RE: Day trading novice23 Mar 2020 23:11
Water industry shouldnt be affected much at all billy as far as i can see, no big obvious reasons to me. But it has been hit quite hard in the general downturn. The only area they will lose money is in lost trade effluent charges from some types of commercial business (like laundries, metal workings, photolabs, chemical works etc) who dispose of difficult to treat waste and so pay a surcharge. That type of waste is only allowed under a specific agreement and is quite lucrative. The general income is set and fixed for 5 year periods, and generally metered, and is therefore a fairly stable known earner. Domestic consumption will be rising as we are all at home washing hands, commercial consumption will be going down, so on balance id recon income will be down in total, but not by a huge amount overall.
I think the current drop is overdone on the basis of the industry itself, but to me, too many people have lost the plot and joined the panicing herd seeing their money whittled down, and to me that is going to (stupidly) ensure the price drops past its 'value' point. Having said all that at the moment id not expect any change in the current trajectory in the short term until things stabilise a bit. Im watching closely and am anticipating blowing the dust off my wallet around the end of the tax year.