Power shares

[iceman]

Is it that, or is it that the market is saying that other sectors will be hit even harder?

I think you have hit the nail on the head. This is as safe a sector as one can be invested in at the moment and will be one of the first to come out of this economic slump

[trader_jackson]

I think you have hit the nail on the head. This is as safe a sector as one can be invested in at the moment and will be one of the first to come out of this economic slump

I would think in this market, with the banks offering term deposits only a percent or two lower than what is being offered by some of the power co's, there would be no shifting of allocation, and rather a pull out all together (to cash)... especially given the power co's dividends are certainly under threat.

[Waikaka]

So generally accepted that the gentailers are bit of safe haven.

Yes they will get a demand hit, have Tiwai uncertainty, and electricity demand will broadly track down with the economy but pretty safe. Just wondering which is the cream of the crop.

I hold TPW and MEL but are the the best value at this time?

Which ones are cheap?
TPW P/E = 27.4
CEN P/E = 32.2
MCY P/E = 38.7
MEL P/E = 41
GEN P/E = 47.8

Dividends matter as everyone is doing some belt tightening:
CEN = 6.2%
GEN = 5.9%
TPW = 5.2%
MEL = 4%
MCY = 3.4%

None have terrible debt (TPW and GEN) are the worst so no need for stats.

I generally don't read to closely into analysts opinion but utilities I think they do a great job crunching the numbers. Just wondering about a way to display, decided on my brokers target price minus current price. So positive value is a discount to where they think it should be and negative value means current price is above the target.

TPW = -$1.38
GEN =-$.2
MCY =$.2
MEL = $.27
CEN =$1.54

Should I be thinking about adding a little CEN to my gentailer mix?

[iceman]

I would think in this market, with the banks offering term deposits only a percent or two lower than what is being offered by some of the power co's, there would be no shifting of allocation, and rather a pull out all together (to cash)... especially given the power co's dividends are certainly under threat.

Don't forget the printers are running flat out at the RB producing money for them to buy up as many Government (and corporate ?) bonds as possible. That takes out a significant chunk of available investments, puts money into Robinson's war chest who is then going to hire a helicopter to drop it over our 2 isles (hopefully some to Stewart and Chatham Islands too).

[Beagle]

No helicopter money for Chatham Islands as they're out of range for any helicopter to fly there This post just shows how bored I am. For goodness sake when are Rio going to make a decision on Tiwai Point ?

[stoploss]

No helicopter money for Chatham Islands as they're out of range for any helicopter to fly there This post just shows how bored I am. For goodness sake when are Rio going to make a decision on Tiwai Point ?

https://www.scoop.co.nz/stories/GE05...r-chathams.htm

[Beagle]

https://www.scoop.co.nz/stories/GE05...r-chathams.htm

Man that's cool. I never would have thought a Helicopter would have the range to get there. Apparently its 769 km's as the crow flies, just looked it up. I guess they fit auxiliary fuel tanks ?

[Simsee]

This from Chris Lee. Interesting snippet.
“Rio Tinto still describes Tiwai Point aluminium smelter as 'under review' even though they didn't deliver a decision within the time frame defined by them (to 31 March 2020).

What they have done though, in a formal release to the Australian Stock Exchange, is confirm that is maintaining its forecasts for production for alumina.

Presumably this reflects its current profitability because it plans to cut production of other minerals such as copper.“

[nztx]

This from Chris Lee. Interesting snippet.
“Rio Tinto still describes Tiwai Point aluminium smelter as 'under review' even though they didn't deliver a decision within the time frame defined by them (to 31 March 2020).

What they have done though, in a formal release to the Australian Stock Exchange, is confirm that is maintaining its forecasts for production for alumina.

Presumably this reflects its current profitability because it plans to cut production of other minerals such as copper.“

The Listed Power Co's supplying them must either be too busy elsewhere or outside the Loop, .. Maybe the Postman hasn't delivered yet ..

[Sideshow Bob]

The Listed Power Co's supplying them must either be too busy elsewhere or outside the Loop, .. Maybe the Postman hasn't delivered yet ..

MEL had a very strong close yesterday - finished up about 30 cents.....