ngc - new high

[clearasmud]

wonder why sp is up again to $2.35 when eps is expected to be 10c in full year.
does anybody agree that the sp is over shooting.
(How) can the 8.5c interim divi be maintained?

[kiwi_on_OE]

FY forecast of $70m from memory. 440m shares, implies EPS of 16c. One of the chiefs made a comment about paying 80-90% of profit, so interim div corresponds and implies final of 6-7c.

PE and price seem a bit OTT given a suspect future. But on figures above it would be yielding 9%, so not so bad.

[clearasmud]

Thanks kiwi_on_oe NGC's half year report states eps at 7.1c , I took
this figure but it appears to be incorrect.:)

[KentBrockman]

Does anyone have a theory why this one keeps climbing? A PE of 24 (the Herald quotes it even higher at 36) is quite high for a utility, and growth prospects surely do not warrant a PE twice the sector?

Are the speculations that AGL has to dump this one in favour of CEN off the table??? But even that wouldn't explain the high price?

[good news]

Theory is that AGL will buy CEN 51% stake below market and sell NGC stake.. keen buyers for NGC include, Vector/Aust Pipeline and Alinta.. Breakup value of NGC $3 plus.. a good one for the corporate players as this thing will not be listed by end of year if AGL gets CEN stake

[willy_wonker]

The fact is you cant be short on energey stocks as they are going to consolidate through merger and acquisition.

Read my PWC thread.