Sse Share Discussion Threads

[essentialinvestor] 14/9/2018 15:23

Was the level of dividend paid out for years detrimental
to the longer term interests of the business?.

Some of the income funds appeared to have dumped holdings over
the past few years.

[andycapp1] 14/9/2018 15:12

Generation co should trade at a decent rating given its regulated/RO type income so if it gets an infrastructure fund type rating - which it should - then it’s prbably worth north of £13. Then retail co could be worth £0 and it’s worth quite a bit more than today. So in my book and absent labour, it’s a no brainer at this level which is why I’ve loaded up!

[bobby12340] 14/9/2018 14:49

Alot depends on what MERGO(SSE Retail and Npower retail) will offer after the split.

We know the old SSE will offer 80p index linked for 3 years.

No one knows what MERGO will be valued at or its dividend.

[losos] 14/9/2018 13:21

careful - someone mentioned a few days ago that there is a feeling of 'get all the bad news out in one go now'. Then when the details of the merger with nPower and the creation of NewCo. are being finalised there should be no skeletons in the cupboard.

That's just specultion on my part, I sold half my holding a while ago and now have to decide if to continue holding. A divi cut looks to be on the cards but yield still good. Putting cash into an 'instant access' saving account is rubbish have given up looking for a decent return on cash.

[careful] 14/9/2018 12:31

bought a few more.
looks grim, but hoping this can be turned around.
Sometimes a shock like the recent results is a wake up call.
For a while the company may become motivated to run things better and apply financial discipline.

[skinny] 14/9/2018 11:55

HSBC Hold 1,104.25 1400.00 300.00 Downgrades

[bountyhunter] 13/9/2018 21:48

but that excludes the NewCo dividend does it not?

[justiceforthemany] 13/9/2018 21:46

npower's retail business in the UK has more often than not been loss making. Post-merger the dividend will be cut/re-based to 80p actually.


There will be one more dividend rise for the year to March 2019 to 97.5p per share and then the directors will trim the payout to 80p for the year after that, which they say “provides a sustainable basis for future dividend growth.”

[gateside] 13/9/2018 20:04

Just concentrating on hydro and wind in Scotland is poor management. SSE are also based in southern England, where they could have built up a portfolio of Solar Farms if they had any sense. These would do well in the sunnier summers when the wind underperforms.

[eeza] 13/9/2018 19:51

And probably another 42 before we get the next.

[bountyhunter] 13/9/2018 19:06

I was about to post the same thing! Oversold?
I know there is global warming but it's been 42 years since we had a heat wave in the same ballpark as this year.

[1squintyflinty] 13/9/2018 16:02

Its 8.47 yield and theyve promised not to drop the divi payments for the next 3 years

[justiceforthemany] 13/9/2018 15:38

SSE would have done well if they had waited a bit to buy back their shares!
1100p Vs 1500p is quite some difference.

[justiceforthemany] 13/9/2018 15:21

The much maligned Centrica in 6 months to 30/6/18 on the other hand has reduced liabilities by £1Bn, cut borrowings by £1.25Bn and increased net assets by £600M

[justiceforthemany] 13/9/2018 15:09

Been in and out of SSE over the years.
Net assets down by £1Bn at £5.2Bn to 31/3/2018
Borrowings up by £500M and cash down by £1.2Bn
Doesn't read well IMO.

[g2theary] 13/9/2018 14:35

I may pick some up for 1000

[g2theary] 13/9/2018 14:30

I will be amazed but I hope this fantasy figure is right... 14.5% yield at that!

[wipo1] 13/9/2018 14:21

Careful All the young generation spend their cash on tech, holidays, cinema ect. Their is no loyalty like the older generation, sse an old economy dinosaur I'm afraid, Sony apple dell amazon google all the future.

[careful] 13/9/2018 13:27

John Lewis results today, SSE yesterday.
Suddenly solid established companies have become profitless.

This is the new capitalism, near zero profit companies.
I suppose if a ten year Treasury Stock yield less than 2%,
we should adjust our income and profit targets to account for that.

So a PE of 20 and a yield of 2.5% should be the norm.

[bountyhunter] 13/9/2018 11:22

I'd hate to see you be pessimistic

[muffinhead] 12/9/2018 21:56

Target 700p

Dependant on on soft landing to a pretax profit margin of 2%
That is being optimistic

[bountyhunter] 12/9/2018 21:44

Yes couldn't have predicted the hottest summer on record although of course that was only part of the story. I do wonder though as others have done if the statement today was deliberately made to be more dire sounding than need be (although there's no getting around the decrease in profits) to ensure that the merger to form the new company doesn't get derailed by the authorities.

[minerve] 12/9/2018 21:18

Fair enough wad. I apologise if I offended. To be honest, selling in May was just luck because some of the reasons I gave have failed to materialise so far.

Good luck with your holding. :)