" FTSE FOR FRIDAY (FTSE:UKX) It's been a while since we moaned about the AIM market. Thankfully, the AIM remains blithely ignoring the travesty which is the FTSE and, at 1041 points, is trading in fairly helpful territory which does not harm ..."
on news of the preferred options for ways in which Ofgem may or may not taper the formula setting the rate at which the network can recharge its investment costs to the retailers from 2021, or not.
A welcome sp improvement whatever the reason, just another 150p to get back to fair value. Can we be confident enough to say that we have seen the bottom at 740p ... probably not, it is all so political as you say, but I will be adding to my ISA ahead of the next dividend.
I was once a Conservative County Councillor. On one occasion I spoke out against something that the Conservative ruling group was pushing through because I thought (and still think) that it was profoundly undemocratic. As a result of this the fix was put in to ensure that I would not be selected to contest the seat at the next election.
For me it was a price worth paying but then I wasn't relying on it as an income to pay the mortgage.
Can't disagree with anything you say, Bill.
The standard of political leadership and integrity in this country is abysmal.That includes Tories, Labour and the LibDems(who?)
However, besides the rudderless Tory party giving strength to the likes of Corbyn and McDonnell, I really am disappointed that many moderate Labour MP's seem to have given up the ghost and one never hears a squeak of discontentment or disagreement from them in relation to 'the annointed one'. They appear to be a spinless , looking after number one bunch of zombies. Haven't any of them got the cojones to put their collective heads above the parapet? For the good of the country, if nothing else? Anyone showing a bit of honesty and courage now, could do well in any future Labour leadership contest as I am optimistic that the Marxist Madness won't last for ever.
"Shifting its primary listing to, say, New York could make some sense."
But would have zero effect - as the author has the good sense to concede. Having other, non-UK-regulated assets offers a small degree of comfort to UK utilities investors - particularly NG, given the relative scale of the same for them - but ultimately, the risk of state appropriation of core, monopoly regulated assets is simply not something that any of them can merely shift to the US, or anywhere else.
"That's all we need - the Times saying a Corbyn-led government would be good for us. Never mind SELL National Grid, SELL everything might be more appropriate."
You are not wrong, FRTEB. More and more people are jumping on the "dysfunctional utilities" bandwagon - including the charlatan Gove, I see - but when last did the lights go out? When last did we run out of water, out of gas (though we came fairly close to the latter the other day, it would seem)?
A Corbyn "government" (sic) - when did he or any of his cronies run anything, manage anything? - would be in hock to increasingly militant unions. The same group that gave us - among many debacles - the three-day week in the mid-1970s, no TV, lighting homes by candle. Many of us on here will remember that - and history has a habit of repeating itself, just when we think such things are safely consigned to history.
I am increasingly angry at the shocking shambles of a Tory party, with all their lies, dissembling and shameless self-interested posturing - it is they, and they alone, who have made Corbyn credible, and it is they that will bring him to power. If it comes to that - let's hope not, but at the same time, not something we can take for granted.
" Responsibility for ensuring that the lights stay on and that the gas keeps flowing during crises such as this weeks would transfer back to the government. Perhaps a Corbyn-shaped cloud could have a silver lining, after all. "
That's all we need - the Times saying a Corbyn-led government would be good for us. Never mind SELL National Grid, SELL everything might be more appropriate.
"..................... Along with other regulated utilities, it is firmly in the sights of Jeremy Corbyn, who has pledged that a Labour government would regain control of energy supply networks by bringing the systems back into public ownership. Markets have taken the threat seriously. Since May, when the Labour manifesto was published, the UK utility sector including National Grid has underperformed American utility stocks markedly; National Grid shares are down about 35 per cent.
Dominic Nash, an analyst at Macquarie, suggested this week that companies such as National Grid even had a duty to shareholders to consider putting their activities offshore to protect investors against potential expropriation.
Its not quite as mad as it sounds: National Grid is investing heavily in its American business, which it expects will overtake its UK division by the early 2020s. Shifting its primary listing to, say, New York could make some sense.
Yet expropriation of its core UK network businesses still seems improbable since, even on the present depressed valuation, it would cost billions of pounds that the government is unlikely to have. The more likely option lies in further political and regulatory hits on the profits from National Grids core UK network businesses. Going offshore would not help that.
Ofgem, the energy regulator, has warned that it is about to get tougher. It is due to unveil its proposed framework on Wednesday for the next price control, when it sets the revenues the networks can earn. It is likely to slash the cost of equity allowed for companies such as National Grid and could moot a shorter price control than the existing eight-year system, increasing perceived risk.
The regulator has already made a series of decisions that have spooked investors for example, proposing to slash the revenues that National Grid can get from the transmission link to the new Hinkley Point C power station. There is plenty to worry investors short of full expropriation.
Any Labour government surely would want to do something to honour its manifesto pledge. One easy option? To take back control of the system operator role the electricity half is already a separate ring-fenced business.
Responsibility for ensuring that the lights stay on and that the gas keeps flowing during crises such as this weeks would transfer back to the government. Perhaps a Corbyn-shaped cloud could have a silver lining, after all."
There are some great posts on here that answer all or most of your questions including the disappearance of LK Hyman. If you filter on Votes > 3 you will probably find most of what you are seeking in less than an hour.
My user name is from the good old days of when the Glazers were rumoured to be buying United and the share price was rewarding! It was a tongue in cheek name in which I could forsee/hoped Mr G naming his new team, USA USA stylee .
When will the collapse end?
Why is this happening?
Did anybody pile out when 1050p?
I recall a poster on here who seemed quite savvy who used to sign off 'LK on the flybridge', tell me what's happening please!? I haven't got a spare day to read all this stuff!
I have just registered and logged on to Barcplus and my first thoughts are disappointing. Discussions seem to be only a fraction of what appears currently on ii boards. There seem to be many categories that have had no postings at all on them and many where the most recent post is sometime last year.
I am with those who would like to see the discussions linked to individual shares rather as ii do at the moment.
I also like to be able to see the current share price whilst I am reading the discussion / thread (as in the case of soi for example)
Whatever the perceived faults of ii discussion boards and the attempts by ii to "update" their pages the thing that ii need to do before this new discussion site is let loose on us poor investors is to ensure that full beta testing is done so that there are few if any complaints once it goes live!
Just my thoughts
In response, it annoys the heck out of me that any company should offer a scrip dividend in an age where it actually does not benefit the investor.
Some quick points:
1) Scrips are chargeable against income tax so no benefit to anyone here
2) Investors do save on stamp duty and any platform fees imposed vs DRIP which incurs stamp
3) Price of SCRIP is usually known pre election vs DRIP which is post payment
4) A company like Natl Grid has (relatively) high retail investor ownership so I guess they offer a SCRIP in the hope that this utility can issues shares (equivalent to printing money under QE!) instead of handing out cash. That allows it to borrow more cash, or at least keep borrowing lower than otherwise would have done - also think BP here which offered a SCRIP to make investors believe the fallacy that it had re-started paying a dividend.
Further, I hate buybacks. Yep, I've studied buybacks vs divs a lot and, frankly, in an ISA/SIPP driven UK environment I can't help but think investors would be a lot better off having cash distributed to re-invest in companies with ideas than companies buying back stock which has very, very little impact on share price.
yes- there is a lot of work going on into developing fuel cell technology, but they either need hydrogen or natural gas to work, and neither is a particularly easy fuel to recharge safely and quickly, added to fact these fuel cells are expensive to produce and have a limited life ( as do batteries of course).
There is also a huge amount of work going into "solid state" battery technology. It will be a very interesting decade for sure. Batteries seem to have the lead right now, but you never know - break throughs happen all the time albeit of decreasing technological magnitude compared to 100 years ago..
Lupo, The same two problems exist. From where will they get this power (and I mean the actual power), and when you charge these lithium batteries at that power they only have a very few charge/discharge cycles in them.
Quite so, Sparticus, and no doubt they'll have that in mind; perhaps a drive through before hooking up?
I'm not really sure why they're considering doing this, assuming that the article is correct. This is slightly outside of their stated remit of owning and operating, or just operating, transmission networks.
LONDON (Alliance News) - National Grid is considering plans for the installation of a network of super-fast electric vehicle charging points along UK's motorways, fed by its existing electricity transmission network, the Financial Times reported Monday.
The FTSE 100-listed company, which operates the country's high-voltage power grid, has mapped the UK's motorways and identified 50 key sites, which would put 90% of drivers within 50 miles of a charger, the newspaper reported.
The chargers would provide up to 350 kilowatts of power, allowing a car to be charged in five to 12 minutes, compared to the normal 20 to 40 minutes. It takes roughly seven minutes on average to fuel a petrol car.
"Not sure what you're seeing on your chart but I get a target of ~660 on a rising support line from 1996 and 2010 + several intersections from other lines"
That's the one, rechecking (and at that scale I have to squint) it looks somewhere between 660 and 690 but in any case the take-out for me is that NG sentiment is near historic low territory which in the past has been a good time to buy, if JC and co stop using the N word that is.
" 1. We are getting close to a rising support line around 700p "
Not sure what you're seeing on your chart but I get a target of ~660 on a rising support line from 1996 and 2010 + several intersections from other lines. At that level people will be weighing the numerous risks of increased regulation, low growth, high debt, nationalisation, bond proxy/rising interest rates against the dividend yield of 6.76%. So there should be a period of stabilisation for the sp at that level, although whether it marks the ultimate bottom is another matter with recent mention of 490 but I can only think that would be a likely Corbyn win scenario in which case NG won't be the only thing to worry about.
"even jeremy eventually will see it is not possible to buy up all power system in uk..."
Interesting comments on which parts of the electricity grid JC might be planning to nationalise. The conclusion that local grids are likely to be targeted not Nat Grid is significant, any clarification to that effect by Labour should turn the SP pretty sharply.
1. We are getting close to a rising support line around 700p
2. The current valuation can be justified with pretty low growth. I estimate 3% growth in EPS and dividend justifies current current SP on dividend payments alone which would be sustainable. The US business with Infrastructure investment being prioritised and additional investment required in UK should allow growth above that.
3. Nationalisation aside, the other risks for NG are relatively low. Fx for a growing US business is one, but probably skewed to the upside if Brexit shocks hit sterling. If the markets and/or economy take a big hit, NG at current SP feels a safer place to be than most.
I can imagine Jeremy echoing Trump's comments on repealing Obamacare, "who knew nationalising power distribution could be so complicated".
we have to accept that if NG is treated like a bond, if there is a chance you can buy 10 yr treasuries or gilts at 3-4% they are quite some good competitors to income from NG... so some repricing of NG is on the cards...
NG is to be held for perpetual income not for capital appreciation, in my view.
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