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Bought these back for 885p 30/9/21 after selling for same price 4/1/21 , I see from transactions not sure why .
Poster today pointed to value in nil paid at 225p
the Issue Price of 645 pence per New Share represents a 34.7% discount to the theoretical ex-rights price based on the closing middle-market price on 22 May 2024 (being the last business day before the announcement of the terms of the Rights Issue) of 1,127.5 pence per Share, adjusted for the recommended final dividend for FY24 of 39.12 pence per Share
The deadline appears to be around 12th June.
Placed an order to buy more rights at 9.50 am executing midday at 223p.
Those shares on 12th June will have cost me 868p , they are showing as 889.40 above , 897p with my broker.
Spread 0.045%
Paid stamp duty on the rights but will not on the take up.
Not sure if above 897p is pre ex div , 29p in the difference .
This gos ex div on 6th June, it will be 39.12p
Announcement was yesterday Thursday 7am , Monday is bank holiday.
They have raised near year high .
Share price has dropped as much today ( 11.5% ) as yesterday after going ex rights.
I anticpate taking up full rights but will leave it until the last minute in case of any stock market shenanigans. Remember BP October 1987 ;)
Ripley
The share price didn't drop 11.5% yesterday. The closing price on Friday, due to the effect of going ex rights, was effectively around 900 + ()(7/24) x 205 = 960, down from c.1013p closing on 23rd May. That is 5.2%. Not happy about it but no need to put a worse gloss on it than is necessary.
Thankyou johnpwh.
Short on time so rushing everything , I placed a buy order rushing out yesterday on the rights which executed after two hours .
Partly as spare cash on Acc.
Someone posted better value then the shares , not sure that is correct on look last night .
I only post trades never advise .
Hi Ripley
You post spurred me into action, thanks. I am not around much in the next 2 weeks so with funding headroom in my 2024/5 ISA i've just arranged - I am with iWeb and hadn't realised the corporate action would already be on there to accept. At least its out of the way, if Id not done it I may have forgotten! Reading the corporate action text it implied that if no action is taken it MIGHT (capitals deliberate, I think they are covering their backs) mean that the part paids lapse without any value. I think theoretically the broker is supposed to sell the rights if no instruction is received and a buyer can be found, but if I were in the position of being unable to take up the rights I would prefer not to take the risk.
Johnpwh
I would hope in this electronic age a broker would send a text or email to anyone a couple of days before the 12 th who had not given any instructions.
But seeming how some brokers game div reinvestment,maybe I am being naive.
I would hope so too, But I think one of the things about becoming an official old fogey is that you trust no one!
Just to make it clear I bought more rights Friday I have not taken them up yet .
Hi oldbutnowisa
I assume you meant to post you bought some rights Friday .
As I did but having had a look again think the shares might of been the better buy ?
The shares still entitled to the next div and rights are not, only 29p in the share price less then the 39p div ?
Hi , any thoughts on the tail -swallowing option ? Thanks
Thinking of doing the same or selling the rights.I’m in the older age bracket and had only just broken even with my holding on these shares..really bad timing for me unfortunately..sure it’s fine if in for the longer haul
Tail swallowing. IMOP yes if you are short of cash at the current time and can not otherwise by all your nil paids. Share price should bottom out well above 645p again imop to make it worthwhile. If it drops a bit further after divi I am likely to buy the story here. Looks good for autumn 2025 if you are on that time frame for returns.
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 .
I see it was Dimps5 at 9.01am and Ecologist at 9.10am with there math's Friday .
Makes more sense nothing in it, bar tax.
High volume traders might be able to skim when they see a little difference .
Mistake so far to buy Friday and following the bank holiday yesterday .
A further 1.5% fall by 9am today.
This might bounce back just as quickly .
Another Analyst giving view today there was 10p in it previously between yesterdays Royal Bank of Canada cut to 1,125p
UBS cuts National Grid price target to 1,115 (1,240) pence - 'buy'
Both above the average .
A summary here from ii:
https://www.ii.co.uk/analysis-commentary/national-grid-rights-issue-all-you-need-know-ii531810
Share price down 4.36% nil paid down 20%.
Tomorrows open should be interesting .
It has to bounce tomorrow as it did in Germany and USA
CEO should be sacked for this.
Realist1 - thanks for posting the II analysis. It is a very good summary of the situation and the quotes at the end from BoA give a good explanation as to why Mr Market is not too thrilled about the RI. Generally positive in tone though.
The similarities with the 2010 RI are there, and in real terms the size of the current is not hugely different from that in 2010. All worked out ok in 2010 after all the fuss then too.
"The similarities with the 2010 RI are there, and in real terms the size of the current is not hugely different from that in 2010"
Except their Net Debt appears to be increasing year on year. I could only go back as far as 2015/16 results on NG's historic results page, back in 2016 the Net Debt was £25.3bn.
"Net debt as at 31 March 2016 increased by £1.4bn to £25.3bn (2015: £23.9bn)"
https://www.nationalgrid.com/document/138546/download
I don't know what the Net Debt position was in 2010, but I suspect it was lower than 2015/16.
The forward debt on NG was £18.3B and pound was $1.48. 2010 annual report.
Fleccy - regulated industries can afford high levels of debt because of guaranteed income agreed with the regulators. And although the interest cover is over 2x, I do agree the debt level, and debt to equity ratio, is uncomfortably high. Shoring up the balance sheet by raising equity is sensible, although unwelcome, in my view.
The key to the future success of NG will be will be in the outcome of the Offom negotiations - and the ability to get a good deal will be critical. The negotiating skills of management is one of the main comptences regulated industry managers need. I suspect strengthening the balance sheet is part of the negotiating tactics.