Contact Energy - CEN Chart

[troyvdh]

Thankyou snoopy...I was thinking of posting something similar i.e. a comparison between CEN and MRP....but thought that folk would be doing the comparison...CEN ..what 3.8.B.....MRP ...3.2B....(I could be wrong).....yes there is some euthoria about MRP and probably quite rightfully so..but perhaps for the wrong reason...i.e prospect of instant gain...

..as i have said before I believe the cost to rebuild the Clyde dam would be about 2B....that is of course if they were allowed to....the same applies to any other entity planning on building another dam....any where..it will be interesting to see the details of the offer..and indeed comparisons made between CEN and MRP...

cheers troy

[CJ]

Yes perhaps my extrapolation was a little high. The point I was making was, Contact has a lot of hydro assets. In broad brush terms it is a very similar company to MRP. Of course we do not know the projected price for MRP yet. But if it were noticeably more than CEN in PE terms, because of the high demand for shares, would it make sense to invest in MRP? In the short term yes as all of those index funds would have to buy MRP share at any price. But six months down the track, would you as an MRP investor still be looking so clever?

SNOOPY

Untility stocks:
CEN/TPW P/e of about 17-18 (best comparable)
IFT/AIA P/e of about 22-24
TEL/CNU P/e of about 10-14 (regulated)

MRP - I would be looking at no more than 17-18 for long term investment. May still go for stag if more.

[troyvdh]

Cheers CJ..for some clarity....KISS has alot going for it....

[gv1]

Stock gone XD, ASB securites shows XD as of today but I have noticed price increase for this stock. Can someone please advise, what happens if stock sold today.

[iceman]

Stock gone XD, ASB securites shows XD as of today but I have noticed price increase for this stock. Can someone please advise, what happens if stock sold today.

It is XD and anyone selling now will still get the dividend

[gv1]

Thanks Iceman

[iceman]

But why would you want to sell this great utility stock, which is likely to increase dividend payouts in the very near future ?

[fish]

Nobody with any sense should sell at the moment .
I sold out 5 years ago at $10 and starting buying again in recent times -now my second biggest holding and currently buying so hoping it will become my biggest holding .
They have the best blend of generation and i believe this will be proven in the next few weeks-just watch wholesale power prices on witsfreetoair .
Mighty river power depends on waikato/taupo hydrogeneration and it just isnt going to happen to the normal extent for sometime-could be many months.They will be buying from contact on the wholesale market at prices 10 times plus last year.
But I wish somebody else could confirm-or refute my view

[gv1]

But why would you want to sell this great utility stock, which is likely to increase dividend payouts in the very near future ?

Just wanted to know, as the SP was accerlating when it was XD. Normally price drops, looked bit odd. ASB securites listed 6 March as XD and then listed 8 march as record date. Maybe made me ask some odd questions. Thanks !!

[CJ]

Nobody with any sense should sell at the moment .

Impossible to tell without the prospectus and price range but...

What effect will MRP have on the share price. Should we sell now and buy back in when the price drops as people cash out for the IPO.?