I know that the mode for these threads tends to be smaller cap stocks but Pennon is looking so good at present I was interested to see if anyone else out there is holding or thinking of buying. The SP is on a fantastic run, it pays a nice fat dividend and even if the water regulators decision on prices was not what any of the water companies were looking for, Pennon is probably the least affected and the most favoured by analysts. Seems to me to be a winning combination!

Going Ex divi this week paying just under 3%-2.83p.

Stan - I have the dividend tomorrow as 19.70p ?

Yes sorry your right Skinny 19.70p or 2.83%.

Norges Bank increase holding http://www.moneyam.com/action/news/showArticle?id=4669740

Half Yearly Report

H1 2013/14 FINANCIAL AND CORPORATE HIGHLIGHTS

· Profit before tax(1) up 3.5% to £110.9m

- South West Water up 7.6% to £87.3m
- Viridor down 28.8% to £15.3m

· Viridor PBIT plus joint ventures down 15.8% to £23.4m

- Viridor PBIT plus joint ventures up 31% compared with H2 2012/13

· Adjusted earnings per share up 2.6% to 23.8p(1) (2) (3)

· Dividend

- Interim dividend per share up 7.2% to 9.39p

· Capital investment(4) up 9.0% to £205m

· Strong liquidity and funding position

- £210m facilities secured/renewed since 31 March 2013

- Total of £1,132m cash/committed facilities at 30 September 2013

· Pennon Group achieved top 10% position in FTSE350 Carbon Disclosure Project participants for quality of disclosure

GROUP OVERVIEW(1)

· Revenue up by 5.3% to £667.0m
· Operating profit up by 2.6% to £139.7m
· Net interest payable reduced by 5% to £29.6m
· Profit before tax up 3.5% to £110.9m
· Adjusted earnings per share up by 2.6% to 23.8p(2). Basic earnings per share increased from 25.4p to 29.4p

· Capital investment(3) up 9.0% to £205.1m
· Net borrowings £2,098m, an increase of £89m since 31 March 2013. Gearing, being net borrowings to (shareholders' funds plus net borrowings) was 65% (2012/13 - 65%). Net debt includes £549m for EfW plants under construction (Runcorn II, Exeter, Oxford, Cardiff and Glasgow)

· Substantial cash resources and committed facilities of £1,132m(4) to fund future investment - well placed in current financial market conditions

· South West Water net debt to RCV was 56.1% (31 March 2013 - 54.9%)

· Net interest cover (excluding pensions net interest, IFRIC 12 contract interest receivable and discount unwind on provisions) was 5.2 times (H1 2012/13 - 4.6 times)

· Average debt maturity 22 years

· Fair value of debt £261m less than book value

Ex-divi wed 29th Jan 2014 (9.39p)

Hoping for 700p before the divi date.

Hoping for 650p before divi date. :-)

Hmmmm......looks like you will get your wish skinny. Bloody shorters! ;o)

:-)

Well, you've had your run skinny, now it's my turn! 660p......more please.

Harry - I wasn't short - I was looking for an entry - which I have as of yesterday.

So I agree - more please.

Pushing ahead and not far off the 200 DMA. Might be confronted by the dilemma of taking profit pre-divi date.......hopefully!

"We (J P Morgan) retain our Overweight recommendation for PNN and our Neutral recommendation for UU, although we have reduced our price targets for both companies by 6.0% and 1.7% respectively to 700p and 735p."

I can live with that! :-)

What do you reckon skinny? A concerted push through the 200 DMA on the cards?

Yes - 680 looks quiet pivotal - like you , I'm unsure whether to hold for the dividend or trade it.

Divi isn't really that great, so if the sp gets close to 700p I will probably take profit. (hopefully before you cash in and move the sp!)

Nicely through the 200. Approaching decision time.

Goldman Sachs Neutral 688.50 684.00 - 758.00 Retains