United Utilities Share Discussion Threads

[wad collector] 03/5/2013 09:28

With the advantage of the retrospectoscope , it was a damp squib.
Seems to be a 750 ceiling .

[zeppo] 18/4/2013 15:51

Smoke without fire or sudden conflagration?

Rumour can lead to T15 T20 deals which have to be closed off in the next ten days or so.

Long term holder.

If this hike is misleading then I will wait until the price subsides again before adding.

Next time it may be smoke with fire.

z

[wad collector] 15/4/2013 13:34

The other victims are ,of course, the customers.

[darias] 15/4/2013 13:23

A prudent investor in a blue chip utility should be seeking proper financial management not crowd pleasing policies.

The city relies on high interest rates to its bankster friends so that they continue to vote for the board so that the board can continue to rip off their investors.

If the board don't want to cut the dividend and, to a certain extent I can understand that, then go to the shareholders and seek a rights issue and explain that the only purpose is to reduce debt.

Intelligent investors will consider that any investment to reduce borrowing is good financial management and will generate rewards later.

[wad collector] 15/4/2013 12:47

So a bank can get 4.5% over base rate by lending to a blue chip utility?
As you point out , it makes sense to prioritise repaying debt when they are paying at that rate , but they won't want to offend the market by renaging on their progressive dividend policy.

[darias] 15/4/2013 11:38

Looking at the balance sheet (from ADVFN) the dividend yield should be cut so that debt can be reduced. The investment in assets is not performing as all the cash is taken out by shareholders.

Draw down debt and profit will increase so that NAV will increase. Seems to me simple economics.

According to the September statement financing costs were nearly 22% of revenue.

Also consider the following,

"Net debt including derivatives at 30 September 2012 was GBP5,323 million,
compared with GBP5,076 million at 31 March 2012. This expected increase reflects
expenditure on the regulatory capital expenditure programmes and payments of
dividends, interest and taxation, alongside the accelerated pension deficit
repair payment, partly offset by operating cash flows."

and

"The lower RPI indexation charge contributed to the group's average underlying interest rate of 5.0% being lower than the rate of 5.8% for the first six months of 2011/12."

So the banksters are getting 5% whilst we as shareholders get a paltry 4.3% and who takes the risk?

[fangorn2] 15/4/2013 11:09

Hmm I had it pencilled for a bit higher than a tenner. Seems however that the
current market cap of £4.5bn according to this is wrong - assuming 682m shares issued at £7.41 gives £5bn mkt cap.

So £10.26 or so.

[darias] 15/4/2013 11:06

It will only get interesting if it can break through £8 and hold.

[wad collector] 15/4/2013 10:51

Another month another rumour. £7 Billion eh?
That is about £10 a share. So I better hold just in case. And there is always the yield...

[simongn] 14/4/2013 12:22

From here:

and here:

United Utilities hires Goldman as defence adviser

The Sunday Times
United Utilities, which has been the subject of frequent takeover speculation in recent months, has appointed Goldman Sachs to advise on how to defend itself against a potential bid.

The giant water company, whose market value has jumped by 7% this year to £4.9bn, has mandated the Wall Street bank to work alongside Deutsche Bank, the utility's existing bank, and JP Morgan, its corporate broker.

The move comes amid ongoing rumours that a cash-rich consortium of foreign investors, including a Middle East sovereign wealth fund, could be plotting a £7bn takeover offer for the FTSE 100-listed company.

[portside1] 02/4/2013 09:30

gypsys just get their water from standpipes which they carry with them
they never pay its free and not illegal

[portside1] 02/4/2013 09:29

if i was on benefits and lived in a council house i would stop paying my water bill and buy food and heating did you no that water companys can not turn off
the water supply to a home it is illegal
so i am going to say this to benefit claimers stop paying your water bills
will put this on twitter tonight

[careful] 25/3/2013 09:41

the risk here is with the regulator up to the review.
he seems to suggest that the shareholders have had a soft ride at the expense of the consumer.
it puts me off.

the last time there was a regulatory review the shares dropped a lot.
if he considers the return on assets should be in line with indexed linked gilts (as in the past)then things could look very grim.

he will however have to give some incentive to infrastrucure investments.
it is no good young analysts telling you to buy for the dividend,
no one knows what that dividend will be.

[wad collector] 18/3/2013 21:04

Heading towards my buy territory again.About 670 will do me.

[enami] 08/3/2013 12:37

Threatening double top here. Now news or broker views to explain quite large drop over last 2 days.

Trading Update due 21 March.

Down to support/resistance level

[brain smiley] 15/2/2013 11:34

13 February 2013




Deal-thirsty overseas buyers like the look of the UK's water companies but new layers of regulation next year could lead to a deal drought.



Today water experts warned that looming regulation would put a dampener on deals and the high share prices currently propped up by bid chatter would fall.

JPMorgan's Edmund Reid and Chris Gallagher say: "Despite the high level of uncertainty, water valuations remain full, we believe helped by recent press comments regarding potential bids."

They did admit that with a "buoyant corporate credit market" they couldn't "rule out M&A" but think "the closer we get to Ofwat's 2014 price review the less likely a bid becomes".

Reid thinks that although the "demand for UK water assets from financial buyers" is evident in recent deals such as Sumitomo's purchase of Sutton & East Surrey. This demand will wane as the water regulator's 2014 price review floats into view, he claims.

Reid and Gallagher are so sure of the adverse effects of regulation - including the Water Bill due before Parliament this year - that they have slashed the rating of their "favoured UK water utility", Pennon.

They now rate Pennon neutral or hold - down from Buy - but have slightly increased their share price target to 695p. The share price of the water and waste group trickled down 8.5p to 670.5p today.

JP Morgan rates Severn Trent, currently down 21p to 1591p, as neutral with a share price target of 1520p.

Vague rumours that United Utilities is a bid target have been doing the rounds for months and have inflated its share price. But JP Morgan rates the stock neutral with a share price target of 720p, and the shares slipped 6p today to 724p.

[simongn] 06/2/2013 10:12

I find it quite reassuring that UU. is holding on to most of it's recent gains, if they were a result of invalid takeover rumours I would have expected the gains to drift away with time. Either the gains are not due to the rumours or the rumours have some truth behind them. I wonder which . . .

[mali12] 31/1/2013 09:45

LOOKS LIKE WE'VE SEEN THE TOP.

[redartbmud] 30/1/2013 09:03

Perhaps there is a leak. any Dutch boys around to stick a finger into the breach?

[wad collector] 30/1/2013 08:57

I note the resevoirs are 90% full. How much rain does it take to fill them??

[enami] 30/1/2013 08:36

IMS seems to be well accepted by the market.

Dividend pay day Friday.