Article Abstract:
Centrica is a United Kingdom gas supplier which has seen a 100% rise in value in the year to Mar 1998. The company's stock price has dropped due to concern about the impact of mild weather on sales and lack of newsflow. Brokers tend to recommend the company's stocks due to the strength of cash generation and the possibility of a takeover. Panmure Gordon and Williams de Broe are buyers, while Robert Fleming is a strong holder. ABN Amro sees Centrica as undervalued though not to a great extent, while Nat West is in favor of accumulation to 1.23 pounds sterling. Greig Middleton, in contrast, is a seller.
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Article Abstract:
British Gas has been affected by public relations blunders, restructuring and the possible loss of its monopoly. Opinions of stock brokers are divided as to how the shares will perform in 1995. Panmure Gordon is positive and sees British Gas as able to achieve cost reduction targets. Nomura is concerned about the impact of increased competition, and would hold. SG Strauss Turnbull foresees a loss in market share for British Gas and is neutral. Charterhouse Tilney is the most concerned over the impact of competition on the company.
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Article Abstract:
British Gas is offering cash to stockholders who should fill in the relevant form in order to benefit. Stockholders will receive 'B' stocks if they do not request cash, and 'B' stocks are similar to deposit accounts with low interest rates. Investors could receive better rates of interest if they used some of the better deposit accounts. The cash payment will involve a capital gain, but most investors will find that this does not exceed their allowance for capital gains tax.
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