Pennon Share Discussion Threads

[harrodsfree] 02/1/2011 20:34

Wellsi. Other than the fact that they are well managed and have a progressive dividend growth plan, No. And I'd agree, probably looking like a retrace is likely in Q1. But if you bought at 400p then you're getting solid yield on this.

For that reason, I'm still holding and will ride the next dip. Possibly buy more but I doubt it will come low enough for me to do that. I'd only sell if I had an alternative to put my money. RSL is a possible.

[miata] 02/1/2011 20:33

SSE may well be more attractive; AV and BLND are higher risk.

Perhaps what you might have overlooked is the attractiveness of defensives when the FTSE falls back.

[wellsi] 02/1/2011 20:17

Moving into 2011 are there any compelling reasons to continue holding PNN?

I bought in during 1H 2009 and it has performed well since then, yet I cannot see it realistic for the share price to continue rising as in 2010 when it was ~+20% also the increase has meant that the yield is not attractive compared to other companies (eg SSE, AV, even BLND).

Am I missing something?

[miata] 25/11/2010 13:03

HALF YEAR REPORT ON THE SIX MONTHS ENDED 30 SEPTEMBER 2010

Pennon managed a small increase in half-year profit as a big jump at recycling business Viridor offset a decline at South West Water. Profit before tax for the six months ended 30 September grew 0.7% to £96.2m, with Viridor contributing £28.6m, up 29%, and South West Water £70.2m, down 0.6%.

DIVIDEND
The interim dividend of 7.5p per share represents an increase
of 7.9% for the half-year. It will be paid on 1 April 2011 to
shareholders on the register on 21 January 2011.

The Board's stated policy is to grow the Group dividend by 4%
above inflation per annum up to the end of 2014/15.

[miata] 13/11/2010 20:15

I'm surprised any of you were worried, this happened long enough ago for any material contingent liabilities to have to have been included in the statutory accounts.

[sllab101] 13/11/2010 20:03

optomistic, thanks, saved me from selling.Regards.sllab

[huttonr] 11/11/2010 15:24

Optomistic - thanks - makes me feel a bit more comfortable.

[optomistic] 11/11/2010 13:24

Prompt reply to my email, should alleviate any investor concerns...premature sale on my part.

============================================================================

Dear Mr
Thank you for your email.

South West Water Authority has public liability insurance in place which should cover claims resulting from the Camelford Incident. It is not anticipated that Pennon Group will attract any liability.

Kind regards
Sue

[optomistic] 11/11/2010 11:06

A firm showing this morning, appears that the market is unconcerned by the Camelford situation.

[optomistic] 10/11/2010 23:57

Huttonr
I did take the safe option and Pennon has been one of my better forays.
I have traded them for 20 months (not day trade) with every trade making good returns, so yup I'm happy with Pennon and look forward to going in again when the outcome is more certain re Camelford.
btw I did email them today asking about the situation re compensation, somehow I don't think I am going to get a definative answer.
Any reply I receive I will post on here.

[huttonr] 10/11/2010 18:05

Thanks MIATA & Optomistic
Optomistic - I'm not sure that you're living up to your nickname but obviously a safe option - I hope with a good profit.

I assume that they will have insurance to cover this type of risk. I think what concerns me is that coroners have their own rules and a negligence finding could result in a later civil suit (who would fund it?) or a prosecution...
I think I'll stay with it for a while but watch.

[optomistic] 10/11/2010 12:29

I had too much at risk so took the safe option this morning and sold all my holding. If the situation is clarified by the company and did not involve potential high compensation payouts I would re-enter if the price was right.

Good luck to all continuing holders.

[miata] 10/11/2010 11:14

IMHO not a material exposure.

[optomistic] 10/11/2010 09:27

Huttonr
Exract from the report:

"Following the testimony, the South West Water Authority (SWWA) applied for the inquest to be adjourned in order for their own scientists to consider the evidence."

Perhaps the share price has gained as the inquest has been put back a while.

Like you I would like an authoritive view as to the exposure, if any, Pennon has to this tragic event. If compensation has to be paid to these unfortunate people in that area at that time then it must be paid. At the moment the market seems to be ignoring the situation.

[huttonr] 10/11/2010 08:36

Just been looking at the Camelford inquest reports - do we have any exposure here? - there is nothing obvious in the last annual report under risks, etc

[ashbox] 21/10/2010 11:38

Anyone know what's put a rocket up this today?

[miata] 12/10/2010 13:27

HSBC upgrades Pennon to 'overweight' from 'neutral', target price raised from 620p to 670p.

[miata] 04/10/2010 20:14

You don't buy water company shares for action (except around 5 year OFWAT reviews).

[philo124] 04/10/2010 20:12

Not much action.

[miata] 07/9/2010 17:34

Water companies have been given a boost by Citigroup, which pointed to their defensive qualities, attractive dividend yields, the benefit of inflation to their profits and the possibility of mergers and acquisitions in the sector. So Severn Trent has added 32p to £13.65, United Utilities is up 6p to 593p and Pennon has put on 3.5p to 597p. Citi said:

We have updated our forecasts for latest guidance and Citi economists' RPI forecasts. We also increase our target prices to reflect forecast sustained high RPI, putting the companies at premiums to regulatory capital value which reflect their relative total returns to equity over the remainder of AMP5 [the five year framework to 2015]. We increase our Severn Trent target price to £14.75, which represents a 5% premium to 2011 RCV and their forecast highest return to equity investors. We increase our United Utilities target price to £6.58 and Pennon to £6.39, representing premiums to RCV of 4% and 3%, respectively.

[philo124] 21/8/2010 10:56

Thank You.
Certainly CS has suggested selling out of IPR into PNN for the yield.
I sold out of my trading account and will probably buy back for my SIPP,
hoping for 525p if FTSE comes back to 5000.
Regards

[optomistic] 21/8/2010 10:28

PHILO124, must give credit where credit is due, well judged.
However although I was mistaken in looking for a move to 650p I do beleive that with Pennon now yeilding 4% it is a good home for cash rather than the banks offering miniscule returns.
It appears that the fall was due to the Broker downgrading UU. and SVT and PNN getting some of the flack as well. Apart from that there is concern that VIRIDOR profits on brown energy produced due to the lower wholesale price of electricity. How much a reduction we will have to wait and see but energy production is obviously only a part of VIRIDOR profits, recycling being a major earner which by necessity is going to be a high growth area.
All IMO of course,
regards and good luck to all.
opto

[philo124] 21/8/2010 09:23

Good sale eh?

[philo124] 03/8/2010 09:06

Sold out 1500 for good profit. Can understand others holding but looks relatively expensive now IMO.

[ashbox] 02/8/2010 11:11

Looks like it wants to have a go at £6, first refusal though!