Sse Share Discussion Threads

[wad collector] 07/2/2017 13:33

Thanks for that Pierre , I just looked up more detail and I see that the auction prices for both this and the December T4 (2021) auction were lower than other recent auctions and on both occasions SSE did not achieve their aimed sales.
Not sure if this means that they could subsequently earn more for that capacity if the price goes up in the meantime.

I guess Ofgem's latest announcement about meter capping is probably not good news here today not that the share price seems affected .

[pierre oreilly] 07/2/2017 12:07

Wad, Capacity auctions are new to me, but afaiu, it's the government (well, you and me) paying just to ensure there's enough available capacity into next year. So if i have a powerstation of 1GW, i can say ok, i'll agree to generate when you tell me throughout next year for £8m. If you don't pay me £8m, then i may or may not generate if you need me to. If the government want 50GW of capacity available to meet the peak next year, then they'll offer the cash to cheapest 50GW bid. It's a way of getting more dispatchable (i.e generation they can rely upon) generation on the grid. As you know, the grid has almost reached saturation of unreliable or intermittent generation wth all the over generous subsidies paid for wind and solar.

I'm sure there's more to it than that, but i think that's probably how it all works. I think there are some posters who still work on all this stuff, and if we're lucky they may come to explain in more detail.

Anyhow, i bought more sse earlier today, i think the divis safe and the capacity payments they did win will be a bit of extra profit for them.

[wad collector] 06/2/2017 11:32

Seems like mixed news , the latter two stations look a bit of a worry , though I am not sure how these auctions work.

[alphorn] 03/2/2017 14:50

Dipped a toe in today via options.

[bountyhunter] 31/1/2017 09:40

dividend yield now > 6% and increasing at least in line with RPI (better than pensions which generally now link to CPI) over the next three years to 2018/19 can't be bad

[philo124] 31/1/2017 08:54

Topped up 120% SIPP.

[bountyhunter] 31/1/2017 08:39

Encouraging statement also re dividend (header updated)...

Financial outlook
SSE believes that its strategic framework and opportunities for growth mean it can deliver a full-year dividend increase that at least keeps pace with RPI inflation in 2016/17 and in the subsequent years. It remains on target to deliver adjusted earnings per share* for 2016/17 of at least 120 pence.

As stated in its Interim Results statement on 9 November 2016, over the three years to 2018/19 SSE expects its dividend cover to range from around 1.2 times to around 1.4 times, based on dividend increases that at least keep pace with RPI inflation.

SSE will publish its preliminary results for the financial year ending 31 March 2017 on 17 May 2017, and in advance of that will publish its Notification of Close Period on 30 March 2017.

[garycook] 31/1/2017 07:51

Ditto.Great core holding.

[philo124] 31/1/2017 07:35

Yes, agreed.

[gateside] 31/1/2017 07:13

Solid trading update issued this morning.

[alphorn] 25/1/2017 21:53

Thx for those comments Wad. I have only held UU or written put options against UU for income as the share price swings down. As an example, writing a June UU 900p put option would give you around 40p today which is a pretty good annualised return (approx 10%) - no stamp duty and depending upon your status, no tax.
The risk profile, if backed by cash, is not that different to buying the shares outright. The main downside is that I would not benefit from the premium if UU was taken over.
Will follow SSE and may do the same.
Thank you again.

[philo124] 25/1/2017 21:13

Thanks Doc, I'll keep taking the tablets.
Thought you would have traded out of UU recently.

[wad collector] 25/1/2017 21:04

Flattered to be asked ; that sounds like an economics essay question .Compare and contrast.
I have always liked the electricity supply sector because no govt can afford to see power cuts , so must be supportive to the generators ( I realise that SSE is not just a generator ). The domestic sales business is a worry to me as there is considerable political capital in squeezing it .The high yield historically has been well covered depending on how you read last yr's results.
The water market is much less vulnerable to competition (There is no national grid for water and cannot jack up the voltage to allow long distance transmission) so any supply competition is rather artificial . The wholesale water price is therefore a bit arbitrary and not really a market. But we all need it so it is safe as houses in my view.
I think there is more potential upside to SSE than UU if you are looking short to medium term. That reminds me that I went through a phase of pair trading these two , around the 2.1 to 1 mark in price and now it is about 1.6 which on this simplistic view would also suggest sse is undervalued .
But bear in mind I am a doctor not an analyst!

[alphorn] 24/1/2017 14:26

wad - which do you prefer SSE or UU at this time? Why? If you have a moment.

[garycook] 24/1/2017 14:22

Happy to hold to with NG.

[wad collector] 24/1/2017 14:07

Thanks. Good BB ; no nutters/rampers. Except me?
Looks like £16 is a long way off again. Happy to hold.

[bountyhunter] 19/1/2017 09:21

good point wad collector - I've updated the header

[wad collector] 19/1/2017 08:47

Xd 27.4p today

[wad collector] 23/12/2016 08:49

An impressive looking end to the yr here; £16 looks a likely destination soon , barring wider market chaos. I love it when the market does this ; swing a share price around by 5-10% with very little hard reason.

[skinny] 13/12/2016 13:54

12 Dec Macquarie Outperform 1,506.50 1,700.00 1,700.00 Reiterates

12 Dec Barclays Capital Overweight 1,506.50 1,765.00 1,765.00 Reiterates

[wllmherk] 22/11/2016 10:46

I think you could have a long wait wipo, still, despite being my largest holding I would love to see sub 1400p so I can buy more :)

wllm

[wipo1] 18/11/2016 08:52

I'm looking to buy in around £13.50 again

[wllmherk] 18/11/2016 08:27

Hopefully we will never know what a Corbyn Government will look like, now that really is scary.


wllm

[wad collector] 18/11/2016 00:07

Corbyn? Didn't he used to be the Labour leader?