RE: Failing Energy Suppliers6 Jan 2022 23:52
I can definitely see this going higher, potentially quite a bit. The tangible net asset value is around 270p putting aside anything else.
We with the SP rise at highs not seen in a while, optically it becomes acceptable for the Gov to start selling their bags. There are two sides to the Gov shares sales, sales instigated by NWG and sales triggered by the Treasury. NWG are limited at how quickly they can instigate the share sales to 5% per annum. However Treasury can dump quicker, as seen in 2018 when Treasury dumped 7.5% in one sale around 271p.
Now that dividends are back on a solid footing (albeit relatively stingey), share buy backs in full flow and we are generating good profits again, once Treasury goes sub 50%, things will quickly start to gain momentum with SP increasing as institutions start buying again and Treasury dumping faster, classic flywheel.
I can see a very realistic target price of 320p by end of 2022.