UK 08:38 Saturday, 19 September 2026
Breaking news and expert analysis on fast-moving AIM and LSE listed shares
This is a company which is a dirty polluter and is only not bust thanks to the utter insanity of Sir Ed Davey, the leader of the Lib Dems from his time as a minister in the coalition Government. It is a scandal and one funded with £11 billion of your cash..
I have commented earlier today on NextEnergy Renewables (NREN). There is no question the UK grid has been under real stress this winter when the wind does not blow and the sun has set. The answer can only be gas fired stations in my view. Drax Group (DRX) is focused on Biomass power generation, but potential influence on gas fired generation worries me.
It looks as if the share price of Drax (DRX) - one of our big electrical energy power suppliers - has reached its three year trend support line. Indeed bounced off it just above 600p. The share price, having had its little bounce, is now 632p last seen. What fundamental grounds exist to support belief in that technical position?
There is nothing like equity investment for promoting a healthy sense of humility and reflection. In the case of power generator Drax Group (DRX), the humility comes from my being drawn to its long term attractions as an investment, as little time ago as a mere two weeks; the reflection consists of the painful reminder of the perfidy of weak government.
Having read that the Drax (DRX) CEO Dorothy, Carrington Thompson - I am attracted to people with double barrelled names – lives in London but works in Yorkshire, I thought it was time to have a look at this transforming power generating company again. I note that I last had a look at it in December, just days before the company yearend. Those results were published in late February. I liked the looks of the shares, which then stood at around 780p. They are now 737p (last seen) so I hasten to point out that they actually peaked 829p last January, but what now for this stock?
This stock offers attractive solid fundamentals and a lowly financially geared company potentially moving towards a position of capital surplus.
So that old fashioned (in scale) and very British (Yorkshire) non global business of supplying the 7% of the UK’s electricity has, as part of the price of converting half its highly efficient coal fired electricity generation capacity, to the generation of electric power from biomass - mainly imported, fast growing replaceable timber – is off the stock market's higher end dividend tariff. Before its results for last year to 31st December 2012, on a then share price of 609p, the published dividend yield for Drax (DRX) was 4.3%. That was then this is now.
