Yes, for now. But there's a long time to go before the next election (probably) and anything could happen before then. Also remember that share prices don't usually go straight up or down, so I see this as a bounce, that's all, at present. The underlying concerns are still simmering away in the background.
I was previously a long term investor in NG but until the outcome of the next election is known there is too much risk here IMO and better opportunities elsewhere. If you're going to invest in NG, or remain invested, at least make sure you're doing it with your eyes open.
Because it is not enough (obviously). This money would be much better used in the business or if the directors can see no use, then paid out as dividends. As it is it simply gets lost in the vast market.
Ditto - I'd say that utilities have been given a kicking purely because of the JC nationalisation threat, and now that he's been on the back foot owing to his deselection habits, and now his obfuscation over anti-zio nism, coupled with TM riding high, the results are there for all to see.
Been having the same debate with myself on the UU. board ... MS have been positive, utilities up in general especially water today, Corbyn fears receding and bond proxies looking better value if the threat of a global trade war dampens growth and interest rates?
In which case the likes of NCYF and other bond-like ITs should be rebounding, but not the case so far.
GSK improved thanks to its Pfizer / Novartis decisions.
Not found any external comment attempting to explain why UK utilities are so strongly back in favour. Not complaining.
NG along with many other high yield stocks which has taken a beating over the last couple of years but the last few weeks have seen signs that they may have levelled-off and perhaps even started a tentative climb.
IMB, SSE, GSK similar stories. GSK has had positive news of late. Maybe there are other factors at play like M&A in utilities sector, Corbyn mis-steps but it seems that at these valuations, increased volatility and uncertainty in the market their time may finally be coming. Let it be so, we have suffered long enough!
OK-I get that the threat of nationalisation is having a negative effect on the share price but cannot understand why the continuing share buyback is not counteracting this (increasingly unlikely) negativity. Answers please.....
" 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.
Important message from the Financial Conduct Authority:
Posting inside information that is not public knowledge, or information that is false or misleading, may constitute market abuse.
This could lead to an unlimited fine and up to seven years in prison.
If you have any information, concerns or queries about market abuse, click here.
The content of the messages posted represents the opinions of the author, and does not represent the opinions of Interactive Investor Trading Limited or its affiliates and has not been approved or issued by Interactive Investor Trading Limited.
You should be aware that the other participants of the above discussion group are strangers to you and may make statements which may be misleading, deceptive or wrong.
Please remember that the value of investments or income from them may go down as well as up and that the past performance of an investment is not a guide to its performance in the future.
The discussion boards on this site are intended to be an information sharing forum and is not intended to address your particular requirements.
Whilst information provided on them can help with your investment research you need to consider carefully whether you should make (or refraining from making) investment or other decisions based on what you see without doing further research on investments you are interested in.
Participating in this forum cannot be a substitute for obtaining advice from an appropriate expert independent adviser who takes into account your circumstances and specific investment needs in selected investments that are appropriate for you.