ShareProphets


The one stop source for breaking news, expert analysis, and podcasts on fast-moving AIM and LSE listed shares


Join ShareProphets at less than 2p per article

> All the big AIM fraud exposés

> 300 articles and podcasts a month

> Hot share tips

> Original investigations by our experienced team

> No ads, no click-bait, no auto-play videos

Find out more

Here's a Sparky Electric Company that Should Not Cause Any Brexit Shocks

By Malcolm Stacey | Monday 24 December 2018


Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.


Hello, Share Jinglers. What shares should we look at now as our break from Europe gets ever nearer? One suggestion of a big enterprise that should not be affected by the big change, whichever way it goes, is the National Grid (NG.).

Whatever happens, we will still need loads of power in this country. The rise of technology will make sure of that. Once I had a single electric socket in my study. Now I have a dozen. That is happening everywhere. And the rise in renewable energy will not be able to cope. Especially when electric cars become the norm.

The Grid also does a lot of business in the USA. It supplies 20 million folks in the northeast of the country. So any trouble in Europe won't cause problems there. In Britain, the Grid has 4,474 miles of overhead power lines. And nearly another 1000 miles underground.

Yet I have to say that over the years this near monopoly has not performed well for me. The money I put in 15 years ago has not grown that much. Though the dividends have been handy. But this has the trappings of a reliable share in unreliable times. The Grid can hardly be troubled by that big menace to other large companies - the sheer strength of tough competition. And while the big energy supply companies are threatened by smaller outfits prepared to charge less, the tiddlers will also have to be customers of the Grid.

If you’re still worried about the Grid falling behind as renewable energy from wind farms and power from the sun gets a stronger hold on British supply, well, perhaps you shouldn't be. Grid boffins are very mindful of technological change and are preparing to adapt to it. So not a company that may see huge rises in its share price. But one which may keep your investment running fairly safely at a reasonable pace.

And now please join me at the Punter’s Return Christmas party.


Filed under:


Never miss a story.




This area of the ShareProphets.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ShareProphets.com. ShareProphets.com does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ShareProphets.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ShareProphets.com and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.


More on NG


Comments

Comments are turned off for this article.


Site by Everywhen