Pennon Share Price (PNN)

Reginia will be much missed by, well NO ONE in the Water business. Least of all PNN's bod.

Pennon Group: Nomura lowers target price from 710p to 705p and retains a neutral rating.

PNN's CEO, known as a quiet cove, was said to be furious at OWAT'S stupidity in recent price negations. Lots of PI's WERE considering an investment in Northumbian, AUT, CWW, Scot Power, Thames Water, BAA, etc., etc. but you have to be in it, to win it. MM's were climbing on each others shoulders to ridicule the idea that HP would bid for AUT - I backed my own judgement as usual.

Pennon Group: JP Morgan cuts target price from 695p to 670p and reiterates a neutral rating.

And who do you suppose is more responsible (and hence odious) in your view in regards the share price of Pennon, politicians, or speculators? Perhaps they are one and the same! - Disclosure, I am not invested here, and not looking to buy in at the current price. Would consider buying in on a retrace.

The trading statement from Pennon yesterday confirmed that South West Water was still trading strongly and should outperform the targets set for the current regulatory round, which ends in March 2015. As indeed it should. But while the prices of those recycled materials have seen some recovery from the lows of October and November, they are still running at below the levels seen in the summer. Pennon was cautious about any further recovery, so earnings in the next financial year starting in April will be broadly similar to the current year. This suggests something in the 40m pound area for both years; one analyst was looking for more than �70m for 2014-15, but it looks too early for a proper view. Some analysts had been pencilling in a much sharper recovery next year, so estimates were duly cut. The fall in the price means the yield on the shares, traditionally the lowest in the sector, is now approaching the others, 4.4 per cent for the current year. This gives some support, but there could be more shocks to come. A mere "hold", then, Tempus concludes by saying.