Pennon Share Discussion Threads

[gateside] 20/2/2021 10:37

Ok... I thought it was £100000 but wrote a typo if £10000 - which happened ironically to be correct. Agree £10000 purchase for a Chairwoman is peanuts. I really think the management are totally out of their depth here.

[gripfit] 20/2/2021 10:33

Ie £8 a share

[gripfit] 20/2/2021 10:32

Potentially another 10 % off this company because of that ,, imho

[pierre oreilly] 20/2/2021 09:46

It's madness. The chairman/woman buying 1100 shares just sends out massive incompetence signals to me. Wtf is that supposed to signal? If that represents the faith a director earning a mill plus i should imagine has in the company she is running, she can't really think much of herself.Btw 10 mins ago, reading these posts I thought she'd bought 100k shares, and was about to post how positive that was. Good job I checked for myself.What the f does she expect a 1100 director share buy to signal? If that's all she could afford ( which is in the realms of fiction), then she shouldn't have bought any imv.

[optomistic] 20/2/2021 09:36

10K...one weeks salary?

[gripfit] 20/2/2021 08:53

£100000 and that means something ,,

[gripfit] 20/2/2021 08:52

£10000 hardly anything ... bit of a token effort really

[deanowls] 20/2/2021 06:29

Also tells you there’s nothing happening as they wouldn’t be able to buy.

[gateside] 19/2/2021 23:36

Chairwoman bought £10000 of shares today - hopefully a positive sign

[dartboard1] 19/2/2021 17:36

Thanks EI... confident in the business, but not the interest rate environment that seems to be pricing utility stocks right now ... NG down by same amount todayThat being said, buy when out of fashion...

[whackford] 19/2/2021 07:54

Would it appeal to the PNN Board to deliberately wait for the demotion, thus putting them in the 250, before announcing the cash return which would probably not change their FTSE 250 listing?

I cannot think of a good reason offhand but someone else may.

[ohisay] 19/2/2021 02:32

Currently, water company Pennon Group PLC (LON:PNN) is in greatest danger of being demoted from the prestigious index, with a market cap of below £3.9bn, followed by Wm Morrison Supermarkets PLC (LON:MRW) at a bit over £4.1bn and British Land PLC (LON:BLND) at just under £4.4bn.

All three are all outside the list of the largest 100 eligible stocks on the main market of the LSE.The next quarterly rejig of the FTSE indices is due to be announced on Wednesday 3 March

Current market cap £3.8bn ..Would it be too much to ask for some guidance before then !

[gateside] 19/2/2021 00:45

52 week low

[dartboard1] 18/2/2021 13:41

Pierre, not sure you'll be able to game the index downgrade enough to make it worthwhile... you'll probably find that it's priced in by the time they're downgraded... and also that a 2 or 3 % move is not enough to make much $$ on... I'd place more thought on the underlying business, the valuation at the time and ... for utility stocks, movements in yield curves (all utilities are down now because of steeper curve)

[pierre oreilly] 17/2/2021 18:18

Gate - that makes the directors' silence even more annoying for shareholders. They are just sitting back and letting shareholder value erode if they do nowt and don't even attempt to stop the demotion.

I think that stops me buying back yet. I hope they do something, but it doesn't really look promising. In a way, it may make a cash return more likely if they look like they are getting booted out anyhow.

From a selfish pov, it would probably suit me if they get demoted, price drops, I buy, and then they do a cash back. But i'd feel sorry for holders if that happens. I don't like to post negatively, but it is pretty hard to be positive here - the directors really seem to be remiss on several fronts. The divi mis very safe though - and that's something to be thankful for.

[essentialinvestor] 17/2/2021 18:06

£9.30 plus will do me.

[gateside] 17/2/2021 17:56

Just checked the Market Cap of PNN - with the lacklustre performance of late, especially when compared to many others in the Market.

PNN have drifted down to 115th and unless they outperform the Market, they are due to be demoted to the FTSE250 at the next review, regardless of whether they hang onto their precious cash pile or not.

Selling Viridor without a firm plan of what to do with the proceeds is beginning to look like an awful investment decision.

Viridor was their growth story which set PNN apart from SVT & UU.

[essentialinvestor] 17/2/2021 14:35

Hi Jack, thanks. Very small holding and don't particularly see a buy case.

[cousin jack] 17/2/2021 14:22

EI; We seem to have reversed approaches ! In line with post 1138 I sold on 5th Feb at a small loss. I’m increasingly concerned that the lack of news may be followed by the announcement of a deal which could be negative for the share price and don’t consider the moderate dividend is sufficient to take that risk when there are safer options offering similar or better yield such as ULVR and NG, both of which I have added to. I’ve also considered adding to GSK but am holding off to see the post dividend reaction - I keep thinking it’s reached a bargain price but each time I think that it goes down.

I also bought Computacenter, Dunelm and Circassian yesterday for my trading portfolio.

Good luck with your holding.

[essentialinvestor] 17/2/2021 10:15

Bought a very small amount under £9.10.

Market finds it very difficult to value with uncertainty over
cash return/acquisition. The 'low risk' option is the return the vast majority
of the cash.

However and this is the risk... there will be a lot of highly paid advisers
whispering sweet nothings about potential acquisitions. Nice fee earner for the
corporate lawyers, auditors conducting due diligence etc.

[whackford] 17/2/2021 08:08

Yes this hoarding of cash is a big concern. The company should say something if only to declare they are still undecided.

[tombag] 17/2/2021 02:11

This all sounds like the GSK BB.

[gateside] 16/2/2021 22:36

This has been very badly managed. Agree that it looks like they have no idea what to do with the cash.
Either return it to shareholders or reinvest it in a new venture.
I should have sold too. Hindsight and all that!