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Thread: Power shares

  1. #1
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    Question Power shares

    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% !

  2. #2
    Member penn's Avatar
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    I know! Just asked the same question on the CEN thread.

  3. #3
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    Quote Originally Posted by penn View Post
    I know! Just asked the same question on the CEN thread.
    Just noticed that, what is going on surely they all cannot be shedding divs atm !

  4. #4
    ShareTrader Legend bull....'s Avatar
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    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
    one step ahead of the herd

  5. #5
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    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)

  6. #6
    Member penn's Avatar
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    I have never taken much notice of the Morningstar recommendations, but they have a big red SELL on MEL

  7. #7
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    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.

  8. #8
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    Quote Originally Posted by Tomtom View Post
    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.
    except for the 1000 direct employees and the thousands and many more down stream workers, say good by to the Southland economy along with the dairy industry re carbon credits, nice one Labour !

  9. #9
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    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

  10. #10
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    Quote Originally Posted by penn View Post
    I have never taken much notice of the Morningstar recommendations, but they have a big red SELL on MEL
    A rare day when I agree with tj and Morningstar at the same time. Lol

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