Share portfolio - heavy on Utilities. What to do?

eskbanker

nicsim wrote: »

the shares are in things like SSE, BT, National Grid, Centrica, Severn Trent.

nicsim wrote: »

I've always looked on the shares as being steady risers over the years.

It must be said that anyone looking to visualise 'steady risers' is unlikely to be expecting a price chart like this....



(A to E being the above five shares in the same order)

LobsterMemory

eskbanker wrote: »

Don't you think Thomas Cook shareholders saw them as being long-term steady risers too? .

Not unless they were insane

Johnnyboy11

Be very wary about the debt these utilities are carrying on their balance sheets. SSE for example has a Market Cap today of £13.6bn but Total Liabilities of £19.5bn (up 8% on the previous year). The Chuckle Brothers, Jeremy and John, might take a view the business is insolvent and simply expropriate the shares for the State. I think they've already said as much.

https://www.hl.co.uk/shares/shares-search-results/s/sse-plc-ord-50p/financial-statements-and-reports


Be mindful of Capital Gains Tax if you are selling a lot of shares at once.

DairyQueen

Johnnyboy11 wrote: »

The Chuckle Brothers, Jeremy and John,.

Enjoyed that (and noted for future use).

Thrugelmir

Johnnyboy11 wrote: »

The Chuckle Brothers, Jeremy and John, might take a view the business is insolvent and simply expropriate the shares for the State. I think they've already said as much.

Be a long drawn out court battle first. One suspects the united front of all the utility companies will tie them up in knots long enough to see the concept wane and die.

ffacoffipawb

Thrugelmir wrote: »

Be a long drawn out court battle first. One suspects the united front of all the utility companies will tie them up in knots long enough to see the concept wane and die.

Or threaten to dismantle the company, i.e. remove the generating facility and demolish the power stations.

If the owners are going to lose the business with no compensation, may as well torch it.

Thrugelmir

ffacoffipawb wrote: »

Or threaten to dismantle the company, i.e. remove the generating facility and demolish the power stations.

If the owners are going to lose the business with no compensation, may as well torch it.

A consequence of a Labour election win will be an immediate freeze on capital investment. Much of the funding comes from overseas.

Torching a nuclear power station isn't an option.

Apodemus

Johnnyboy11 wrote: »

Be very wary about the debt these utilities are carrying on their balance sheets. SSE for example has a Market Cap today of £13.6bn but Total Liabilities of £19.5bn (up 8% on the previous year). The Chuckle Brothers, Jeremy and John, might take a view the business is insolvent and simply expropriate the shares for the State. I think they've already said as much.

https://www.hl.co.uk/shares/shares-search-results/s/sse-plc-ord-50p/financial-statements-and-reports


Be mindful of Capital Gains Tax if you are selling a lot of shares at once.

That’s a slightly selective view of the SSE annual accounts! Comparing only Total Liabilities with market capitalisation is meaningless in the absence of the Total Assets figure. Looks to me that they have Net Assets of about £5.8bn. Still reasonably highly geared, but far from the impression of insolvency that you are giving.

sevenhills

I thought Corbyn was going to start a non-profit making energy company, there already are some; but nationalise the National Grid.

John_Smith_2019

Just to play Devil's Advocate and offer an alternative view:

You may want to wait until after the election before selling the shares. UK equities are relatively undervalued (compared to the USA) at the moment. These utility shares may rise in value if the Conservatives do win the election.

Also, utilities are generally considered defensive shares. So if we hit a recession (which is overdue), they may increase relative to the general equity market.

I would be tempted to hold onto them for a bit longer and switch to a generalised equity fund, once a recession arrives.