We would love to hear your thoughts about our site and services, please take our survey here.
Https://www.ig.com/uk/help-and-support/spread-betting-and-cfds/products-markets-and-trading-hours/how-do-dividend-adjustments-affect-my-spread-betting-of-cfd-posi
The cowboy market economy need I say anything more.
I must admit I am old school and stick to share dealing only. Anything else is high risk imho. Are you suggesting they are buying purely to offer spreadbetting options for their clients? They do offer nominee services as well. How would you distinguish the difference for their reasons in holding?
Shareholder|Report date|Holding|Change|% Held
The Vanguard Group, Inc.|Mar 5, 2024|189.1m|1.1m|3.54
BlackRock Institutional Trust Company|Mar 14, 2024|141.5m|425.0k|2.65
Columbia Threadneedle Investments (UK)|Mar 5, 2024|137.0m|-73.2m|2.56
Redwheel|Mar 5, 2024|126.3m|-4.7m|2.36
Jupiter Asset Management Ltd.|Mar 5, 2024|116.7m|172.6k|2.18
Acadian Asset Management LLC|Mar 14, 2024|98.1m|4.6m|1.83
Norges Bank Investment Management (NBIM)|Mar 14, 2024|84.1m|-859.3k|1.57
I feel I need to qualify my calc @sakura since it is slightly more than my expected figure I provided as I had excluded the buy backs from the previous shares in issue for the first dividend distribution. but $50M for dividends for 2023 was previously stated. Pound is forecasted to get stronger over the next quarter so at the end of day what arrives in your account will probably remain the same. then there is the 25% WHT to erode the income further. I think share price will remain the same territory until the move is complete but I do hope I am wrong. No mention of any further buybacks either.
No surprise I could tell you were shorter. Most have the usual signs of uninformed negative sentiment ignoring value even if it smacked them in the face. For example "Having sold their oil portfolio it makes it even less attractive. " And that is just more nonsense I'm afraid to mention. CNA have already outlined their strategy on this point in line with an industry trend (SSE are doing the same) to move to greener energy upstream.
"In line with our strategy to decarbonise the portfolio and reduce our exposure to oil and gas production, we have committed not to explore for new hydrocarbon reserves, instead focusing on ensuring we can fund our decommissioning liabilities while pursuing opportunities to leverage existing infrastructure to promo energy security and help the UK on its path to net zero."
But they continue to hold oil in storage and they reported 45M barrels of stock during 2023 annual report. If you want to trade oil my advice would be trade Shell/BP like I currently doing quite well on also.
All the best with your cash holding and I hope you've beaten the inflation target for the financial year plus some. Its been a great interaction as it has helped me to reinforce my view of value at these levels for a long term investment.
2023 was a bumper year and as stated in the report wrt future earnings "We expect to deliver around £800m of sustainable adjusted operating profit on average each year from Retail and Optimisation by 2026, underpinned by continuous improvement in operational performance which will drive customer retention and growth. We also expect to deliver further strong cash flows from Infrastructure over the medium-term."
This ties in with the broker forecast that I've seen for expected eps 2024E and 2025E but notably excludes the buybacks. Even at today's share price the p/e would be roughly 7x and far short of the 30x SSE trade at today. But we'll learn more during half year results as to whether they revise 2024E earnings and increase in dividend progressing to the 2x cover (currently it is 4x) as promised. Also they didn't ruled out further capital returns via buybacks. To me this is key to a full share price recovery. Its not that long ago Centrica were a recovery play and shareholders lost faith due to expected earnings consistency and the "Conn" man at the helm.
On your "Multiples" point I think I answered that already. But to add do you think if someone was sniffing to buy CNA they would pay todays price?
When SSE traded at 1600p which (30x eps reported in 2023) RBC cut SSE's share price from 2,050p to 1,950p and reiterated its "outperform" (August 2023). A 20% uplift on today's SSE share price. Yet CNA which trades at 2x eps reported in 2023 results has been downgraded to a "perform" and strangely upgraded their share price recommendation by only 3%. I am merely pointing out the 'R'oyal 'B'rokerage of 'C'lowns don't know their a*se from their elbow. I hope you don't pay for their advice Delta.
I have so many questions - Isnt their upstream strategy aligned with industry and political goals to move to a greener agenda? Arent they investing 800M in in this area? "Fossil fuels" are here for the foreseeable future and that outlook wont change short term since greener energy will take time, money and a change of customer attitudes. So why investing in gas storage (when energy security is a political topic) is not a good bet? When you talk of growing the business shouldn't that focus be on numbers of retail customers are sustainable? Energy provided by top 6 suppliers is 70% and of that market British gas have the lion share of 20%. Most end customers are still focussed on price and consistency of energy supply not how it is sourced.
Some stats for you in the meantime:
https://www.uswitch.com/gas-electricity/studies/energy-statistics/