Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Hi Testpack. I had a target price of 1700, which was well reached then surpassed, and it's still way ahead. My free holding is only a few % of what is was from 1200 upwards and I'm optimistically awaiting a pullback to the 1500s.
The debt is massive and next years dividend has been capped 60p. IMO The yield will be too low to warrant such a high SP (if SSE is seen by the market as an earning investment). However, with Dogger Bank and the other projects it will of course mean that at some point the dividend should be much much higher. A big SSE rollercoaster and great investing opportunity awaits so if holding at a loss, then hang on in in there would be my opinion.
It's worth mentioning that this strategy of 60p then 5% annual increasing was presented before the hike in energy prices and inflation kicked in. So there could well be a change in this as investors may look for a return at least equivalent to inflation.
6% Yield of 60p dividend would mean a lowly 1000p SP, 5% yield of 120p means 2400p, or 8% means 1500p, which is all food for thought as to how big of a rollercoaster we could be in for in the coming years if yields become all important.
We'll see. Cheers and GL.
With the 'Windfall Profit' tax now unlikely to be levied on Electrical Generation companies, it is baffling to me why the sp is in decline, when we know there will be £M of extra profit coming our way from increase in prices. Any thoughts anyone?
What is going on today looks like we are heading south (before the storm hits)
Mostly its the rising tide lifting all ships.
It matters not, the SP ups and downs are just background noise to what is a solid long term stock with a reasonable dividend that is well covered.
Failford,
"Any ideas folks re jump".
Probably media headlines suggesting that a windfall tax on renewable electricity generators is now *less* likely, plus general market is currently up, plus possibly reaction to the announcement of a confidence vote on the UK PM.
Mike.
Any ideas folks re jump
Both Shell and BP are up c5% in the past 2 weeks, sse is down 5%. WE have a Govt. which is out of control and devoid of ideas. The Govt 'green'policy is now in tatters in offering big ax incentives to explore and produce more fossil fuels. Companies that are investing in 'green' energy. to reduce fossil fuels are penalised in the same way as fossil fuel producers. I understand it is attempting to wean UK off Russian fossil fuels, but replace it with North Sea FF does not make economic or 'green' sense. Renewable energy projects can be in the market place well before new FF discoveries. Shameful IMO.
If it results in a drop in the SP today, I will probsbly add to my holding. I bought another 200 shares yesterday below £18, and I see anything below that price as good value at the moment.
I have now got limited free cash left to invest but if it goes to £17, I will add another 200.
If it drop further next week I will again add more.
SSE is an extraordinary green energy play and I will continue to add when appropriate.
Well it looks like the 'windfall tax' gates have opened on oilies, and its not just the one off hit I was expecting. The only silver lining is the tax breaks announced alongside the WT for investment. SSE and many other green energy companies are heavy on investment, so could be left alone, or at least the impact minimised.
Its very unsettling though as its set a precedent, a company in hard times is on their own, but if you make too much money we will want a bigger slice of the pie.
Why on earth would any business want to trade in that environment, the legislators have in my opinion made a bad choice with the WT if they want companies to come to the UK, and I think they know it hence the attractive tax breaks to soften the blow.
Perhaps if they really wanted to help they would reduce tax on fuels, which is aimed solely at the consumer, and directly increases the cost of all products through increased transport, heating and manufacturing costs.
This was briefly flagged as an issue by Proactive Investor yesterday:
"In fact a glitch in the system meant many announcements from the regulatory news service of the London Stock Exchange Group PLC (LSE:LSEG) were delayed, hence the confusion."
I scan the RNS's diligently on Sharescope between 7am and 8am every morning and these did not appear on my feed. I complained about this to them and they replied today to say they were "not aware of this issue" and to report further instances of this drop off to them so they could escalate it. Anyone else found this? If so, it needs action. I've suggested to them that their system should have a timestamp of when they themselves first see an RNS, and it goes without saying that they should sort that list according to that timestamp so newest entries appear at the top.
YES, Grayling, and statement that Low Carbon investment higher than profits !!!!!
I really hope that SSE, BP, SHEL, DRAX, etc...continue to pay their planned Divs...............Todays RNS dividend of 60.2p PS to be paid this coming September.
the government collects around 80% on the price of fuel. So if fuel is selling at exorbitant prices then the government is already harvesting a bumper take.
Why is Rishi etc not acknowledging this fact instead of making out that the oilers and SSE are profiteering . Instead the Labour party and the media are bleating on about the excess profits instead of focussing on reducing the rate of duty and VAT .
Seems like they just want to decry and penalise any company that is doing well.
Yes, a nice bounce, thus the dangers of correctly timing day trading !! A Windfall Tax is not a GIVEN, all articles I've read state nothing definite. One option being considered like many others. George Soros said at Davos yesterday that Russia Ukraine war could easily become nuclear and wipe us all out....so there's a thought !!
After yesterday's overdone rout SSE should have a bounce today. Easy money.
Totally agree Paul2566. I'd even go so far as to say a WTax is on a parity with looting. Why not round up all the billionaires and high wage sportsmen, eg soccer players, and tax them on their income at an extra 20%, etc... I really hope that SSE, BP, SHEL, DRAX, etc...continue to pay their planned Divs. Share Buybacks, but reduce by the same amount their Low Carbon Investments if they are Windfall taxed because that would send a very clear message to Govt who are in essence as dishonest / moving the goalposts as Putin is re Ukraine.
Grayling, article says sp target increased to 1937p, look at it on here, though from Buy to Neutral !!
Nelly, Citigroup moved from Buy to Neutral but increased target price to 1937p so effectively a Buy Rec given the current sp !!
Beggars belief that there is such a knee-jerk reaction from those that should know better.
Personally, I doubled my holding today firstly at 1755p then ~1720p. for an average of 1747p with duty and costs.
Then sold half of todays acquisitions @ 1786. Sorry to gloat (well not really)
Hoping for good numbers tomorrow to complete the job.
There is also a broker downgrade today from Citigroup (neutral) from buy and reduced price target of 1829p.
Mr Putin’s decision to invade Ukraine has transformed the economics of renewable electricity producers in UK/EU with the SSE share price rising from £16.75 on Feb 24 to £19.25 on May 23. A report in the FT today of a widening of the windfall tax net by Mr Johnson’s government see the SSE share price plummet £1.75 in no time to £17.50.
deputy to sunak in telegraph yesterday was saying its going to happen.....and he or some ex treasury idiot said mrs thatcher would have windfall tax which is complete nonsense as she cut taxes and red tape beauaucracy
all the parties are communist in uk now and speak same language whatever the issue
There is a suggestion of a windfall tax.
I think its doubtful, in fact the whole idea of taxing good companies in excess of normal taxes seems ill advised.