Mighty River Power vs Meridian Energy

[Master98]

Let me start this thread to compare this two company, currently I own shares in Mighty River Power, but not sure if I should buy into Meridian Energy float. any ideas will be welcome. cheers

[blackcap]

Let me start this thread to compare this two company, currently I own shares in Mighty River Power, but not sure if I should buy into Meridian Energy float. any ideas will be welcome. cheers

It all depends on your motivations. If you are looking at a stag.... go right ahead and be prepared to accept the consequences either way. But if you are looking at a long term investment you need to ask yourself "why Meridian"? You already have MRP and by putting Meridian in your portfolio the weighting may be skewed too much in one industry. If MRP is your only other equity investment I would seriously look at not buying Meridian. My brother who is not an equity investor bought MRP for a stag but has held on... he cannot bear to sell at a loss. His argument is... they pay a good dividend and will go up over time. But he conveniently forgets the opportunity cost of other shares that are performing better.

[CJ]

You should also ad CEN and TPW - all in the same sector.

Can't really comment on Meridian till we know the price/yeild.