United Utilities Share Discussion Threads

[darias] 25/2/2014 15:29

Wad collector

What a truly inappropriate nick.

A yield of 4.3% is not that impressive with inflation at less than 2%.

Trading at near-all time high - they are not even at a year high. Let alone all time high. This share was trading at nearly £10 in 1997.

Wad collector please rename to "Im happy with peanuts".

[wad collector] 25/2/2014 14:29

I just unloaded a lump at 787p ; I am sceptical about bids and don't see the yield that impressive now at 4.3% . I am still holding a lot and think that I will get the chance to buy back soon. Selling at a near-all time high is seldom a bad decision.

[maurillac] 25/2/2014 14:08

cheers folks .. holding on for now i think
m

[alphorn] 25/2/2014 10:42

Money chasing yield IMO plus some Vod money. (Remain long UU).

[fangorn2] 25/2/2014 10:35

@Maurillac,

There's been a mulled £11 odd bid in the offing for a while - presumably from a similar consortium that was looking to take out SVT.

[pierre oreilly] 25/2/2014 10:32

There's a recent 3% rise due to institutional re-weighting due to vod, and I expect some more of the rise today is on the expectation of some of the vod cash going into high yielder, but it seems to be going much higher than those two factors would indicate.

[maurillac] 25/2/2014 10:23

well the way its going up i think there may be a bid in the offing. anyone else thinking like this ?
m

[fangorn2] 20/2/2014 17:59

Possibly Wad. Was surprised at its strength.

Wonder if we'll ever see this rumoured bid given the SVT one fell through..

[wad collector] 20/2/2014 17:34

Stonking rise this week . Verizon cash chasing it?

[wad collector] 11/2/2014 11:41

"From Motley fool last month

Dividend prospects dive as regulators bite

The incendiary issue of rising household bills is not a new development, but Labour's sustained attack on electricity firms that began last autumn has splashed the issue all over the front pages again. But ironically, it is the country's water providers that appear to be bearing the brunt of attacks on utilities' earnings potential.

Indeed, regulator Ofwat is showing plenty of teeth in taking on the industry, and just this week demanded that companies reduce their weighted average cost of capital (WACC) from 2015-2010 to no more than 3.85%. This is down from an average of 4.3% suggested across the industry, and companies now have until March to make amendments to their proposals.

City brokers expect the possibility of hugely diminished returns to result in worsening earnings prospects for United Utilities - expansion is predicted to slow from 11% in 2014 to 3% next year, before earnings slip 9% in 2016.

And analysts expect this to be reflected in the dividend moving forwards. The water play is expected to shell out a total 36p per share payout this year, up 4.9% from 2013 levels, before initiating a further 5% hike in 2015 to 37.8p. However, earnings pressure in 2016 is anticipated to result in a 3.7% fall in the dividend to 36.4p.

This would not be the first time that the company has cut the dividend in recent years, however, a major contributor behind the company boasting a miserly compound annual growth rate of 1.2% in the five years from 2009. Indeed, the firm to cut the 2011 dividend 12.5% to 30p as earnings fell by almost a third.

Although United Utilities' dividend policy cannot be described as the most progressive, anticipated payments through to 2016 still outstrip those of the wider market. Current payout projections for each of the next three years the firm provide yields of 5.1%, 5.4% and 5.2%, smashing a forward average of 4.6% for the entire gas, water and multiutilities sector. This also comfortably surpasses a prospective reading of 3.1% for the complete FTSE 100.

United Utilities is not alone in seeing its dividend outlook deteriorate heavily for the coming years. Although the company is expected to continue shelling out above-average dividends over the next few years, the prospect of escalating dividend constraints - as regulators become bolder and massive capital expenditure crimps profits - could make United Utilities a risky income play for many investors."


However, risky or not, it seems to be impressing investors today.

[maurillac] 10/2/2014 21:20

looks very strong doesn`t it.
i suppose id better sell now in case some foreigner takes us over ;)
gla
m

[philo124] 10/2/2014 19:41

Good move up.

[fangorn2] 10/2/2014 17:54

There's oft been mooted a bid of £11, presumably from similar parties that bid £21 odd for SVT. When it will materialise is anyone's guess

[wad collector] 10/2/2014 17:41

Closing high takes the share price to an 8 month high at 738 ; haven't see it this high since the (false) bid rumours last year. Maybe it is the oversupply of the product falling on us!

[wad collector] 04/2/2014 13:21

Ask the Tibetans.

[fangorn2] 04/2/2014 10:30

"Maurillac... I guess you have no loyalty to the country then, if say a Chinese Sovereign Wealth Fund, or a Middle-eastern one decides to make a bid for it..."

This country is doomed Wstirrup. Successive governments.that have cared little for the people of the UK, have destroyed its social fabric, its financial well being and its independence of thought.

Why have any loyalty when the political classes have no loyalty to the British people?

"Personally, I think the gov't should have held onto a golden share stopping foreign ownership, or limiting foreign ownership to perhaps 25% max."

Don't disagree. I'd go further and say governments should put the British people before all those bent on taking advantage of our generosity - from the welfare spongers, to the health tourists, to the European bureaucrats that dictate many of our laws that we live under. Additionally I'd suggest that politicians thank their lucky stars many of them aren't in prison for their blatant fraudulent expenses claims and that they're still paid so generously especially when taken into account the fact that many of them have no experience of work in the real world.

I'll be emigrating as this country is no longer the one I grew up in or have any strong feelings for. Frankly a dose of the Chinese in charge might be good for all of us.

[maurillac] 04/2/2014 08:52

lol ! a bit strong matey ! whether i own shares in uu. or not will have no impact on whether the company is taken over. of course i have "loyalty to my country" and would prefer that the water companies had not been put into the market, however that was not my decision - all i am trying to do is make some money from the markets rather than a pittance from high street accounts .. sorry about that ;)
m

[wstirrup] 03/2/2014 20:10

Maurillac... I guess you have no loyalty to the country then, if say a Chinese Sovereign Wealth Fund, or a Middle-eastern one decides to make a bid for it...

That was always my issue with large scale privatisations of formerly public sector basics like water...

Personally, I think the gov't should have held onto a golden share stopping foreign ownership, or limiting foreign ownership to perhaps 25% max.

Robert Mugabe doesn't like giving his Gold, Nickel, Diamonds or Platinum away to "Johnny Foreigner" - and many of the Middle-eastern nations kicked the Brits, French, Yanks and I-Ties out during the 70s for political reasons.

And South-Africa too seems to be heading down that route (now that Mandela is out of the picture), and Indonesia just slapped a ban on exporting raw ore, so it has to be refined locally, or not at all. (providing a buying opportunity temporarily for nickel miners/smelters/refiners btw)

"Sauce for the goose, sauce for the gander?"

W.

[wad collector] 30/1/2014 13:11

As you say ; and they are probably looking in the right direction .

[m.t.glass] 30/1/2014 09:16

Today's statement seems to be addressed to the regulator rather than the investor.

[wad collector] 29/1/2014 19:36

No , he meant that he is considering putting in a bid himself for £9.25.

[zeppo] 29/1/2014 15:45

inv 29 Jan'14 - 07:55 - 37 of 41

Bid coming shortly at around £9.25

Perhaps you meant bid coming at around 9.25 am tomorrow morning.


z

[pierre oreilly] 29/1/2014 15:25

lol lord!

let's hope for another bid approach tomorrow, and they stick at it for more than 10 minutes.

[lord gnome] 29/1/2014 15:08

Bid off already?

[meanwhile] 29/1/2014 08:24

Calm yourselves down.