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National Grid Plc. is an avoid at the current price. The stock has been nonstop falling for the past few weeks. The stock finished trading on the London stock exchange at 864p a share, up by 0.58% compared to the previous close.  Currently the stock has been trading below its 20 day moving average (DMA), 50 DMA and 100 DMA of 870p, 880p and 894p respectively. In terms of technical analysis or charting, it seems that the stock would continue to correct more and the downfall shall continue as the stock has been trading on the downward trend line. The momentum oscillators are also pointing out towards the weakness in the coming trading sessions. Therefore, we would advise traders or investors to avoid national grid for the time being.

Let’s throw some light on the half yearly 2018 results of the company. As per the results, the company reported the adjusted operating profit at £1,368m in H1’18 versus £ 1,318m in H1’17. The company’s capital investment has increased to £2bn for the first six months of the year, reflecting significant investment in developing and maintaining gas and electricity infrastructure. Also, the US regulated business continued to make good progress as well. (Read more)

Topics: Analysis
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Glencore is the leader of a consortium that, together with Qatar's global sovereign fund, Qia, bought a 19.5% stake in Rosneft, the Russian oil company. Rosneft is one of the leading Russian blue chip companies, and the flotation is part of a process to partially privatise the oil company, in a bid to reduce the debt level of the Russian state, hit by the twin storms of falling oil prices amid economic sanctions imposed following events in Crimea and Eastern Ukraine. News of the deal, worth 10.5 million Euros, was welcomed by investors, and sent the Russian stock price shooting up by over 5% on the Moscow stock exchange. (Read more)

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National Grid should be an avoid for the time being. The stock has had a massive fall in the past few months and it seems that the stock would take time to consolidate. The company announced its half yearly 2016-17 results, a few days back on 10th November. It seems that the latest results couldn’t cheer the investor’s sentiment on the D- street as the stock crashed by nearly 5%, the same day! We would throw a light on the results of the company in the later part of the article.

The stock finished trading on the London stock exchange at 898p a share on1st December. The stock has been trading below its 20 day moving average (DMA), 50 DMA and 100 DMA of 957p, 1023p and 1050p respectively.  A few days back, National Grid was trading between the channel of 928p-970p and yesterday it went below the channel too. Therefore, the bearishness would be expected to continue and the stock may head towards fresh lows also.  Another technical indicator ‘trend line’ also confirms the bearishness of the stock as the stock has been trading nonstop on the downward trend line only! Additionally, huge volumes have been seen indicating towards fresh short positions only. Hence, traders or investors shall completely avoid National Grid plc. for some time till we see any consolidation sign in the stock. (Read more)

Topics: Analysis
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National Grid Plc is a ‘Hold’ at current price levels and we see an upside of up to 5% from the current price levels. On 2nd June, the stock gapped down by 23.5 p on the bourses and crashed even more by 17.0 p same day and closed down at 960p. However, it seems that the utility giant has consolidated at 960 p and is now seen trading in the channel of 974p-987p in the coming trading sessions. The stock finished trading on London Stock exchange at 980 pence on 7th June. Currently the stock has been trading below its 20 DMA and 50 DMA of 993p and 990 p respectively.  The immediate resistance for the stock would be its 20 DMA and 50 DMA respectively. If the stock manages to break the resistance levels, it may test the levels of 1010 p again. Therefore, traders and investors shall keep an eye on these levels and trade with caution. In any case, if stock crashes again and even go below the last support zone of 960 p, it may make fresh lows as well. Technically, stock has been making ‘Doji’ patterns on the chart which indicates indecisiveness so a right direction and pattern may be seen in the coming days in National Grid Plc.

(Read more)

Topics: Analysis
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Posted by ShrutiAggarwal on 14 December 2015, 4:49 PM

Limited potential to rise

National grid plc is fairly priced at the current levels, with an upside of merely 10% from the current levels. The stock has shown a spectacular rally by rising over 66% in the last 5 years, but now it seems it would start consolidating at the current levels and might head for a correction. The stock finished trading on London stock exchange at 909 pence on Friday. Currently the stock is trading at 5% below its 52 Weeks high and 11% above its 52 weeks low. National Grid Plc is an electricity and gas utility company and has a market cap of £34.14Bn. The UK Electricity Transmission includes high voltage electricity transmission networks in Great Britain. Its UK Gas Transmission provides the gas transmission network in Great Britain and UK liquefied natural gas (LNG) storage activities. National Grid has a forward P/E of 15.13 which is slightly up compared to FTSE 100 P/E of 13.37. National Grid Plc has a trailing P/E of 15.88.

The company has five business segments namely: UK electricity transmission, UK gas transmission, UK gas distribution, US regulated and other activities. Out of all the segments, the group generates 46% of its revenue from US regulated and 29% from UK electricity transmission. The company generates over 85% of its revenue from US regulated and UK electricity transmission, therefore the US is one of the biggest markets for the company. However throwing light on the latest half year results of the company, the company continued delivering strong performance in the first half of the year. The company’s adjusted EPS was up by 22% in H1’2015 compared to a year ago. The capital investment was £1.9 bn in H1’2015, up by 17% compared to a year ago. Also it reported strong balance sheet and financial matrix in H1'2015. The company reported strong operating cash flow of £2.681bn in H1’15, up by £114 compared to H1’2014. The company is also undergoing some restructuring as the company is planning to sell its major stake in the UK gas distribution business. According to the management, post-sale, National Grid’s product portfolio will have a higher asset growth and the company would strengthen its foothold to deliver strong returns in the future. Also the UK gas distribution business is a mature business model with strong cash flows and attractive return on equity. Therefore the sale of UK gas distribution business would generate attractive returns to the shareholders. The proposed sale is likely to be completed by 2017. The company has also maintained a steady dividend yield of 5% in the historical years which is a feast for an income oriented investor. Also, National grid has outperformed, compared to its peers like Centrica Plc is worth 35% less than 5 years ago whereas national grid stock has risen by 66% in the last 5 years. Currently, the stock has a consensus rating of ‘Hold’ and a target price of 914 pence. (Read more)

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