Games I know you like to run down NG, fair enough I think we would all like another buying opportunity around 780p, but I read into the results a different story. The biggest threat to NG is not a shallow business performance decline operations was maybe 4% off, but on positioning its defence against the loony left ideaology of a renationalisation grab at below market value.
Actually I think the chance is too remote of a Corbyn government, but the fear is again being factored in to all sorts of share prices today
To renationalise all the core utilities would be so cor blimey … NG, SSE, CNA, Severn Trent, UU, Pennon … all the privately or foreign held ones like Thames Water, NPower, EDF …
Add on the railways, RMG, BT, etc why not
Even on just a fundamental raw asset basis this would cost hundreds and hundreds of billions, in cash … no-one is going to exchange it for paper, govt bonds would not be worth printing after a raid like this … so the McDonnell plan fails completely at this point, even the unworldly children they are appealing to would see the flaws, apart from the extremely reckless champagne marxist thinkwits like Blakeley who behave like, since they (pretend) they have nothing to lose, destroying value would be a good thing
I do like greedy bosses and ripoff monopolists being frightened but only so far, thereafter NG and others need a defence. They probably have all this is hand, lots of clever plans
Part of the NG defence is to sink not just debt but equity into raising its capital asset value. That was the headline. Entering the political debate too, so far just words but if I was a utility or one of their major investors I would be directing my party funding accordingly. And then how about stepping away from UK jurisdiction if not the whole company then parts which can be ring fenced from a grab … put McDonnell plans at the risk of tangling with international law, an isolationist UK could not face up to the EU or the USA for risk of being bankrupted by them … we would be set upon like Venezuela