Making a Splash!

Northumbrian Water

Sell at 305p (this week's price 307p), notes Charles Stanley.

Company strategy is to maintain a focus on the core business of water and waste water. CS highlights that there is little prospect of further cash being returned since all the non-core assets have been sold and borrowing has been added to the balance sheet.

Following the strong share price on the back of corporate activity in the sector, CS considers the shares expensive. A negative investment stance is therefore being maintained