Contact Energy - CEN Chart

[Snoopy]

dear snoop...no offence intended...but how many folk on this planet can comprehend ...what you posted...you sir are taking the absolute...piss...Whats more I love it...honestly...I hate to admit this but I achieved a maths exam result (mid 70's) of about 18 %...(History about 80 %)...my arithmetic however was I believe second to none.
...Somehow I suspect you knew this already...........................................

cheers troy

PS...My future son in law....is currently working towards honours in maths/calculates (?) so indeed Sir your days may be truly numbered.

Dear Troy,

First of all I am impressed you posted such a coherent response post in the middle of the night. Yes I am well aware my reply to you was 'pointy headed', but after midnight is not the best of hours to allow such posts to sink in. Given your history exam result of 80%, I will take your recollection of your maths result of 18% as accurate. However, we are talking 30+ years ago here! Odds on the pointy head exam marker that gave you that 18% maths grade is now dead, so I would put all that out of your mind if I were you.

Given you have learned the lesson of compounding interest since then, as evidenced by your doing OK in the investment markets since, I hereby award you the 'Sharetrader Maths Certificate' for your prowess in mathematics in the real world. So as a now qualified mathematician, you will be in a good position to understand the less pointy headed version of my previous post.

1/ My complicated formula is really only a version of the compounding interest effect.
2/ The compounding interest effect doesn't work properly if you conveniently forget about extra money you put in along the way (as I did).
3/ The amount of compounding interest you get will be affected if you pull money out along the way (for example dividends).

If you understand those three statements, then you understand what I was getting at with my 'pointy head' formula.

SNOOPY

[winner69]

The one calculation that is correct is my average holding price of $4.73

Was that a time weighted average Snoopy?

[winner69]

So CEN ends the month at 480v....not just a 52 week low but the lowest monthly close for 10 years

Looks like 5 years up and then 5 years down. Pays to look at full cycles rather than the 5 year half cycles eh

One reason why I never found power companies that exciting .... never held

10 year chart from ft.com

[troyvdh]

Fair call Winner...if this was my only investment Id be possibly less than impressed...however I believe the return on my investment ..although not stellar..has been better than average...in addition ...I have spent so many happy family times in central...oh yes totally irrational I admit.

Bigger picture...don't we all love the term "Blue Chip"....cheers troy....none the I less continue to keep the faith.


PS keeping the faith paid of for Golden City..did it not....

[Snoopy]

Was that a time weighted average Snoopy?

My $4.73 average holding purchase price is not time weighted, no. I see at the close today I am sitting exactly half way between the $4.71 closing bid and $4.75 ask. All my capital profits from holding since 1998 gone! Ouch!

Of course my average holding time is not 15 years because I have gradually built my holding up over time. And I have had the benefit of a steady stream of dividends over the years too.

SNOOPY

[troyvdh]

Thanks Snoopy re your declaration...I have two comments...maybe 3

...Its my belief that CEN intend to increase the divs
...The "noise" emanating out of the "left' will not eventuate ...even considering the ghastly prospect of another "9 years of nothingless' endured by NZ in previous times.
...That clyde dam aint going to be built anywhere somewhere else soon....

[Snoopy]

I see at the close today I am sitting exactly half way between the $4.71 closing bid and $4.75 ask. All my capital profits from holding since 1998 gone! Ouch!

Banked another dividend in the interim, and now the share price is $5.73! Who cares about all those other power company floats? Looks like CEN was the horse to back after all!

SNOOPY

[fish]

Banked another dividend in the interim, and now the share price is $5.73! Who cares about all those other power company floats? Looks like CEN was the horse to back after all!

SNOOPY

Fully share your view.
Best balance of generation sources.
In best position to take advantage of north/south transmission upgrades
Massive gas storage
Targeting the Best customers-those that pay on time-domestic for the discount
industrial-for good large contracts
Best track record.
I completely sold out quite a few years ago when they hit $10 so couldn't resist buying lots at their lows last year.
Planning to hold onto what ive got for my retirement

[troyvdh]

Giday ...am considering selling a few CEN shares...I have been a quite an adamant supporter of this company for well over a decade...however it has finally dawned on me that CEN (and probably the rest of them) are probably destined to be only income companies (for the shareholders) only.Me thinks that any capital gain/benefit (I own bits of all of all of them) only occurs at the start or soon after (CEN $11.33)...I cannot imagine a scenario where one power company suddenly sprints ahead of the pack...given normal market circumstances...
I note that CEN is trading just above the 100 day average.
Am just looking for the best time to exit is all...cheers

Where is Phaedrus when you need him ?

[Winston001]

The importance of utility businesses is that they are fundamental for modern living and continue to operate through good times and bad. They are boring and predictable but also safe.

From a risk management point of view, companies like Contact are core holdings. By all means sell, there are always far more interesting businesses on the stock exchange such as Xero and...Rakcon.