main Companies that form part of the FTSE) all have done extensive share buybacks, all of which are at their lows in terms of share price. Share buybacks are for senior management of Companies that have run out of innovative ways of improving performance and building revenue. It’s an ‘Accounting217; fix to allow the Directors to meet their targets.

Wishful thinking I know, but I would like Directors pay to be linked to share price. If the share price rises by 10% a year they have met their basic targets to justify their basic pay. Increase share price by 20% they deserve a bonus. If share price falls they deserve their basic pay to be cut accordingly.

Don’t forget, people are not entitled to claim a salary for work not done or targets not achieved. They (Directors), get paid well to deliver. If they don’t deliver they should be sacked.

[fludde] 23/8/2023 10:26

And pay dividends quarterly.

[viscount1] 23/8/2023 10:07

Yes, buybacks work, as evidenced by Warren Buffett, probably the greatest investor in history.

You have a problem with Berkshire's record?

[utyinv] 23/8/2023 09:43

If you ban share buybacks pay the shareholder a good dividend, let that shareholder decide whether to buy more shares in the Company by reinvesting or reinvest elsewhere.

[utyinv] 23/8/2023 09:38

So buybacks work?

So many Companies buy back shares but they don’t clearly advertise that they issue new shares to pay directors remuneration and bonuses.

The buyback is a complete fix because it links too closely with Directors performance targets of improving earnings per share. So Directors and the CEO doesn’t really have to work or improve performance of the Company, all they need to do is get buybacks sanctioned by the mass institutional shareholders ( that they are in cahoots with)
and the earnings per share increases, ie,

Company has 100 shares, e/s say is 15p, current price per share ( irrelevant ) £2.25

Buy back 20 shares (leaving 80 shares in circ) e/s automatically increases 18.75p if the revenue is stagnant.

Some would say that the share price would increase but it invariably doesn’t, because it pays the financial institution contracted to buyback shares to keep the price low.

Before buyback took off big time over the last 15 years, the average P/E of a British Share was 20. Now you would be lucky to see an average PE of greater than 10 unless its a speculative share.

Ban share buybacks, do not reward directors based on earnings per share. Reward Directors on how much the share capital has increased.

Do not give shares to Directors or Employees to reward performance. Everyone is paid a salary to do a good job. So why pay bonuses?

A bonus used to be infrequent years ago and only issued when extraordinary performance was achieved.

Look at share prices of the main FTSE Companies, they are undervalued by 50% in comparison to other indexes.

[utyinv] 22/8/2023 13:05

Anhar,

I realise and understand the conveyed message. Having invested in the stock market for over 40 years, I still stick with the view that some unscrupulous Shysters are manipulating the market for their own short term greedy ambitions. Unfortunately, the regulators and Governments allow it to occur.

The point I was making, was that in this crazy world we don’t always have a correlation between a sound business / Company and its share price.

Look what happened to those that ‘Shorted’; VW a few years ago when Porsche ( separate entity at the time), bought the depressed, over shorted stock, only to see many Hedge Funds go bankrupt because they were outwitted. The Hedge Funds complained to the regulators saying Porsche should have advised them that they were going to buy shares on mass beforehand. Why? They want it both ways.
Look at the naive Kwasi Kwarteng, who before announcing his intentions at the dispatch box, went and spouted confidential info to his so called ‘City’ mates whilst drinking Champagne. They stabbed him in the back ( I am not a fan of Kwasi but just highlighting what type of people the ‘Shorters̵7; are).

The term Shyster is a term that fits well with certain Hedge Fund Grifters

[anhar] 22/8/2023 11:50

My point was to parody the common message seen all over ADVFN boards that when the market or a share doesn't perform as the investor intended, that someone else is to blame. Daft conspiracy theories are often posted about some nefarious group that has it in for us.

These posters rarely blame themselves for their own poor decisions or failing to appreciate the risks involved in equity investing, it's always someone else's fault, deliberately manipulating stocks to harm them.

[gateside] 21/8/2023 13:07

UtyINV - excellent post.

[utyinv] 21/8/2023 12:43

Anhar,

‘Foreigners217; have contributed to our society and have been intrinsic to new innovative ideas. Got to differentiate what ‘ForeignerR17; means. I know some great Europeans that have been in the UK since WWII and their offspring are now Surgeons, Chartered Engineers, Scientists, Teachers etc etc.

Got to also draw parallels with what’s home grown. Lots may despise the migrants that are coming over trying to rip off our system ( excluding those that want to contribute and be independent / self sufficient). But got to realise we have a lot of indigenous to this country, who are wasters and never intend to work or contribute to society. Generations of wasters that we are all contributing to.

Re: Bankers, definition required. Many Bankers who work in our Banks are doing a valuable and important job. I am not talking about the wide boys / girls that take risks with our money. Too many people blame banks for their own failures, ie, in large, the last crisis in 2008 was created not only by unscrupulous Investment Bankers but by Joe Public who wanted bigger houses, cars, foreign holidays etc all the things they could ill afford.
People have lost the philosophy and understanding that man was born to work and to understand basic economics, ie, earn £1 spend 90p = sustainable, earn £1 spend £1.10 = disaster.

Shorters, are imo parasites they do not create growth, they don’t build anything or contribute to society’s future growth. I have seen a lot of good company’s go under because of Shysters that have spread untruths about a Company and panic in the Market in order to gain a quick, short term buck.

[anhar] 21/8/2023 12:11

Yup, I blame... (insert pet hates - eg. foreigners, bankers, shorters, Martians etc.)

[gbh2] 18/8/2023 09:40

I'm more concerned with loss of capital than it's epic, it's a long time since my NG holding was this near breakeven!

[pierre oreilly] 18/8/2023 09:14

It's NG. bit I prefer NGC, the dot makes things awkward.Not sure matters though.

[utyinv] 17/8/2023 17:20

😂👍

[newbank] 17/8/2023 17:08

Pierre,

Using old acronyms, ie, NGC, its NG now and has been for some time.:)

[pierre oreilly] 17/8/2023 16:10

Not the best timing for my buy yesterday. But as a safe income stream je ne regret rien. The risk in NGC is very low compared to other FTSE stocks.

[gbh2] 16/8/2023 17:18

imo the UK market being sold down the river by foreign investors!

[1carus] 09/8/2023 17:20

UtyINV/gbh2, thanks for your responses. I don't have a large holding here but have held for a long time. The issue is that although the divi's have been welcome the money could have been better invested. I think my plan will be to sell at anything above 11.00 next time it gets there then buy back in at below 10.00. It is 10% every 18 months to 2 years plus any divi you pick up. Not too bad and fairly safe with a prospect of better if the overall value starts to assert itself. Just disappointing like many UK shares that they don't seem to have fair market value etc.

[gbh2] 09/8/2023 10:37

Divi in first thing, reinvested but not in this.

[freedomexpress747] 08/8/2023 20:38

Hi, I have looked at NG a lot, and this week become a shareholder. My reasoning is primarily structural demand potentially on a massive scale. I also like the US diversification. Whilst somewhat indebted, that's fine if it enhances earnings. I also see that as and when gilt yields fall, as they will do, investors will look for the income cushion elsewhere. Of course I might be wrong or a bit early, but I can't see much downside, even a labour government will need transmission.