National Grid Share Discussion Threads

[natasonline] 25/5/2024 10:02

Kibes. We normally expect NG to pay a 5% dividend. Everytime I've bought more shares in NG is during a dip to lock in a near 6% dividend.Management have stated next year the dividend will be 0.45p, so by my calculations to get a 5% dividend return the share price will have to be 9.0 pound.I expect 9.0 pound to be it's base level next year.

[newbank] 25/5/2024 09:54

With the extra funding, the Company will be cash rich to fund projects. Is it just projects or is it a side angle to ensure Pettigrews remuneration increases by 20% each year.

A question was asked by a shareholder at last years AGM via Zoom / Teams, where the individual questioned Pettigrews 20% increase. The new 'Chair' disputed the % rise, but because the question was pre-delivered over a vitual meeting, the shareholder couldn't come back with evidence of figures.

The Shareholder was absolutely right, whilst pensioners in the Company got 5% rise Pettigrew's rise was 20% from £6 million to £7.2 million.

What has he done to justify that rise in remuneration?

Two years ago the share price was around £12 / share ( as indicated in Uty's post 9057 ), since then the share price hasn't risen, in fact it has fallen, and based on the main deliverable / KPI of a CEO: to deliver a return on Investor's capital and to maintain the value of the capital, Pettigrew has failed. So why the increase?

[skinny] 25/5/2024 09:53

Bounty - as it looks like a hook, perhaps this fish should be next to your chart.

[kibes] 25/5/2024 09:50

This rights issue has gone down like a lead balloon. How low will the price go? People only buy this to get the dividend which will have to be reduced as eps will be reduced by a factor of 24/31.

[mirandaj] 25/5/2024 09:48

bountyhunter,

Thank you so much for keeping the information at the top of this so up to date all the time. It is very useful.

[bountyhunter] 25/5/2024 09:36

Uty, this kind of thing seems to always get leaked to the markets to some extent. In this case they do seem to have largely kept the lid on it judging by the 10 day chart but the increase in short positions does tell another story!

[bountyhunter] 25/5/2024 09:31

I thought that Stammer was the risk, not our very own board of directors!

[dexdringle] 25/5/2024 09:27

I bought some yesterday for £9. First time holding.

I do feel for loyal existing shareholders as this whole thing (the method and purpose of the rights issue plus announcement about dividend cut) seems very odd and has clearly caused a net loss of value to them.

And you can't arrange something this big without someone finding out about it and acting on that information.....

[skinny] 25/5/2024 09:15

They've shot themselves in the foot - as for existing share holders.....

[natasonline] 25/5/2024 08:56

No one can tell you what the right answer is Viscount, due to the money down the drain spending program and the Rights Issue all the fundamentals of the company are about to change.My 'guess' is in the coming weeks as a fresh investor you'll be looking at NG with the same value fundermentals it had at the start of the week before this announcement and subsequent price crash. The management team have not created value, they have shot its existing share holders in the foot.

[viscount1] 25/5/2024 08:29

"Hi I got some cash should I invest now or wait."

It's important not to let the nature of the corporate action or the time limit sway your decision.

The key question to ask is: "do I want to own more or less National Grid"? If more, then invest. If less, then do not invest and either sell the rights or take the cash-out at expiry.

I own some NG, but I have enough even after dilution so I will be taking the cash.

[bountyhunter] 25/5/2024 08:01

You're not missing anything at all I'm afraid natasonline. Management have robbed shareholders to fund their future plans rather than funding with debt which would be the usual approach, and that's even before we can attribute any loss in value directly to a labour government! A lesson in how to decimate value and alienate shareholders in just 48 hours.

[s2lowner1] 25/5/2024 07:08

Thanks natasonline.

[natasonline] 25/5/2024 01:59

Link to the Morning Star Article I've just referenced:https://www.morningstar.co.uk/uk/news/249681/national-grid-shares-plunge-on-renewables-plan-and-dividend-doubts.aspx

[natasonline] 25/5/2024 01:48

Morning Star report:"National Grid subsequently said it will decrease its dividend from 53.1p per to 45.3p per share as of next year to accommodate the plans, although it assured investors it will increase dividend payments again in line with inflation at a later date."This year we received 58p per share. I currently hold 4522 shares, so this year NG will pay me aprox 2,600K in dividends, if I take up my rights and buy 8,500K more shares, next year in 2025 I will receive aprox 2,600K dividends. Am I missing something? I'm paying 8,500K just to stand still income wise. Right? Morning Star also give a estimate fair value price of £10.40 after the theft is complete.

[dexdringle] 24/5/2024 22:48

Buyer at £6.45 🤣

Good luck with that

[natasonline] 24/5/2024 22:42

I'd avoid it even after it has stabilised. Who's to say we won't get robbed like this again in the future?

[antoniogramschi] 24/5/2024 22:38

I am avoiding this one until the share price has somewhat stabilised

[shaf200] 24/5/2024 22:18

Buyer at 645p.....

[s2lowner1] 24/5/2024 21:00

Its not just the RI, some of the decrease may be down to the announcement of a general election about the same time. This seems to have hit other utilities like Drax UU and SVT. The % reduction over the period (from 21st)being 12.4, 7.2 and 6.8 respectively.

The favourite to win Kier Starmer has announced labours intention to create a new public sector owned energy company Great British Energy.
Its objective being to harness Britain’s sun, wind and wave energy to:

Save £93 billion for UK households.
Deliver one hundred percent clean power by 2030.
Cut energy bills for good.
Create thousands of good local jobs.
Deliver energy security.
Make the UK energy independent.
Labour will build an energy system for the future, run for the British people.

There has also been the announcement today of the reduction in electricity cap

I would be inclined to at least leave it until after the 12th june before I thought about investing if I hadn't already got a holding.

[jsforum] 24/5/2024 20:35

I'm waiting - I kicked myself for missing the boat a few months back when it was 900p - I thought about buying this morning but glad I didn't. Will consider buying at 700p

[natasonline] 24/5/2024 20:31

We have been scammed. How long are you guys planning on living? If you're lucky enough to be 10 years old you might be able to get your money back before you meet your maker. "John Pettigrew, National Grid's chief executive, said the fresh investment would add "single digit pounds" to bills, with the cost recovered over a period of up to 60 years. The switch away from gas-generated electricity to renewables would also reduce costs, "so ultimately, the overall bill to consumers will come down", he said."

[bountyhunter] 24/5/2024 19:57

889p close, not that far off the 865p I suggested yesterday.

So that's a 238p/share drop in two days in exchange for 200p (NGPN) * 7/24 = 58p/share if you were to sell the NGPNs now. A 180p/share loss in just two days! This is about the last share I would have expected that to happen to.

I'm glad I cut my losses and sold out at £10.35 / £10.17 yesterday now (2 batches) although I'm far from happy with this fiasco.

[csalvage] 24/5/2024 19:46

Hi I got some cash should I invest now or wait.