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Apologies MikeM14, I live in Ireland where FIFO still operates except for various rules. Had no idea UK had changed as don't so UK tax returns.
Clued,
"you do know about FIFO treatment re shares sold under CGT ?".
Where are you getting your information? It's not been first in, first out, for over 14 years! The present arrangement ("Section 104" holdings) has been in force since April 2008. If you build up a holding in one company over various tranches of buying at different times, then you work out the "average" cost over the whole pool of shares, and use that to work out any gains when you sell. The exceptions are the "bed & breakfast" rule and the "same day" rule. It's all explained in the HMRC website.
https://www.gov.uk/tax-sell-shares/same-company
Mike.
LondonCentric, re your holding of original shares at £11.30, you do know about FIFO treatment re shares sold under CGT ?
SSE saw this crisis coming & positioned itself well, you have to respect the Scottish they are pragmatic & logical in business. SSE got rid of fossil fuel generation decades ago (still has gas gen legacy capacity has the grid needs it). It is way ahead of its competition & has knowledge of battery storage technology from decades ago which it invested in.
So SSE is a safer place for your money as it is possitioned for growth & innovation. I got 2 positions, one which i bought many years ago at @ 11.30 which I dont sell & another bigger position where I buy & sell with the volatility.
I certain did and went from 16.70 to 18 at which point exited. Very happy with that profit in 2 days. Perhaps the Investor days have highlighted some impetus as well although fallen to 17.62 at close. Volatility is where the gains and losses are, its just judging when the ins and outs are right and when you are happy with your P&L.
The appointment of Lizz is good news for SSE as she is against a windfall tax. Clarity on her energy policy seems to indicate she will give energy producers loans to subsidize the price of gas & electricity so up until the point SSE aggrees to opt into the voluntary scheme of long term fixed price on renewable energy it will realise huge profits.
The only danger I can see now is the risk of a Labour government & if that happens god help us!
Fair enough Deadly4U, agree that Cap Gains should not be included in Earnings for P/E Calc. Truss's treatment of Energy bills boosting the sp today....onwards and upwards !!
Spark
Buy lol
Hi Clued, SSE sold it's stake in Scotia Gas last year which bumped up earnings, SSE's core earnings are still expected to grow this year, but if you adjust the earnings without the SG sale then current P/E would be around 18. That's why using P/E without adjusting the earnings for exceptional items is somewhat misleading :)
Sparky300, I still hold and much short-term depends upon effects of Truss's action on elec charges.....
Had a good few months with this share , up and down, but really can’t see where tomorrow’s opening price will settle. Sorely tempted to jump back in and purchase especially with the current positive broker recommendations calling over£19? Any thoughts?
Hi Deadly4U, I simply used the LSE data as follows to get the PE Ratio:
Shares in Issue 1,068m
Market Cap. £17,975m
Market Size 1,500
PE Ratio 5.860
Earnings 287.30
Dividend 82.10
Yield 4.877%
So a Forecast PE of 15 seems unreasonably high, why such a big drop from 5.86 ?
Schjmh
Drax is down because
Karsi Kwarteng said we must stop burning trees immediately !!
Went down well
forward P/E is at 15, so pretty reasonable
investors who are selling are concerned about;
1) Inflation,
2) Recession,
3)Windfall tax,
4) Bad debts ( customers not paying bills, and ridiculous costs to terminate supply, including Court battles)
I'm sure there are more.
With a Current PE Ratio < 6 really gotta wonder who is selling here !!
Well said Deadly4U. The drop today looks likely caused by the EU stating that the current Energy Pricing Model has to be changed soon. Gas price capping mentioned as is using Oil to produce Electricity, etc.. Wind Energy pricing presumably will lose the premium of energy unit pricing using gas !!
Same with Drax, could it be the windfall tax issue raising its head again and who it could affect?
Clued, I completely agree! People before profits, however, in SSE's case I would class them as a fair and decent business. In general the excess profits they are making are not of their own making. I would condemn businesses such as Vitol and Trafigura, which are private Swiss commodity trading companies who are making $Billions just by buying and selling gas and oil futures, fuelling the fire of supply and demand in forward energy markets. That greed and avarice needs to be stamped. For SSE to announce a 20% donation of profits to poor families would be a nice gesture, but in reality would only go into the pockets of greedy corporate trading companies who know exactly how to game the system.
I am deeply saddened by the state of the UK's energy prices and am certain people will die this winter. Alas there is nothing we can do, as the saying goes, Hard times make strong Men, Strong Men make good times, Good times make weak Men, Weak Men make Hard times :)
I can’t find any mention of anything either. Hopefully just market sentiment/wobble.
I’ve been wondering this. Been searching online nothing? Anyone
Only thing I can see is the scrip dividend. Investors choosing shares instead of cash.
Big drop today? How come , any opinion? GLA
Deadly4U, generally agree. I meant Centrica Gas profits by the way, which is BG, so you're right there !! There are some businesses out there that apply human morality and fairness because at end of day humans are behind the decisions, and the ultimate test of morality and fairness are those who do the right thing morally when legally they don't have to (including societal pressure), but big business at the top attracts the sociopaths who lack empathy described as 'hard nosed'. I'd be willing to take a 20% div cut to help genuine energy poverty, I wonder if other shareholders would concur so maybe SSE BoD should put it to a vote. Forgive my naivity if so, but we'll all die someday and ......!!
Clued, British Gas announced 10% of profits, not centrica, so they only pay like $10 M, if CNA it would have been laudable. On SSE selling Electricity for below market price, not going to happen, Gov needs to reform the CFD system and instead guarantee minimum profit margins, and not minimum prices. Business doesn't care about fairness, only profits