Natwest Share Discussion Threads

[whatwoman] 24/12/2006 15:23

If NWG is the first takeover bid of 07, then I know I'll have a bumper year.

Have a great Christmas break and a very healthy and prosperous 2007.

[sllab101] 24/12/2006 13:02

Hope you all have a great xmas,and fingers crossed for a newyear bid.

[markie7] 20/12/2006 20:45

haha - very good!

[optomistic] 20/12/2006 15:47

dumpling, doesn't it just make you smile, such respected analysts :-)

[dumpling] 20/12/2006 14:33

Merrill Lynch recommendations for NWG
23 Sep 03 Price 106.75 Sell.
9 Jun 04 Price 133.24 Sell.
8 Dec 04 Price 163 Sell.
23 Feb 05 Price 174.25 Sell.
9 Mar 05 Price 168.5 Sell.
8 June 05 Price 204 Sell.
1 Jul 05 Price 224 Sell.

No recommendation this year.
Enjoy your bonuses lads.

[aspers] 14/12/2006 19:35

Thanks for that Bobbyjim...my sentiments also.....even if M ad A activity comes to nothing this one will be a great earner....a good solid stock to hold onto or take a big profit if M and A comes to fruition.

[bobbyjim] 14/12/2006 17:08

Investors Chronicle - 15 December 2006

NORTHUMBRIAN WATER (NWG)

The takeover wave sweeping the water sector shows little sign of receding, and Northumbrian Water Group (NWG) is seen as a likely target. That's because the Ontario Teachers Pension Plan, which has a track record of investing in UK infrastructure assets, owns 25 per cent of NWG's shares. What's more, although NWG finance director Chris Green says that Ontario Teachers is a long-term investor - with an investment horizon of maybe 30 years - rumours persist that the Canadian pension fund could team up with another player to mount a full takeover, or possibly sell its stake to another bidder.

Meanwhile, as the City continues to speculate on NWG's future, the group has got on with running its regulated Northumbrian Water business. And this business performed solidly in the first half, with a rise in water and sewerage charges driving a 5.9 per cent increase in revenue in the period to £293m. So, despite higher energy costs, NWG's operating profits rose from £115.5m to £124.2m. The group's half-dividend rise was also in line with a commitment to increase dividends by 3 per cent ahead of inflation until 2010.

House broker Deutsche Bank now expects full-year adjusted EPS of 21.08p in 2007 (from 19.6p in 2006).

Ord price: 309p Market value: £1.60bn
Touch: 309-310p 12-month High: 330p Low: 224p
Dividend yield: 3.5% PE ratio: 16
Net asset value: 61p* Net debt: 644%
*Includes intangible assets of £67.9m, or 13p a share

Half-year Turnover Pre-tax Earnings per Dividend per
to 30 Sep (£m) profit (£m) share (p) share (p)

2005 295 64.3 9.11 3.52
2006 316 75.5 10.97 3.75
% change +7 +17 +20 +7

Last IC view: Good value, 296p, 27 Oct 2006
Ex-div: 20 Dec
Payment: 2 Feb

Valuations across the water sector are frothy, but NWG's premium to its regulatory asset base is among the lowest, so it looks like one of the safer bets - as well as being a takeover target. Good value.

[fhmktg] 11/12/2006 14:16

Unsettling to see these drifting lower - can't somebody start a good takeover rumour!

[aspers] 11/12/2006 11:21

Are well have decided to flog my WMPY shares at a small profit and top up with these this morning.......hense the fall and the instant rise in Wimpey!!!!

[topvest] 10/12/2006 14:35

Yep, floated on AIM at £1, although I think I bought in around 120p ish. Transferred to the full list after a bit a year, I think.

[blueliner] 10/12/2006 10:11

Whatwoman, NWG was floated at circa £1, I know because I held back until the £1.50s. So I have doubled my money. It was another double bagger I sold recently, KEL to free upsome cash but hanging on to this one - looking for a higher share price take out than at current level, but no rush.

[Abuse team] 09/12/2006 21:51

Post removed by ADVFN

[whatwoman] 09/12/2006 21:03

Can any of you who are well informed please tell me how NWG is valued at 19% over its regulatory asset base(RAB), and yet it has a p/e of 15.

Yet AWG, supposedly was valued by its buyers at 25% over its RAB but has a p/e of 75. A crazy p/e of 75 must mean that the buyers of AWG must have valued it at much much more than 25% over its RAB.

Some piece of info is missing because it just doesn't make sense.
Can you imagine what NWG will be priced at if it was valued at a p/e of 75 like AWG, or even Pennon Groups' p/e of 56.5.
Yes £15.43 and £11.73 respectively.

After all the earnings per share of AWG is only 21.1p and Pennons is only 9.9p. NWG has earnings of 20.55p per share.

[whatwoman] 09/12/2006 20:22

Unless I am mistaken NWG was brought to market at 198p, so at Friday's share price how did you manage to make more than 100%. The share price never went below 150p.
I stand ready to be corrected if I am wrong.

[topvest] 09/12/2006 17:57

I sold mine on Friday. I will probably live to regret it, but a 100%+ profit is good enough for me. Premium to regulatory asset base above of 19% is not what I would call cheap, even if some are prepared to pay 30% more than asset base in a takeover situation. Good luck to those that remain!

[ivancampo] 09/12/2006 09:34

A lovely write up in the Telegraph Money section.......issues buy rec.

[fhmktg] 06/12/2006 14:11

Maybe they want the cash to go shopping - buyer rather than seller?

[ygor705] 06/12/2006 11:52

Balance sheet cash up £60m to £360m on a stock with a market cap of 1.6bn. Offers a 20% discount to any bidder who can get his paws on the cash! Figures good but surprised that the divi increase wasn't bigger.