Pennon Share Discussion Threads

[ohisay] 21/9/2015 15:50

RBC today..

European plastic recycling to 'increase significantly' over next decade
According to a new study by Cologne-based consultancy ecoprog, up to 300 new sorting and recycling plants for plastic waste will be commissioned in Europe by 2025. These plants with capacity to process 5.2m tonnes of plastic waste will increase Europe’s total capacity by 25% from today’s 1,200 strong plants today. According to ecoprog, within the waste management sector, recycling will thus be the most important growth markets in the next years. (Business Green)

So what? The main driver is expected to be the EU Waste Framework Directive, which introduced the “polluter pays principle” and requires Member States to reuse or recycling at least 50% of certain household wastes by 2020. However, almost no EU member state has yet reached this goal and a number, including the UK, are thought to be at risk of missing the target.
We believe the EU Circular Economy Package could also add further upward pressure for the bloc to improve recycling targets, thereby pushing demand for environmental/waste services higher. This is most certainly to be promising for all four of our environmental utilities, namely SUEZ, Pennon, Veolia and Shanks

[eeza] 06/9/2015 09:32

Tipped in Daily Mail.

[its the oxman] 27/8/2015 17:54

Time to buy under 800p. Looking well oversold on the market turmoil. Tuck away and hold for long term and a bid at some point. We all need clean water.

[zeppo] 24/8/2015 22:34

I am adding PNN if I can. Have also UU. already.

Viridor makes PNN less vulnerable to OFWAT in the future.

z

[cutlosses] 24/8/2015 19:51

Thanks for that Zeppo

I also noticed UU doing the same.

Sure it's more the market than the company - as people still need to drink water ..

I might buy one or the other for the Dividend and be paid to wait for a recovery.

C-L

[zeppo] 24/8/2015 19:18

cutlosses

PNN is already ex-dividend this month.

SVT, UU., NG. and many others down.

Hopefully this is the market not the company.

Obvious nervousness out there.




z

[cutlosses] 24/8/2015 18:25

Does anyone know what lower demand in China has got to do with this share?

Or is the fall today for any other reason?

[whackford] 22/8/2015 07:33

Ohisay - thanks for link to report on Pennon. Looks like a good read in these troubled times.

[ohisay] 22/8/2015 03:48

Our view: Our positive view on Pennon remains intact. We dedicate this
entire report on looking at Viridor, recognising that this is the single largest
issue surrounding buy/sell/hold recommendations on PNN today. We also
look at five valuation scenarios of PNN, and walk away concluding that
investors buying-in today will get a free optionality on PNN's growth and
M&A potential. Outperform, 900p price target.

[losos] 13/8/2015 13:02

Maybe APADS image was deemed unsuitable for sensitive ADVFN members lol!!!

[ohisay] 13/8/2015 12:47

Want some help for your image APAD?

[essentialinvestor] 15/7/2015 09:28

Energy from waste is the real gem here, big paybacks starting in the H2 this year.

[essentialinvestor] 14/7/2015 12:32

Well while you wait there is the Final dividend at 21.82p a share ))
paid 2 October.

[ohisay] 22/6/2015 11:14

Some RCV no's etc from Dec 2014 ,PNN cf others from RBC.



I still think 1000p + is a reasonable M/A target.

[huttonr] 06/6/2015 18:07

arja & optomistic

Like you, I am a little concerned on the dividend cover but do remember the basic water business is very stable with a good record on profits. There is the question of businesses being able to transfer supply to other companies - starts in 2017 if my memory is right(?) but most of Pennon water supply is domestic.

However, the main change in my view is Viridor - the power stations will make the difference and return that part of the business to a good profit level - 5 stations have become operational this last year (but only for a few months) so next year should see a good contribution plus the others still under construction.

So, I'm planning to hold on for the present but I'll watch the results as they come in.

[optomistic] 06/6/2015 12:20

arja they have a stated progressive dividend policy of RPI+4%, which of course looks very good but how often have we seen these dividend policy's reneged on in the past.
Centrica and RSA are just two that spring to mind and one from the past of course was Lloyds...that cost me a lot of income and has taken me 8 years to
get my head above water there! (Hoping to make my income losses back there in the medium term.)
Pennon I have had interest in but like you I am concerned about the dividend cover and I will wait to see developments in that area before I re-enter Pennon.

[arja] 06/6/2015 11:05

dividend barely covered by earnings ! Is that not a cause for concern ??

[ohisay] 16/4/2015 13:14

Weak dollar tells you everything.

[optomistic] 16/4/2015 08:54

ohisay

"Doesn't look especially cheap acquisition"

I would say that is an understatement...very poor deal IMO!


...but the market doesn't seem to mind it very much!