Contact Energy - CEN Chart

[macduffy]

Hows this for wild speculation macduffy CEN buys ORG geothermal prospects???

Perhaps. And I suppose ORG could dress it up with "expert" valuations to make it a good deal for CEN! Minority NZ shareholders wouldn't like it - but then, we're minority shareholders. Let's hope it doesn't happen!

[PSE]

If we hear noises like this it is corruption shareholders should oppose it. It would only take a little daylight to expose it, if the directors were to try it they would put themselves in a vulnerable position.
The large institutions will I think back a call to see a business case and as a large listed company there is a lot minority holders can do to defend their interests.

[iceman]

A good summary by Patrick Smellie http://www.stuff.co.nz/business/opin...manager-foiled

[PSE]

Nice article iceman.
In the last line - I would translate as no prospect of material growth in NZ means they are taking speculative opportunities at the bidding of a majority shareholder who has already wasted money on the Origin SAP pilot rollout and Rockgas takeover.
So the company has a low profitability on assets employed, low growth prospects and is asking shareholders to take a punt with their cash on geothermal development (after paying consultants to cock up te mihi) in third world countries without providing a business case.
Shareholders should get their cash back, they can definately manage their money better than this lot. Both the capital in plant and the cash.
I am not holding any of the gentailers anymore, all too expensive - capital better employed elsewhere.

[PSE]

A different bunch of consultants for each power station too, LOL.

[IAK]

More comment from Chris Adams. What a joke.

http://www.nzherald.co.nz/business/n...ectid=11404818

[huxley]

http://m.nzherald.co.nz/business/new...ectid=11405372

Interesting reading.

[Harvey Specter]

The independant directors really are on notice. That's if they are truely independant and don't just panda to Origin to maintain their cushy fees.

[Snoopy]

http://m.nzherald.co.nz/business/new...ectid=11405372

Interesting reading.

I own both Contact Energy (CEN) and Mighty River Power (MRP) because I like the exposure to NZ geothermal energy that both have. MRP have wound back their overseas exposure to geothermal, where as Contact are on the point of ramping it up. Personally I see it as a good thing that NZ can sell their geothermal power development experience overseas.

I have an income bias in my share portfolio, but am happy to look at growth opportunities when they are priced right. I will make a note to myself to look at what Origin are doing in Indonesia. But if a business case can be made, I am not at all averse to Contact going in there. For those who don't like it, sell CEN and buy MRP. For those who do, just stay with Contact. The choice is there. And as an investor you don't even have to make the choice if you don't want to. Just own both like I do, if you believe both strategies can work.

SNOOPY

[fish]

Snoopy I own a lot of cen and GEN-I have a margin loan that enables me to have over 100,000 of both.
At one time I owned a lot of TTP-they acted against the interests of minor shareholders knocking the SP-then they made a takeover offer that was inadequate.
A group of us on sharetrader objected and took them to arbitration-they lost.
They appealed-and lost in the high court having to pay costs and a fair price.
A great victory for NZ shareholders.
I am not a lawyer but I suspect if CEN buys overvalued assets from ORIGIN that entails total spending overseas of 1 billion there will be legal remedies which I for one will be seeking.
I suspect there are a few lawyers on this thread that could share their knowledge.