National Grid and Utility companies

theianfox

National Grid was one of the biggest losers on the market today. It's been a strong performing share all year and it's approaching ex-dividend next Wednesday usually a time when shares rise or stay solid.

Tonight new legislation was announced with immediate effect regarding the tax rules of companies predominantly in the energy sector.

Coincidence or insider information?

The_pc_tech

National Grid is prob a pretty safe bet long term as it's 'too big to fail'

OurKev

theianfox wrote: »

National Grid was one of the biggest losers on the market today. It's been a strong performing share all year and it's approaching ex-dividend next Wednesday usually a time when shares rise or stay solid.

Tonight new legislation was announced with immediate effect regarding the tax rules of companies predominantly in the energy sector.

Coincidence or insider information?

Strangely enough I was looking at nice dividend paying shares to add to an isa and couldn't understand why the drop today..... Then I heard tonight's news.

My thoughts were exactly as yours, but was it just a case of some people being a bit more on the ball than us?

Still I'd see a further drop tomorrow as an opportunity to buy in a bit cheaper.

grizzly1911

OurKev wrote: »

My thoughts were exactly as yours, but was it just a case of some people being a bit more on the ball than us?

.

I am sure the people that make the big plays are streets ahead of us. By the time any news breaks, good or bad, it is too late for Joe Punter.

Still up ~14% on the year. It is a utility after all.

Ark_Welder

Draft legislation announced on 24th May: https://www.gov.uk/government/publications/capital-allowances-contributions-towards-capital-expenditure-on-plant-or-machinery-draft-legislation

The fact that NG. and other utilities have been strong performers recently, combined with a general market fall looks more like an excuse for profit taking than anything else.

Perelandra

Centrica (British Gas) also fell by a lot (3.6%) today. There was much consternation in the office as people's share scheme holdings fell in value.

Thanks for the information on the tax, though- at least I know now!

(NB: I work for British Gas),

Ifts

Sector movers: Utilities drop as yield-hunters turn to US debt

http://www.sharecast.com/cgi-bin/sharecast/story.cgi?story_id=20928410

A_Flock_Of_Sheep

It's all just NOISE

MoneySaverLog

Speculators and traders maketh the price short term. Investors see profits over the long term

Glen_Clark

Politicians must be concerned about the bad publicity from more foreign corporations bidding for utilities like Severn Trent - after all, no other country in the world has sold its power and water supplies to foreign corporations!! So I was expecting more noises about regulation to cause a blip in their share prices.
But as has already been said they are 'too big to fail'. And the Government can't really get tough on regulation because it needs them to keep investing in the essential power and water infrastructure, which they will only do if they see continued high profits. On top of all that they need the power companies onside to implement their looney green energy schemes - another excuse to bump up the charges.
So even if the utilities may be slightly over valued at the moment (any suggestion of a pause in money printing seems to lower all share prices), they remain a good long term bet.

bowlhead99

Glen_Clark wrote: »

- after all, no other country in the world has sold its power and water supplies to foreign corporations!!

I understand the points made, but while this particular one is a fun headline when you want to moan about current or previous governments, it's not actually true.

Beyond direct corporate buyers, consortia of institutional (and private high-net-worth) investors own utility and infrastructure businesses the world over. And aside from such private funds, many utilities are listed and so ownership of them can be traded between people all across the planet.

I have a bit of First State Global Listed Infrastructure for example, over 40% of its assets are utilities and 88% of its holdings aren't UK listed.