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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Secondary Recommendation

Drax Group - Power station owner enjoying surge in electricity prices

March 2006

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • DRX
  • Price:
  • 614p
One of the knock-on effects of surging UK gas prices is that electricity prices have also soared, which is great news for power station owners such as the reconstituted British Energy, 594p, which has rocketed in recent months. And with power prices expected to stay high for at least the next two years, it’s hardly surprising that investors pounced on Drax Group, another electricity generator, whose shares have risen to a significant premium following their admission to the FTSE-100 last December. Drax’s sole power station was originally commissioned under the auspices of the old Central Electricity Generating Board to burn English coal mined from the nearby "super-pit" at Selby and with efficiency ratings s ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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