Chasing yield, NZD is collapsing against USD (down over 1% today) I'd expect it to pass the $2.00 mark tomorrow to be honest.
Printable View
There had been talk about a possible Meridian contribution to the May(?) payback. Supposedly there is to be an announcement this month. Lets hope today's spike was caused by an information leak. I had intended selling about now in case there was a pre-payback price dip, and then buying in after the dust settles. If the announcement tags the contribution until after the payback date, then it might reduce the dip. I haven't yet thought this out clearly, but I'll be hanging on for a bit longer yet.
Then, if the Reserve Bank reduces the OCR as rumoured, the price could go higher still.
Where do you get your rumour????
Date 29 January 2015
Statement issued by Reserve Bank Governor Graeme Wheeler
"In the current circumstances, we expect to keep the OCR on hold for some time. Future interest rate adjustments, either up or down, will depend on the emerging flow of economic data."
link http://www.rbnz.govt.nz/news/2015/6006340.html
I think this comment is better from Wheeler
"In the current circumstances, we expect to keep the OCR on hold for some time. Future interest rate adjustments, either up or down, will depend on the emerging flow of economic data," he said.
Every owner of MELCA is required to pay 50 cents to the Crown. This will not be adjusted. If MEL decide to make a 'contribution' it would have to be in some other form. So there would be a two step process.
I think you're probably all right with your reasons for the further rise - a more balanced outlook for interest rates plus a possibility of a reduction generated by Wheeler's latest statement, and some firming of speculation around handing cash back to shareholders in whatever form that may take.
It may depend also on where inflows have come from and where they will go when the tide goes out. Has anyone data on percentage change in offshore holdings in MELCA and other large cap yield plays.
http://www.nzherald.co.nz/opinion/ne...ectid=11394962
Well, touched $2 now....
much better result than contacts, with nice div
YES re 19.2c in divs for the year!
Excellent results today, again. Total divi's and capital gain easily sufficient to cover the installment receipts, or put another way, have pretty much paid for the IPO, currently 82% to-date cap+div but not including this 1HY divi. Brilliant!
Refer Page 2 of the CEO/Chair report, sections "Installment Receipts" and "Capital Management" ... https://www.meridianenergy.co.nz/ass...ember-2014.pdf
Gotta love this company, what a great performer.
BAA
http://www.nzherald.co.nz/business/n...ectid=11404245
MELCA has always been my favorite of the generators, I've sold out entirely, I'll buy back in after the capital payment in May. Well done to all holders, fantastic result!