It seems to be a reaction to the Corbyn factor and the anticipated effect of PR19. Unfortunately these companies have a culture of high pay and low expectations, particularly in middle management and above. The real measure of efficiency for these companies is the cost to serve per customer which should include an amount for the non-collection of billed amounts. Maybe Ofwat will publish this figure in due course.
"Severn Trent (LSE:SVT)We've been looking through shares not normally covered in our daily blurb in the hope of discovering some candidates for a "ISA 2018 Brigade". Some surprising potentials make themselves known, though LSE:SVT:Severn Trent ..."
" SEVERN TRENT (LSE:SVT) We've been looking through shares not normally covered in our daily blurb in the hope of discovering some candidates for a "ISA 2018 Brigade". Some surprising potentials make themselves known, though SVT isn't one of ..."
"As the first half of 2017 nears a close, we're talking about another grim period for the @GB:UKX:FTSE 100 and other major markets, and not for the first time in recent weeks.A well-established inverse relationship between sterling and the ..."
Valuations look pretty full across the board in absolute terms, suggesting limited scope for further SP upside for the moment... though the stocks will doubtless do well enough in relative terms on any market setback(s).
In relative terms, not much in it of course, but leaving aside SSE as a somewhat different animal (with a much higher proportion of its business in competitive - and more politically sensitive - markets), I would say NG screens as the most "attractive" at the moment, with UU the least compelling.
SVT and PNN offer faster dividend growth currently, but reflected in lower yields (particularly SVT), while NG offers somewhat better dividend cover comfort. And NG is trading on a decent discount to the (eye-watering) multiples of the water stocks on both earnings and EBITDA.
On balance sheet metrics, it's all relative of course, with sky-high leverage typical to the group... but NG is in a notably stronger position than the water comparators (particularly UU and SVT, up at 6.6x net debt to EBITDA). Such debt levels are clearly not a major concern near-term given current interest rates and the availability of cheap long term finance - but as (if?) and when bond yields gradually 'normalise' I can see this becoming much more of a differentiating issue, and possibly one of increasing and significant market concern.
On a modest yield, paltry current divi growth and lowest cover level, UU looks the most exposed currently - particularly when you throw in the highest P/E and EV/EBITDA ratings in the sector and the sector-high leverage level.
If you hate seeing buys reported as sells etc!!!!!!
Has already been sent to Martin Lewis, Daily Mail, Moneyweek & Watchdog.
New chancellor, shaddow chancellor & lots of others inc Stock Exchange aim committee.
If you follow tweeters etc, send it to them please!
If this petition doesnt reach 10,000; then imo we might as well have not bothered as it will almost certainly be filed B1N; @ 10,000 the government should respond.
So If you havent yet signed or indeed have but havent passed it on to others, then nows the time to do so.
" Today's European power markets have been broadly shaped by three crises: OPEC pricing in the 1970s; the acid rain scare of the 1980s; and affordability in the 80s/90s. They forced the hand of European governments to try and achieve what has ..."
"It may be cutting water prices, but LSE:SVT:Severn Trent has still made more money than last year, while reducing the number of complaints by over a third, in what boss Liv Garfield called a "good start" to the new five-year regulatory period.In ..."
Oh no hear we go again. I think I'll sell at 2250_and buy back when the sale falls through. I'd be sad to see ST fall into foreign hands having worked for them in the past. I believe they are the only water company who have not been taken over. I was working in the water industry when the 12? Authorities were privatised its strange to see how they have all fared so differently. I still think they'd be better in public control although the quality of service is probably better than it was. HOLD FOR NOW.
Canadian investment firm Borealis Infrastructure is considering a 5 billion pound ($8 billion) bid for Severn Trent (SVT.L), the Sunday Times reported, two years after the British water utility rejected its previous approach.
The newspaper reported that the two sides opened talks last month and discussions were still at an early stage.
In 2013 Severn Trent rejected a series of takeover offers by LongRiver Partners, an investment fund consortium including Borealis Infrastructure, saying they did not reflect the firm's long-term value.
Severn may be more susceptible to a bid now, the newspaper said citing sources close to the situation, as the industry regulator has imposed tighter profit rules for the next five years and the company has also had a change of chief executive.
After pre-election caution I have bought back in though it has cost me 21p a share overall. While this is not clever, I like the yield and the thought of a fresh flow of business confidence over the next few years.
The July dividend should more than compensate for the 21p jitter loss and the sp has been up in the 2200s in recent past.
This is a 'calmer' in my SIPP for the medium term.
I have come out at 2141, a bit too early with hindsight, but my nerves are not strong enough to see this drop down to below 2000 in my imaginary belief that the current high price is supported by some tap-dancers who are about to move on.
No real business or financial logic from me, just caution and cash-building for the rocky ride ahead in markets in general.
Divi more like 4% at today's value which makes ST worth holding. I've seen a lot of growth since I bought so the yield to me is far higher. There's always the danger of a takeover which would mean I'd have to find another cash cow.
"Sell Severn Trent shares, Danny Fortson recommended in the Sunday Times. They hit £22 on February 26th for the first time since the water company rejected a bid at that price 18 months earlier. They fell after the dividend was cut by 5% to pay for enforced cuts to household bills. The shares could fall further, the Inside the City columnist said. Rating agency Moody's changed its outlook to negative because the dividend cut may not be enough to maintain the group's credit quality."
"As 2014 draws to a close, focus inevitably turns to the new calendar year. The FTSE has picked up again after October's flash crash, but risks still remain for equities. Earlier this week Prime Minister David Cameron warned of a second looming ..."
It looks like the reduction from 5 to 2 Executive directors required that Mckeon was replaced. The ship is now captained by two novices, still I suppose that they won't be there too long before a takeover comes along.
* Bookmark the links if you wish to 'pass the LINK/s on'.... or read later?
* The Campaign is specialized among the investing fraternity only. The population as a whole would hardly vote for a ban on shorting...most people have never heard of it, have they?
Whereas, the other Govt epetitions command votes from the *general population..and if you check, NONE are doing better than a handful of votes !
Deramping SHORTERS !
Shorting a rising stock....is much worse when it is done by your resident posters that seemingly are your buddies and convince 'long' holders to give up!
What many pi's fail to grasp is the extent that shorting is taking place. Often we tend to think that the 'shorter' is gone, 'he' is out of the way? You'd be wrong in most cases, for ( he ), the shorter, is often joined by others that keep the stock down !
Some stocks fall after GOOD NEWS!
The main reason for many pi's selling, is they are afraid they'll be left in losses AND because they FEAR shorters !
Consolidating shares often sees the sp fall as the *multi-bagger potential is greatly reduced. Shorters know this and will take full advantage to get 'longs' to give up and sell !
BUT, where does that leave the genuine investor that has put stocks into their pension funds?...holding losses again!
* Once pi's know the stock is being shorted...they'll SELL UP IN THEIR DROVES !
We can't both WIN !
The 'shorts' therefore 'win' their bets, whereas the 'longs' lose the best part of their investment, possibly for some time to come......and just when you thought this couldn't go any lower, THEY'LL SHORT THE STOCK AGAIN !
* Thanks for all your support. We are now heading towards 5,000 votes!
* Investors are saying something? They are voting in their hundreds !
# The big problem with shorting is that THEY (the shorters) WOULD most likely lose most of their money IF they just 'bet' on the price going down without trying to 'help' it down?
'Catch 22' .... No one would know of an RNS to be released that will contain BAD NEWS, if they did and then 'shorted' the stock, then they are guilty of 'insider trading'.
The only sure way to short a stock and WIN is to spread dis-information to defame the company with help from other posters that are in concert with them. To ENSURE that they don't lose the biggest part of their 'short', ironically, then, they must deramp with (seemingly) believable posts.
* When the pro's do it, they simply get the media or well known 'crooked' tipsters, analysts or brokers to do it for them. (say no more).
# The campaign against shorting is for the benefit of the 'cheated' investors that cannot control their investments due to the dirty tricks played out by co-ordinated shorting !
The results will be reviewed by Govt legislators for further action! The FCA will be asked by Davide Serra to conduct an investigation into short selling practices, with the view to either ban short selling, or to be better regulated !
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