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Nevertheless the sterling trend has been up against the dollar
Big
I looked at the 6 month chart on here - yes it was the 23rd april - the number 23 caught my eye and attached results day to it.
https://uk.finance.yahoo.com/quote/GBPUSD%3DX
'sterling increasing against the dollar from about 1.235 on the 23rd to the current pushing towards 1.28. This obviously affects dollar earning stocks such as NG. Ahem,,,,, the pound was $1.27 on the 23rd. A wee bit of creative accountancy here Lti.
Flec
''I see plenty of posts I don't agree with and more often than not I just ignore them.''
you appear not to know the difference between a different opinion and someone posting your inaccuracies that may influence the naive that need a response.
Someone has posted increased investment and another has sold out - THAT is a difference of opinion about NG's future prospects.
Will of course be wiped out by sp drop. So I've sold out as I think it's damaged for some time to come and money can be better used elsewhere rather than hanging on and hoping.
You don't have to respond to me LTI, you could just filter me and you'd be free of my "nonsense" forever. I see plenty of posts I don't agree with and more often than not I just ignore them.
In these war-torn times, hanging on to LNG assets will be vital to a company's future. This rights issue has come at the wrong time in the business cycle with a stagnatory recession on the cards and a world war not that far over the horizon. Unless they sit on a significant proportion of the cash raise, the actions of National Grid at this particular time will be seen as one huge folly, as is their net-zero/energy transition illusion. It's 2024, not 2074.
Flec
''If the price drops below the Rights issue price I'll seriously reconsider ''
well until that happens there was no need to waste screen space was there on this board. No amount of trolling on here posting everything negative in 'your view' and also posting inaccuracies will have any effect on the share price going below 645p.
''You should take a chill pill and not get so wound up, it's bad for your health.''
Maybe you should take a pill to allow clearer thinking so nonsense is not clogging up this board, that needs responding to. I would have very rarely have posted on this board, but because of your nonsense I have had to post more in a few days than the previous 7 years.
I bought more rights today for 200p executing at 10.18am .
Then more shares at 884p executing 12.29 pm which I calculate is an evens price . ( same price as the div go's ex on 6th June at 39p )
Welcome for someone to point out if that is a wrong calculation .
On early Friday posts here claiming rights were cheaper I bought in a rush at 223p without checking that , I think that was wrong information .
Slight saving on the stamp tax which will not be on 645p take up .
This from here today .
Royal Bank of Canada cuts National Grid price target to 1,125 (1,250) pence - 'outperform'
More then the 14 Analysts expect the price to increase by 16% to 1035p I saw Friday .
Flec
''If the price drops below the Rights issue price I'll seriously reconsider ''
well until that happens there was no need to waste screen space was there on this board. No amount of trolling on here posting everything negative in 'your view' and also posting inaccuracies will have any effect on the share price going below 645p.
again, and with enough uncertainty who's to say that wont happen. Of course any opinions expressed on here wont make a blind bit of difference, so I'm not sure why you're even bothered about me expressing an opinion. You should take a chill pill and not get so wound up, it's bad for your health.
"why are you on this board ?- you are now officially a troll."
Not really, I've been watching NG for years, even my wife commented that I'd previously talked about jumping in when the price was impacted by the strikes in the US, in the end I didn't take the leap. If the price drops below the Rights issue price I'll seriously reconsider again, and with enough uncertainty who's to say that wont happen. Of course any opinions expressed on here wont make a blind bit of difference, so I'm not sure why you're even bothered about me expressing an opinion. You should take a chill pill and not get so wound up, it's bad for your health.
Flec
''Isn't it possible that many may decide to sell if there's a quick profit to be made there and then, rather than holding?''
why are you on this board ?- you are now officially a troll.
try thinking - an investor does not need to hold NOW - they are free to sell their rights to pocket a 'quick profit' as you call it.
"The new shares are already accounted for in the market valuation."
That may be true, but you've got Ex Dividend on the 6th June followed by commencement of dealings for the fully paid new shares on the 12th June; Isn't it possible that many may decide to sell if there's a quick profit to be made there and then, rather than holding?
The calling of the GE on results day meant no early base rate cut - now August at the very earliest but maybe not even then. This has resulted in sterling increasing against the dollar from about 1.235 on the 23rd to the current pushing towards 1.28. This obviously affects dollar earning stocks such as NG.
Flec
''So you're saying the over 11% drop on the 23rd was due to sentiment?''
give it a rest - of no interest to you.
It was results day, It was RI announcement day and GE called day.
''I suppose it's a case of seeing where it goes from here now, once the extra 1,085,448,980 new shares hit the open market.''
The new shares are already accounted for in the market valuation. There would only be a overhang not in NG investors hands, if shares were left with underwriters at 645p , which at the moment is looking unlikely.
Some decent sized algo trades gone through in last half hour. Could just be the way the algo was programmed who knows. Complete black art.
Brokers were positive recently e.g. 1250 plus.
Now we've been diluted i wonder what they will think now.
Perfect, cheers Lending. Makes sense and now i can follow the maths.
Ggplyr - strictly you are referring to Nihl paid rights being ca 2.03 as the right is to be able to buy shares for 6.45. And strictly the calculation for nihl paid rights is 8.9 - 6.45 - div (0.39) . So on 6 June, when the SP becomes ex-div one may expect the SP to fall by 0.39 after which indeed then nihl paid rights becomes the SP- 6.45.
But, as we all know, there is logic and there is Mr Market who is a manic depressive whose mood swings from overly optimistic to overly pessimistic - logic going out of the window.
Fleccy
I disagree that the debt is too high already. They do, however, have an investment program that has increased.
(Other than Shell or BP, does any other UK company have an investment program of £60B over 5 years?)
They have to stop the gearing rising too much over that period.
I agree that the sentiment has been damaged. I wont go over the clarity of the announcement, but a lot of the statements about grid upgrade projects have been in the public domain for while and maybe the dividend growth rate should have been moderated earlier.
If you look at it - they get a lot of money off the shareholders now, to pay some back in about 2 months time and then every 6 months. Maybe they should have frozen the dividend earlier.
It is what it is, though.
At least we get the benefit of the increased growth on the investment down the line. I am a bit fed up with a number of UK companies that are being sold off for takeovers barely hitting the peak prices over the last 5 years. (But that is another debate).
Hi All,
so on Iweb i can sell my rights for £2.03 currently. The share price for NG is £8.90.
the theoretical value of the rights issue as of now should be 8.90 - 6.45 - some premium/margin. Currently that premum is £0.42, which is 17%.
From anyones experience of other compays's right issues will this margin reduce as we get closer to the 4th of june? or perhaps if NG is less volatile over the next couple of days?
"the price drop on the 23rd was for the reason as with any other stock on results day with the additional news of a RI to digest"
So you're saying the over 11% drop on the 23rd was due to sentiment?
I suppose it's a case of seeing where it goes from here now, once the extra 1,085,448,980 new shares hit the open market.
...and NG could soon gravitate back to where it was last month. My own view is no significant moves till General Election result is known. Not everything is known.
No problem
That’s what this board is for.
To help people who are invested in NG
Particularly at this confusing time.
Perfect, thanks got it.
SlurmsMckenzie
in II account able to action via corporate actions at top of the account your NG shares are in.
Hope that helps