Company in the news: Drax

Shares in Britain's biggest coal-fired power station, Drax, have fallen out of favour, says Phil Oakley.

Shares in the UK's biggest coal-fired power station, Drax (LSE: DRX), tumbled by 13% last week. They had been quite popular up until then.

Investors seemed to like the company's plans to convert three of its six power generating units from burning coal to biomass products, such as wood pellets. With lots of old coal power stations closing soon, Drax is well placed to make more money as Britain's generating capacity becomes scarcer.

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Phil spent 13 years as an investment analyst for both stockbroking and fund management companies.

 

After graduating with a MSc in International Banking, Economics & Finance from Liverpool Business School in 1996, Phil went to work for BWD Rensburg, a Liverpool based investment manager. In 2001, he joined ABN AMRO as a transport analyst. After a brief spell as a food retail analyst, he spent five years with ABN's very successful UK Smaller Companies team where he covered engineering, transport and support services stocks.

 

In 2007, Phil joined Halbis Capital Management as a European equities analyst. He began writing for MoneyWeek in 2010.