National Grid Share Discussion Threads

[laurence llewelyn binliner] 26/5/2024 07:53

#Natasonline, I loathe raises/dilution, it hurts, but the impact here will depend on how long you have been a shareholder and what your costs are on a total return basis, to be able to add some more at 645 is very useful to reduce your average costs further, post XD add some more at 8XX will also be useful, sit on them all for a year and see where we are then, it is not possible to judge from here today the resulting share price and corresponding CG when the dust has settled a year out and the raise/works have started to add value..

[1carus] 25/5/2024 23:14

Hmm, I know copper is good in motors and generators... but when I studied transmission lines I thought they were aluminium. Could be wrong I guess. Not saying coppet is not a good play though.

[natasonline] 25/5/2024 22:42

I don't think it's the raw material miners you want to be looking at.https://www.statista.com/statistics/271030/export-cable-suppliers-for-offshore-wind-farms-in-europe/

[bountyhunter] 25/5/2024 22:34

>> Bottom line: need loads of copper!!

That's got me thinking, which companies are the largest listed copper producers in the world? Rio?

No, in answer to my own question..

[utyinv] 25/5/2024 21:43

BTW, not wishing to add to the woes of how this Rights Issue has been handled, but has anyone realised the benefits to the Board of Directors?

These guys ( guys and gals ), are allocated bonuses to a value and paid in non contributable shares, ie, for example, if say John Pettigrew gets an award based on £1,000,000, because the number of shares in circ has increased, the share price will be much lower.
So using the above example one week ago if the £1,000,000 bonus example was based on £11.39, fri 17 May, John would theoretically be awarded 87,796 shares.

Due to the debacle of the Rights Issue the current price is £8.894. ( closing price Fri 24 May). We have just had the final results and the award of share bonuses for the following period is normally awarded by the remuneration committee after the final results.

In the example above at £8.894 the number of shares needed to be given / put aside for John, would be 112,435 shares not 87,796 shares.

In time, using investors money / capital to build the so called improved connectivity and the Company in five years is worth £100 billion ( share price based on 4.8billion shares in circ would be £20.80), then rather than John taking home £1,000,000 worth of shares, his bonus would have realised into £2,342,395.

This is his reward for using our money and pain with no affect on him other than to screw existing paying shareholders.

[natasonline] 25/5/2024 21:33

I don't think the sale of their US operation would raise the 3 trillion they apparently need. I think they will just keep using their share holders like a piggy bank until we own nothing and drink bugs smoothies for breakfast. 2020 article:https://www.current-news.co.uk/reaching-net-zero-to-cost-3bn-says-national-grid-eso/Also the US operation is a good defence against nationalisation. Labour would have a hard time nationalising New York infrastructure. Not that I'm against Nationalisation at this point, I'm looking to sell out of NG.

[freedomexpress747] 25/5/2024 21:14

Possibly, a stupid point to make but some great discussion on this board... Why not effectively split the company into a US operation... sell it off and then use that money to fund the UK expansion? Some years ago, went to a presentation that highlighted that we needed a UK subsea NG around the UK to connect up all offshore wind farms etc. Bottom line: need loads of copper!!

[natasonline] 25/5/2024 20:37

Sorry, that last Link went behind a pay wall, heres a 2010 BBC article:https://www.bbc.co.uk/news/10129932Looking at these archives has made me far more positive about this whole ordeal.

[natasonline] 25/5/2024 20:21

Here is an article from 2010 as to why they needed the 3.2 billion rights issue. Sound familiar? De-carbonisation anyone?https://www.investorschronicle.co.uk/2011/09/26/tips-and-ideas/share-tips/national-grid-launches-rights-issue-gy7wepW69XC3EPq17rJUdN/article.htmlThe good News is looking at the NG chart after 2010 the share price when on a 80 percent+ bull run.

[natasonline] 25/5/2024 20:10

I was doing a bit of digging and found a MSE thread from 2010 when National Grid presumably did their last rights issue. Well I thought is was interesting, thought I'd share. https://forums.moneysavingexpert.com/discussion/2492263/national-grid-rights-issue

[bargainsniper] 25/5/2024 19:58

Having had time to digest all the facts i will be taking up my rights and overall a lot more positive.

[bountyhunter] 25/5/2024 19:27

not even tin plated now

[action] 25/5/2024 18:31

I played NG game when they were about to special divi and reducing the share count. Could not make any significant profit. The moment I sold it went up by 200p. SODS law

[lippy4] 25/5/2024 18:29

gold plated thats a laugh...cromium..

[viscount1] 25/5/2024 18:16

Yes, all three.

[natasonline] 25/5/2024 18:16

@Laurence. True, we all know the risk of holding single equities. This one just hurts because it's not a volatile Tech stock, it's a boring 'gold plated' dividend payer that has screwed us.My plan is to take up the Rights, sit and hold and sell out if the share price ever gets back to 10.00NG. can F*&k off IMO. I've lost all trust in their management. I'd rather it have got nationalised than this.

[laurence llewelyn binliner] 25/5/2024 18:02

Damage limitation IMO, and how to best recover from it, nothing we can do about the placing or the discounted price, add rights, add more and hold or sell your rights, fold the position and move on..

[bountyhunter] 25/5/2024 17:46

Thanks viscount. Do you know if any of those shares are normally available to buy within an ISA?

Action, yes that's some small consolation, at least I made a profit albeit a significantly reduced one (and saved myself from the full 16% drop over the two days). My trust and confidence in NG management is now blown however.

[viscount1] 25/5/2024 17:35

Re: ISAs

You can take up the rights issue outside of an ISA even for an NG position in an ISA. There is no legal issue doing so; it all depends on whether your broker can do the paperwork or not.

[viscount1] 25/5/2024 17:29

"I must take a look at Nexans, any other suggestions along the same lines?"

Basically Prysmian, NKT and Nexans in Europe, or several Japanese companies that you will probably not be able to buy.

The high-tech cable industry is a solid oligopoly and probably worth a look.

[action] 25/5/2024 17:05

Share price moved up in last month or two

[bountyhunter] 25/5/2024 16:49

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 real loss in just two days, I make that a 180/1128 *100 = 16% loss over the two days in real terms based on the current share price and NGPN price, assuming you sell the NGPN rights at today's price. All with the icing on the cake of the rebased dividend.
I took the hit on Thursday selling out at an average price of ~£10.25, glad I did although still totally p*ssed off with this fiasco.

[bountyhunter] 25/5/2024 16:33

However the Balfour Beatty long term chart doesn't look great, back to Nexans, I've not found any others.

Just checked the Nexans chart, the share price has risen by nearly 20% in the last month! Coincidence?