picstloup
14 Feb 2018
SSE v CNA I'm thinking of dipping my toe (back) in the energy supply pond, and am unsure whether CNA or SSE looks a safer bet. Both down c8% ytd, both paying a stonking divi (assuming CNA doesn't cut its).Or should I keep out of this while the Tories seem determined to land us with Corbyn as PM?
Mouthy Southy
03 Feb 2018
Re: OVO, Cazenove stop press Added Good morning MT1231With the price having dropped about 70p since its mini rally after the trading statement this week, have you added to your holding after all ?Cheers
marktime1231
02 Feb 2018
OVO, Cazenove stop press Added The OVO response was something like "we are always ready to learn" ... hardly a denial, on reports that they were stretching consumption estimates a year ago, but why? Boosting cash flow after consumption was light during mild weather?How are the upstarts doing on customer service, the headlines always concentrate on the big bad boys like nPower? OVO have had a pretty good rep until now.Surprised the wholesale energy price upswing since mid 2017 has not caught out challenger utility companies who entice us to switch with cheap tariffs. Warnings in the Grauniad last week, and the suggestion that Ofgem is worried some suppliers would not pass if their business model was subjected to stress testing.Maybe standard tariffs which include a safety margin on wholesale price movements are not such a bad idea? Or do they all have clever hedging strategies? SSE have already spat their domestic dummy, but Ofgem caution might influence where price caps are set and enhance the prospects of the SSE-nPower combo.I see Cazenove welcomed SSE's recent positive update with reaffirmed neutral and 1450p. Nothing as yet from DB, meanwhile the sp continues to ebb. I will add if it sets below 1265p --- Stop Press Boom!
Lupo di mare
02 Feb 2018
OVO Energy This'll cheer you up "Energy watchdog Ofgem has announced an investigation into the information that Ovo Energy gave some of its customers about their energy use.It will examine whether the independent supplier breached licence conditions by giving customers misleading consumption information.Ofgem said: "Incorrect consumption figures can lead to customers receiving inaccurate bills, annual statements and other important information. This in turn can lead to customers being unable to properly manage their accounts and deciding to switch based on incorrect information."It added: "The opening of this investigation does not imply that we have made any findings about non-compliance by Ovo Energy."
marktime1231
31 Jan 2018
Re: Trading update Of course the buy back was ineffectual, if they started when the sp was around 1470p ... while broker consensus was positive, the worst broker has been the maverick self-fulfilling outlier 1300p from DB ... and we have ended up in the 1270's at one stage last week.A decline of 14% in the sp despite the promise of a sustained progressive dividend being delivered on, despite commentators saying the sell off and fears of future decline in eps was being overdone, despite eps outcome likely to be similar to 2016 when the sp was 1500p+.The buy back has done nothing to counter the fear mongering. No effect whatsoever on the sp. Ineffectual. Fact.Besides. The effectiveness of a buy back is to hold up or increase the share price, not to arrest its slide otherwise by definition that is going to be a waste of money. You might as well let the price slide and then buy back. Or put the cash to work.So yes wasteful and completely ineffectual. Quibble erat demonstrandum.
Akis1999
31 Jan 2018
Re: Trading update "Disappointing note buried in the detail, the wasteful ineffectual £500M buy back of shares which are now worth just £455M today. The exercise has p'eed your and my value of about 4.5p per share into the wind. "I am completely against share buybacks, I think it borders fraud and should be made illegal. I also think the government are starting to investigate this practice and it is high time they did, as so many naive investors and share holders believe the blatant lies. In my opinion it only serves to line the pockets of directors and middlemen/brokers.However, on your quoted statement, I might disagree. The share price has dropped since the buybacks, yes, but just as you cannot attribute a share price rise to the buyback, equally so you cannot attribute a fall to it (being ineffectual). In other words the market is an extremely complicated system with millions of participants and no one can foretell a share price in the future. In, more, other words, it could be that the share price would have been even lower today had those buybacks not taken place and maybe the buybacks were beneficial.
marktime1231
31 Jan 2018
Re: Trading update Improved profitability offsetting what looks like a 5-6% loss of retail customers year-on-year. Reducing cap ex. I will take eps of 116-120 from 125 last year, easily covering the progressive 7% dividend, too much fuss has been made of that cover narrowing. Hold on this might be the start of a recovery. Not a peep from brokers so far.The update was clear that more details of the merged domestic business separation will come in a circular in June 2018, but the message I take away is that both enterprises will look to deliver a safe sustainable but significant and progressive dividend. SSE know what we are here for.Disappointing note buried in the detail, the wasteful ineffectual £500M buy back of shares which are now worth just £455M today. The exercise has p'eed your and my value of about 4.5p per share into the wind. I have been looking to see where this money might have been better spent, debt reduction perhaps. But debt is still cheap, and best left on the balance sheet at this time? Investment in non-regulated business development the story for next year perhaps?Despite studying annual report and press announcements of a derisking scheme with L&G it is hard to say what pension scheme deficit reduction is required ... a large surplus at Scottish Hydro rubbing out a large deficit at Southern?Intangible assets and goodwill impariment do not appear to be a huge problem.All good then.
Special A Gent
31 Jan 2018
Re: A Buy from Me Sold today Hi everybodyJust bought a 2nd tranche to replace the 2nd tranche sold before ex-dividend.Bought @ £12.80 with costs included purchase equates to £12.91 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- -----Just solld this tranche £13.10 to take a 19 pence profit.Moved over the BARC nice little fall S.A.G.
PrefInvestor1
31 Jan 2018
Re: Trading update Hi All,Market certainly liked the update, shares up ~1.3% on a down day.But it looked to me as if the number of retail customers had fallen since the last report (though some might think that a good thing).Also their words under "Financial Outlook" still raise questions in my mind about how the dividend will be re-rated after the merger (assuming it goes ahead).Key questions in my mind are:-1. Would you still want to own the power generation business if the yield was significantly lower ? or the retail business for that matter ?.2. Are you happy to end up owning both the power generation company AND the retail company after their proposed split ?. Or would you end up having to sell one or the other ?.3. What is the market going to think when these financial decisions have been made ?.I like the company and its approach. But obviously price caps and JC position etc. also raise concerns in my mind. Just dont like all the uncertainty myself.ATBPref
viko
31 Jan 2018
Energy shares back in favour Energy shares will be back in favour soon We have reached the bottom
Hydrogen Economy
31 Jan 2018
Re: Trading update Looks in line with expectationsAdjusted EPS 116-120p Vs (Digital Look mean forecast 115.6p). Down 8% on 2016 return to growth forcast in 2018/19Dividend increase by min RPI (DL Mean forecast 94.5p )~7.3% yield at current SPFair amount of invstment, material increase (516MW) in renewables capacity in 2017 further 481 MW under construction, aiming to grow total renewables generated from 6.5TWH in 2017 to 12 TWH in 2020.Retail-SSE and innogy SE in pre-notification discussions with CMAH2 Holding for now
Lupo di mare
30 Jan 2018
Trading update Tomorrow, boys and girls.
PrefInvestor1
28 Jan 2018
Re: Have we bottomed ? - Mouthy Southy Hi MS,As SAG says the trading update at the end of January should be interesting. Overall though I am sorry to say that my personal (negative) views on this stock haven’t changed from the assessment that I made and posted in some detail in mid December.Just maybe the update will change my opinion, but I suspect not.ATBPref
Special A Gent
28 Jan 2018
Re: Have we bottomed ? MouthyYou will soon know, there is a trading update on Wednesday.S.A.G.
Mouthy Southy
27 Jan 2018
Have we bottomed ? Ahh if only we had a crystal ball to answer that question eh !Not long ago SSE was buying back its own shares to cancel them. I stand to be corrected, (by some brighter person) but I'm sure the price they bought them at was higher than it is now. Also I believe some of the staff sharesave schemes which are supposed to offer staff a 20% discount on the existing share price are now in danger of being better buying the share in the market as is option price is higher !The next few weeks / months are going to be a bit of a rollercoaster me thinks. As a shareholder who like many on here wished they had sold earlier, I will not sell at these levels, something that I could very well regret in the future, but I'm happy hold for the present. DYORI hope I end up kicking myself for not adding to my holding while they are at these levels in the future !Cheers
