Stockchase Opinions

Kevin O'Leary National Grid PLC NGG-N PAST TOP PICK Nov 04, 2008

(A Top Pick Aug 25/08. Down 13%.) Likes the name, but found better value elsewhere. Sold his holdings in October.
$60.080

Stock price when the opinion was issued

electrical utilities
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TOP PICK
Long-term hold. 5.1% yield. This is a utility that is growing in the UK. Likes the infrastructure theme.
PAST TOP PICK
(Top Pick Aug 25/2008, Down 5%) Large, Stable, Utility Infrastructure is a good place to hide. Not worried about much more downside. Is a buy.
PAST TOP PICK
(A Top Pick Aug 25/08. Down 32%.) Still likes but there are better players. When management announced they were not going to hit their numbers, he exited the position.
PAST TOP PICK
(A Top Pick Aug 25/08. Down 41.2%.) Didn't like it because it was piling on the debt and had to refinance.
BUY
Electrical utilities. Great stock. Outperformed its sector and its European peers. 6% yield and trades at about 14-15 times earnings.
HOLD

The British national electricity grid group. There was a big run-up in the middle of the year. All of the UK in electric utilities is a relatively safe place to be because they have a fairly transparent regulatory regime. The difficulty is that, especially with the government in the UK saying they want to introduce lots of renewable such as wind, etc. and, at the same time not pushing forward with gas stations, reliability of supply is an issue. At the moment it is not exposed to a weaker northern English economy. Reasonable yield.

COMMENT

This has been a problem for all UK utilities. The regulatory regime, whether for generators, distributors, etc., has been getting tougher and tougher. With the present uncertain state of UK politics, there is a possibility that Labour might be the next government, and this could get nationalized at a price well below what it is trading at now. You have to make up your mind whether BREXIT is going to be disastrous for the Conservative party or not. If you are uncertain, you might want to get out of this and come back when things are clearer.

COMMENT

Looking for a renewable energy play A UK utility building EV-charging stations. There are few pure-play EV-station stocks in North American, because it's early days in this fragmented industry and there's no universal standard. Instead, there are renewable energy plays in the US, namely NextEra.