Centrica Finals.

[blobby]

I rule out CNA but not because it has a high yield but because its history of cutting. Back in the summer CNA was on about 7% and CTY about 4% they would have come under that twice CTY guideline but I'd not consider them because they cut. Back in 2015 CNA was on 5% with CTY about 4%, in fact regardless of the multiple between CTY and CNA it has not been a buy for years as IDP said. I still hold.

kempiejon, I think you are spot on with this. The case against Centrica is not about the high yield, which is just market opinion, it is about the HYP principles which should point in the right direction.

[Dod101]

So Dod you agree that ruling out high yield companies not part of the official strategy. It’s just something that you personally believe but not part of the HYP approach which is essentially contrarian in nature. You are consciously (or subconsciously) following the market in your approach and as a result you will resist the natural contrarian approach of HYP.

I have never been a follower of the 'official strategy' whatever that means. Did not know that there is one actually.

Ruling out very high yields is something I do because I am conservative by nature and I have seen too many cuts preceded by very high yields to put myself in harms way if I can avoid it. Another way of saying that is that I am not anxious enough for income to squeeze every extra bit that I can get. I have avoided cutters or any real problems since Centrica cut back in 2014 or 2015. I sold Centrica in December 2015 at £2.122. It has not had a very good record since then.

Good luck to you. It sounds as if you may need it.

Dod

[idpickering]

This from TMF;

Is it time to buy Centrica after 10% share price crash?

Long-suffering Centrica (LSE: CNA) shareholders were hit by a further blow on Thursday morning, seeing the price of their shares slump 12.5%.

The British Gas owner warned its 2019 performance will be hit by the energy price cap, saying: “We have been very clear that we do not believe a price cap is a sustainable solution for the market,” and telling us it’s striving to maintain a sustainable business in the face of that hurdle.

When I last looked at Centrica, I was cautiously optimistic over what I saw as signs the business could be getting past its worst, but I did stress that “I want to see 2018 results first.” I’m glad I waited.

The results themselves were reasonable, with adjusted EBITDA up 15% and operating cashflow up 9%. Adjusted EPS came in 10% lower than 2017, which was pretty much in line with analysts’ expectations.

https://www.fool.co.uk/investing/2019/0 ... ice-crash/

[Arborbridge]

I have never been a follower of the 'official strategy' whatever that means. Did not know that there is one actually.

Ruling out very high yields is something I do because I am conservative by nature and I have seen too many cuts preceded by very high yields to put myself in harms way if I can avoid it. Another way of saying that is that I am not anxious enough for income to squeeze every extra bit that I can get. I have avoided cutters or any real problems since Centrica cut back in 2014 or 2015. I sold Centrica in December 2015 at £2.122. It has not had a very good record since then.


Dod

Come on Dod in the time you have been on the board, have you never - even just out of curiosity - browsed Pyad's original articles? or even gleaned the essential parts of his "official strategy" from reading the board?

Anyhow, I can't argue with your conclusions, and if one has enough capital so that striving for maximum yield isn't necessary I do agree with you - it is probably less risky to throttle back a bit.

Arb