Severn Trent Share Discussion Threads

[careful] 11/9/2012 18:41

i was in here at 950 out at 1550, too early.
but it went to below 1000 at the time of the last regulatory review.
goldman had them as a 'conviction sell' at that time.

svt are due for review in about 2 years and he same fears will emerge.
will the regulator offer them the same return on assets as before?
i doubt it.

the trick with these regulated utilities is to jump in and out after making the right guess as to the regulators settlement.

[miata] 29/8/2012 16:43

I'm still out, would like to get back in but September is usually a bad month for the markets so still waiting.

[scottishfield] 29/8/2012 14:21

Steady progress. I'm in (over the last few days). Bit of diversification (for me).

[miata] 13/8/2012 09:53

3 Aug Severn Trent PLC SVT Morgan Stanley Equal weight 1,706.00 1,706.00 1,645.00 1,645.00 Reiterates

[northernlass] 06/7/2012 06:25

Mouth Watering 2,200p Target?

INFLATION-BUSTING DIVIDENDS COURTESY OF SEVERN TRENT

A recent deal in the water utility sector underlines the value on offer to shareholders and, with inflation-beating dividends still flowing, they remain the defensive share of choice for these turbulent times. Brokers at Liberum Capital estimate that if the 30 per cent premium paid for Veolia Water in a private deal last week was applied to the three remaining water stocks, it would imply prices of 900p for Pennon , 2,200p for Severn Trent and 920p for United Utilities - a significant premium to today's prices.

Private buyers' thirst for water assets show little sign of being quenched after Hong Kong-based businessman Li Ka-shing snapped up Northumbrian Water last year and now French utility company Veolia has sold its UK assets to Rift acquisitions, a consortium of infrastructure funds including Morgan Stanley Infrastructure and M&G. The headline price paid was £1.24bn, a 30 per cent premium to the regulatory capital value - the value of reservoirs and pumping stations - of £948m. The wider water utility sub-sector is currently only trading at an 11 per cent premium to regulatory capital value.

Buyers would need deep pockets to take out United Utilities, with a market capitalisation of £4.6bn, Severn Trent at £3.9bn, or Pennon at £2.8bn, but sovereign wealth funds could be in the frame, especially now that UK banks seem off the menu as investments. Even if a deal doesn't come along, investors get guaranteed dividend growth targets until 2015 of retail prices inflation (RPI), plus 2 per cent for United Utilities, plus 3 per cent for Severn Trent, and plus 4 per cent for Pennon. Dividend yields are already inflation-busting with United Utilities on 4.7 per cent, Severn Trent at 4.2 per cent (plus a 63p special dividend), and Pennon at 3.5 per cent. Pennon also looks set to join the FTSE 100 after shares in International Power were suspended following its takeover by French utility giant, GDF Suez..



IC VIEW:

Shares in the water sector are supported by strong fundamentals, they are tailor-made for the current economic backdrop of low borrowing costs and elevated inflation, and foreign buyers are attracted by solid assets and defensive revenues. That makes the shares cheap relative to recent deals. BUY.

Source:



P.S.

Here's a couple of links about SCLP, one of the hottest stocks at the moment:

[miata] 02/7/2012 09:05

Allowing for the 105p XD, it would seem 1700p would be a more realistic short-term upside target.

[tradermichael] 26/6/2012 09:02

Any thoughts on whether this cycling will continue? Looking at the RSI, it seems to be ready for a run back up towards 1800p (RSI 75)?

[miata] 11/6/2012 08:51

11 Jun Severn Trent PLC SVT Credit Suisse Neutral 1,786.00 1,550.00 1,550.00 Retains

[stavros28] 02/6/2012 15:58

Result from the software again.




Stavros

[sanks] 29/5/2012 10:36

The downgrades follow advise from Professor Shaggos Van Shagger.
They know access to level 4 is limited, hence that poodee poodaa drip towards £13.72 is on the cards.

I decided to take me nob off the table today, at 16.64..sanksalot for the coins, i promise to be back for a real shaggers poodee drip.

For the time being, i'm nobbin elsewhere.
Sankyou

[miata] 25/5/2012 08:29

25 May Severn Trent PLC SVT HSBC Neutral 0.00 1,740.00 1,770.00 Downgrades

[stavros28] 15/5/2012 00:00

Ready to break through a sort signal see chart.



Stavros

[elssworth] 14/5/2012 23:23

Hope the £13.72 poodee target helps
Sanksalot
======================================================

Share buybacks: the other way company managers rob you
May 14, 2012

I noted last week that, in the US, big companies have long been the only net buyers of equities. It is also worth pointing out that 25% of S&P 500 companies now do not pay a dividend. They prefer using their cash to buy their own shares.

In the early 1990s, some 25% of corporate cash flow was distributed as dividends. That number is now 17%. Today, share buybacks account for 25% of cash flow.

But why this new mania for buybacks? The general idea is that company managers figure out when their shares are cheap, and buy them in below their intrinsic value. That creates value for the remaining shareholders: they've effectively bought a cheap asset, and there are fewer of them to share in the proceeds of future growth.

There are tax advantages too: most countries tax capital gains less than dividend income – so it makes sense to encourage policies that produce the former.

All of this sounds entirely reasonable. And if the story ended there, it would be. But it doesn't.

[n3tleylucas] 12/5/2012 23:16

get on ell ess eee ffs ... we know all this




hic!!!

[sanks] 12/5/2012 23:09

My level 4 shorting alarm just went off. I'm looking to put me nob on the table cos according to my bird Sheila, she thinks we could see the technicals at £13.72 tested soon.

Let me know if this is helping
Sanks

[miata] 11/5/2012 09:21

Sinking ships around the Med leads money to seek calmer water.

[stavros28] 11/5/2012 09:06

On the move again.



Shark in the water ?

[miata] 10/5/2012 15:18

You will see from the spike recently that its a bit expensive just at the moment (defensives are in vogue due to the Euro crisis). If it falls below 1600 it is a buy.

[jas0701] 10/5/2012 12:20

Thanks Miata
I'm thinking of investing in this company as i heard SVT is a take over target and also pays dividend.
Jas

[miata] 10/5/2012 11:02

Own on or before 19-06-12.

[jas0701] 10/5/2012 10:12

Could any body tell me from what date, do you have to hold SVT shares from to be applicable for the Dividend?
Many Thanks
Jas

[stavros28] 25/4/2012 22:48

Sotware brought me to this thread I had a buy signal and pop off it went.

Whats in the water ?
Check chart link



Stavros

[brain smiley] 20/4/2012 15:00

could be takeover....

[miata] 20/4/2012 10:13

Looking to SELL soon.

Historically after such a sharp rise there is a pullback.