After the recent dip in the price of Cenrtica (CNA) due to the UK governments intention to bring in an energy cap in 2018. This stock could be just what investors are looking for in 2018. with a price/book of of £3.07 and a share price today trading at £1.43 this stock looks a bargain. for those investors looking for a nice high divided yield of 8%. it looks to me that Centrica is well worth the risk. i also feel that the UK prime minister Theresa Mays energy cap plans could well be on shaky ground as i feel she will not be in power long enough in 2018 to implement her price cap plan in the UK energy market. usually conservative governments are reluctant to interfere in an UK domestic markets. with that in mind. any new incoming conservative leader could well scrap this energy cap plan. which could see centrica's share price rocket in 2018. for those who like a gamble and are prepared to pick up a 8% dividend yield in the mean time. this stock could be for you. As the Guru King Investor warren buffett said.
“Be Fearful When Others Are Greedy and Greedy When Others Are Fearful” going against the tide can sometimes reap the Greatest rewards. i honestly can not see centrica folding. something says to me this stock will recover. my investor's instinct tells me to buy now. so that i can be sat on a big pile of cash in the future. who dares wins.
Tough times for
utilities
Elsewhere in the sector, National
Grid (LSE: NG) is trading on a forecast yield of 5.2%, Pennon (LSE: PNN) 4.9%, and
British Gas owner Centrica
(LSE: CNA) 8.6%.
Disclaimer: This is not financial advice. the information here is for entertainment and educational purposes only.
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