The reason for the decline is the current state of uncertainty around how the government will accomodate a couple of ongoing energy market problems. The first is the idea that despite a decade or so of deregulation, the UK has replaced a monompoly provider with an oligopoly that acts like a monopoly provider. As such, the market doesn't operate in a way that allows for the expansion of competition or that provides cost- effective energy as was originally envisaged. I think that the government would prefer to leave things as they are but publicv opinion and media sentiment are forcing its hand. Unfortunately, the governmnet does not have a real plan and so we have a state of flux. The second issue is the possibilty of government action to reduce bills by cutting the green levies. This is politically difficult given Cameron's emphasis on the new green credentials of the Conservative Party. He is going to look like a cynic and a scheister if the only way he can reduce nominal energy bills is to ditch green policies at the first sign of trouble. And so we have a state of flux. On top of all this, the profit warning was never going to have helped things with so long until the next div.
Agree,cannot really see why price in decline(apart from media/government utility bashing). The company is strong with a great dividend so should recover at some point IMO.
not much chat on this board maybe all holders of this share are ( like myself) in shock at the price decline could be open to a takeover by the likes of gazprom if it sinks much lower gla
21 Nov '13
And the buybacks keep coming....
.....At least that should give us a bit of confidence.
20 Nov '13
Despite buybacks . . . .
. . . . £2.25 !!!! I flaming well hope not as I've been buying lots from 365p to 341p.
20 Nov '13
despite massive buys backs !
despite massive buy backs of shares this is still headed south, will it go back to £2.25?
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