NWF - NZ Windfarms

[JAYAY]

Goodness me. That's a massive discount. Why even bother selling out for 6m? A bit strange. Good riddance to Vector anyway, they have done nothing for this company.

Can anyone explain why they would sell up at 10c when the market price was up over 16c. Why flood the market instead of selling progressively at a higher price.

[fish]

Can anyone explain why they would sell up at 10c when the market price was up over 16c. Why flood the market instead of selling progressively at a higher price.

I dont know the reason
I do know that Vector could have some kind of insider or trade knowledge-there is a possibility that something doesnt bode well for NZ windfarms-I had been thinking of buying after I get some dividend payments from mercury-will reconsider doing so as now clearly a higher chance of losing capital

[blackcap]

I dont know the reason
I do know that Vector could have some kind of insider or trade knowledge-there is a possibility that something doesnt bode well for NZ windfarms-I had been thinking of buying after I get some dividend payments from mercury-will reconsider doing so as now clearly a higher chance of losing capital

I do not see how Vector have had any inside knowledge. Vector have had no board representation or even at executive level for the last year so I do not even count them as an insider. However I do think there may be some short term SP weakness as those that got shares at 10 cents look to lock in some profits. That is if the bids allow on Monday.

[black knat]

I bought some yesterday at 10c. Had to make a quick decision and haven't followed the company. Thinking I'll put them in the kids portfolio (long term investments) at this stage. I have no doubt others in my position will be selling out for a quick gain and in an illiquid market I think you will see the share price at 12c or lower until the backlog is cleared. Good opportunity until if you like the company.

Just another thing ... driving past Tekapo at the weekend it was as full as I have ever seen it with water spilling down the Tekapo river. Not sure what that means as don't really have a good understanding of the market at this point.... will have to get up to speed!

[JoeGrogan]

I do not see how Vector have had any inside knowledge. Vector have had no board representation or even at executive level for the last year so I do not even count them as an insider. However I do think there may be some short term SP weakness as those that got shares at 10 cents look to lock in some profits. That is if the bids allow on Monday.

i don't think they do either, and if they do it certainly conflicts with my industry information

[fish]

i don't think they do either, and if they do it certainly conflicts with my industry information

I just dont know why they would sell below market value-in fact a massive discount to the market.
Just thinking of possible reasons and not feeling comfortable with the ethics of some companies-eg apple

What is your industry information?
Shouldnt we all know about it?

[blackcap]

I just dont know why they would sell below market value-in fact a massive discount to the market.
Just thinking of possible reasons and not feeling comfortable with the ethics of some companies-eg apple

What is your industry information?
Shouldnt we all know about it?

For Vector this stake is a drop in the bucket. Vector did not announce anything to market themselves (ie we have sold our stake in...)

To sell such a large holding can sometimes mean you need to accept a discount to market price. 10 cents is probably what their broker told them they could liquidate at. If they wanted to sell on market with the amount of turnover that NWF has it would take them years. So they probably thought to hell with it and lets just do it all in 1 go. I do not have a problem with it and as a long term NWF holder I think this will be good for NWF in the long run.
Remember Vector did/does have egg on their faces with this holding in that all their representatives pretty much got booted off the board/voted out and their influence was made non existent.

[Poet]

For Vector this stake is a drop in the bucket. Vector did not announce anything to market themselves (ie we have sold our stake in...)

To sell such a large holding can sometimes mean you need to accept a discount to market price. 10 cents is probably what their broker told them they could liquidate at. If they wanted to sell on market with the amount of turnover that NWF has it would take them years. So they probably thought to hell with it and lets just do it all in 1 go. I do not have a problem with it and as a long term NWF holder I think this will be good for NWF in the long run.
Remember Vector did/does have egg on their faces with this holding in that all their representatives pretty much got booted off the board/voted out and their influence was made non existent.

All good points. I also think that Vector took the removal of their reps very personally (or at least those reps themselves seem to have). What other reason would they have had for voting against last year's proposal to buy out the onerous powerco lease?
I picked up some more yesterday at 10c in the selldown but don't mind declaring here that I would have paid more (and bought more) than I did had I been offered the opportunity. I think that Vector wasn't really trying to maximise their price but probably rather got more satisfaction from seeing the effect of dropping their shares cheaply (since the vector decision makers weren't playing with their own money at the end of the day, why not have some fun and extract a little bit of utu at the same time).

I'm of the opinion that most, if not all, of the previous problems that besieged NWF were directly attributable to the litigiousness and arrogance of the previous board and management. It doesn't surprise me that given those same personality flaws and overblown egos are still in control at Vector, we see these bizarre decisions.

Good riddance I say.

[BlackPeter]

All good points. I also think that Vector took the removal of their reps very personally (or at least those reps themselves seem to have). What other reason would they have had for voting against last year's proposal to buy out the onerous powerco lease?
I picked up some more yesterday at 10c in the selldown but don't mind declaring here that I would have paid more (and bought more) than I did had I been offered the opportunity. I think that Vector wasn't really trying to maximise their price but probably rather got more satisfaction from seeing the effect of dropping their shares cheaply (since the vector decision makers weren't playing with their own money at the end of the day, why not have some fun and extract a little bit of utu at the same time).

I'm of the opinion that most, if not all, of the previous problems that besieged NWF were directly attributable to the litigiousness and arrogance of the previous board and management. It doesn't surprise me that given those same personality flaws and overblown egos are still in control at Vector, we see these bizarre decisions.

Good riddance I say.

Couldn't agree more. I never really understood what Vectors play was with NWF. Sure, once upon a time (more than a decade ago) they added money when the company needed it. This is how they ended up with their oversized cornerstone shareholding. Maybe they wanted to start a Gentailer business or something like that? But then came the electricity reform and they couldn't ....

However - since adding money they never made anything out of NWF but a mess. They dropped (in my view) unsuitable Vector people both into board as well as into management and used NWF for a long time to extract both trading as well as hosting fees (though I can't really imagine that this was their driver ... peanuts for Vector).

And yes - "arrogant" is a quite good way to describe the attitude of (Ex-)Vector key people, resulting not just in endless litigation with neighbors in windy Palmerston. The NWF CEO had an office rented on Vector premises in Auckland and tried to remote control a site manager in Palmerston North who himself controlled a handful of technicians. This was the company. Inefficient like hell but in all important positions Vector (or ex-Vector) people.

Vector was in this case an excellent example for a cornerstone shareholders with a negative impact. NWF will be better off without them.

Discl: Ex shareholder (and at times quite engaged with board and other shareholders);

[Well Endowed]

looks like a bit more uncertain selling today. I might have to transfer some money across for a topup, I still think NWF longterm +12mths is a no brainer.