Calling all experienced share traders!

nearlyretired2004

With Natinal Grid trading at a 5 year high and close to an all-time high is now the time to sell?

I got most of them free as an ex-employee from profit sharing schemes and have held on to them for the yield.

I dont need the money in cash but are they realistically likely to go much higher .... should I sell and buy back if the price drops significantly?

Last time I did something like this was to sell all my BG shares at an all time high of about £7 - they now trade around £12 and have been much higher !!!!!!

Any ideas on how to make a decision?

grey_gym_sock

the rise is mostly due to markets generally rising, and i suspect defensive shares have beaten the market in the last month or so.

i don't think it's that crazy a price ... it still yields about 5%, and it's there aren't many ways to get that kind of yield now - not without taking more risk. NG's new dividend policy is rises at least in line with inflation.

i've wondered about reducing my holding, but will probably leave it alone. if you have a very large holding, could consider switching part of it to other shares. switching to cash doesn't look so promising to me, if you don't need the cash.

Thrugelmir

I would hold the stock. The question for me would be in % of my portfolio held in this one share. As I wouldn't want it over 5% -7%.

atush

Yes, really the answer to this is how much Nat Grid do you hold, and what % is it of your total portfolio/wealth?

If you did sell, i'd look to buy something and not leave it in cash.

Have you ISA'd this holding?

nearlyretired2004

520 shares current value circa £4,200

About 2% of my 'portfolio' - but I dont buy and sell shares (much).

Most of my money is in cash (sigh.....) ISA's, SIPP, etc etc

As i said in my OP, the shares were 'free' as profit share .... I have liked the yield so would see it as taking profits and buy back similar number of shares if/when they dropped in price......

Any further views?

MoneySaverLog

nearlyretired2004 wrote: »

With Natinal Grid trading at a 5 year high and close to an all-time high is now the time to sell?

I got most of them free as an ex-employee from profit sharing schemes and have held on to them for the yield.

I dont need the money in cash but are they realistically likely to go much higher .... should I sell and buy back if the price drops significantly?

Last time I did something like this was to sell all my BG shares at an all time high of about £7 - they now trade around £12 and have been much higher !!!!!!

Any ideas on how to make a decision?

I'm not selling what I have, dividends will be in line with RPI which is a good thing! Long may this bull run continue. My target would be £12 in 2017 when my sharesave options kick in then.

Declaration: I work for National Grid, and this is my opinion only, it's not based on any insider knowledge.

atush

nearlyretired2004 wrote: »

520 shares current value circa £4,200

About 2% of my 'portfolio' - but I dont buy and sell shares (much).

Most of my money is in cash (sigh.....) ISA's, SIPP, etc etc

As i said in my OP, the shares were 'free' as profit share .... I have liked the yield so would see it as taking profits and buy back similar number of shares if/when they dropped in price......

Any further views?

That isn't too much as a %, and as they were effectively nil cost it means you wont have lost money on the investment.

But if you don't mind me asking, why is most of your money in cash?:eek:

Ifts

MoneySaverLog wrote: »

I'm not selling what I have, dividends will be in line with RPI which is a good thing!

I too hold NG shares for the dividend.

Bought some back in May 06 then sold them all for quick profit in June 06.
Then purchased more again in May 2010 that I've held till now.

sabretoothtigger

12 PE it says ? might get them cheaper but the situation of seeing them half seems unlikely for such a business. Defensive infrastructure can even go up in a nasty market as people like long term security.

So sell them if they are making some awful long term mistake, biggest thing I hear is negotiations around nuclear power


Why did they drop so dramatically in 2010, how was that fixed

I never drew a chart before but I should have as this stock runs like a railway. Its broken out this year for some reason. res 840p
A trade might be to sell 796, buy 700 to 730 area but sounds not that great to me.
In order to sell especially the presumption has to be they rose for false reasons, volume is not great but nothing on price alone suggests overbidding

Ifts

sabretoothtigger wrote: »

Why did they drop so dramatically in 2010

IIRC they announced a rights issue

MoneySaverLog

sabretoothtigger wrote: »

I never drew a chart before but I should have as this stock runs like a railway. Its broken out this year for some reason. res 840p
A trade might be to sell 796, buy 700 to 730 area but sounds not that great to me.
In order to sell especially the presumption has to be they rose for false reasons, volume is not great but nothing on price alone suggests overbidding

My personal view is I don't think we will see the low 700's again anytime soon unless they bring out a new rights issue.