With the NZX down 246 points or 2.2% atm and power company shares in particular whatsup ?
Contact down 9.7%
Genesis down 4.9%
Mercury down 8%
Meridian down 8.2% !
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With the NZX down 246 points or 2.2% atm and power company shares in particular whatsup ?
Contact down 9.7%
Genesis down 4.9%
Mercury down 8%
Meridian down 8.2% !
I know! Just asked the same question on the CEN thread.
in case you missed it
Owners of Tiwai Pt aluminium smelter seek talks with the Government, raising possibility of closure
https://www.nzherald.co.nz/business/...ectid=12278907
thats why all the gentailers are crashing
https://www.stuff.co.nz/business/116...elter-in-bluff
This is whats up - would dramatically cut revenues/cashflows
Even a 'renegotiation' (best case scenario) could cause revenues/cashflows to stagnate = dividends no longer expecting to increase at or above inflation (and possibly even decrease) = very, very bad for companies that are valued basically off being a dividend payer (as they are overvalued to ridiculously overvalued, depending on the gentailer, on any other metric other than yield)
I have never taken much notice of the Morningstar recommendations, but they have a big red SELL on MEL
They've had a long run of good performance so I'm not that worried about some adjustment to valuations.
I'm more concerned about local economic factors like long running under-target CPI, low business confidence, low impact fiscal policy and RBNZ not having many bullets left. Tiwai alone isn't a high impact event but the cumulative pressure may cause a downturn.
Rio Tinto having a go again can’t blame them with JK chucking them cash a few years ago. The reality is closing the smelter would cost a load and it’s still profitable at these prices
Tiwai comes up every few years - it always gets sorted
No need to worry ...or panic.
Fairly certain unless they bought in the last few months they would still be laughing all the way to the bank let’s see how the shares trade going forward ....
Good to see some common sense from a well respected institution https://www.harbourasset.co.nz/resea...smelting-away/
International investors looking for a good deal regarding CEN SP. Currently well below last GS TP $8.40 (AUG)
CEN or MCY possible inclusion into Sept MCSI index replacing FBU ...........??
"Contact is currently presenting to international investors in Singapore, Tokyo, Frankfurt, Zurich, London, Boston and New York. This presentation has been re-issued with minor changes to pages 22 and 41 to provide clarity around the calculation definitions and added the source references to information presented."