The European Investment Share Discussion Threads

[praipus] 08/6/2006 12:10

Aparently when the French first started buying water companies they used to wait for Ofwat to have a go let the share price drop then buy 29% in the market easy if you are/can be a long term.

[krishall] 08/6/2006 11:56

Well Severn Trent certainly is an example of the monopolistic status of the water companies. However, despite recent Ofwat action I think Severn Trent might still get a 'surprise ' or two from Ofwat. Unfortunately they deserve it...

[praipus] 08/6/2006 11:49

Friday ....thanks ...lol

Krishall regret to say I do not know and can only guess at the influencing factors:

Utilities have always been seen as a bit boring so tend to get mistakenly undervalued IMHO.

They are more politicaly sensitive, water being an emotive subject.

But these are to be balanced with the fact that utilities have monopolistic status, asset rich business's and are usually able to pay a gently increasing dividend.

Lastly IMHO the economic cycle points to utilities being in favour so their recent fall is baffling...the premium on the recent BWG takeover was the highest paid so far!

[krishall] 08/6/2006 10:53

P... sorry in advance ... couldn't resist this answer .... the answer is Friday !!

Seriously though .... what's your personal opinion on why he discount is >20%?

Rgs, KH

[praipus] 08/6/2006 09:51

Undiluted NAV up £2.27 and discount 21% according to splitsonline though wonder what tomorrows will be.

[praipus] 07/6/2006 10:15

Undiluted NAV £2.2456 and discount 20% according to splitsonline.

[praipus] 06/6/2006 10:04

Interesting question.

Have seen other trusts combat excessive discount to NAV with cash offers etc...for example ECWC is offering a 50% cash tender offer in July next year to Capital Share holders.

Does this answer your question ?

[pyman] 06/6/2006 09:54

agreed- NAV looking good. But when was the last time you saw a trust sell off and dish out to holders because the NAV discount was big. ?

[praipus] 06/6/2006 09:48

say NAV now £2.24, BAA takeover looks nearly settled so bit surprised the SP's moving south. Upside down head and shoulders forming to imply futher share price upside likely...IMHO.

[praipus] 02/6/2006 14:19

Next NAV statement could be good with BAA takeover battle included IMHO.

[praipus] 02/6/2006 14:04

18% undiluted discount to NAV +3% dividend + significant BAA holding good news strong buy IMHO.





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