NZSX50 - Good News!

[bull....]

gentailers on fire except gne by the look of things opportunity for catchup play? ... get your income why you can. in other news lol grant robinson is going to be on bloomberg tv soon , wonder if hes trying to calm traders down after the talk yesterday?

[sb9]

gentailers on fire except gne by the look of things opportunity for catchup play? ... get your income why you can. in other news lol grant robinson is going to be on bloomberg tv soon , wonder if hes trying to calm traders down after the talk yesterday?

CEN seem to be pick of gentailers at the moment, recovered full divvy plus some gains. And ZEL isn't looking too shabby either after getting close to $6 recently after Comcom report.

[bull....]

CEN seem to be pick of gentailers at the moment, recovered full divvy plus some gains. And ZEL isn't looking too shabby either after getting close to $6 recently after Comcom report.

as of yesterday mel up 49% this yr , cen 46% , mcy 43% , gne at 32% and tpw at 26% are the laggards. So the question one has to ask themselves is gne and tpw both lagging in stock performance and with greater yields than the others got more room to run? since they havnt reall y taken part in the most recent run

[sb9]

as of yesterday mel up 49% this yr , cen 46% , mcy 43% , gne at 32% and tpw at 26% are the laggards. So the question one has to ask themselves is gne and tpw both lagging in stock performance and with greater yields than the others got more room to run? since they havnt reall y taken part in the most recent run

Big buy up into close on all gentailers...man this is unreal.

[bull....]

Big buy up into close on all gentailers...man this is unreal.

unreal because who thought gentailers could lead a bull maket. but perfectly understandable in the context of zero rates available overseas and quite possibly coming to NZ. if NZ does go negative rates even the yields of gentailers now will look very good in hindsight.

[bull....]

Dow jones utilities in US hitting new highs

heres a interesting read

Morgan Stanley: Investors should short growth stocks, get defensive as ‘recession fears emerge’


https://www.cnbc.com/2019/09/03/morg...rs-emerge.html

At the end of a growth scare when recession fears emerge, secular growth stocks typically underperform defensives,” Wilson says

Also on a side note US 10yr hitting new lows today not dfar from all time lows now and NZ 10yr hitting fresh lows as are swap rates

[winner69]

unreal because who thought gentailers could lead a bull maket. but perfectly understandable in the context of zero rates available overseas and quite possibly coming to NZ. if NZ does go negative rates even the yields of gentailers now will look very good in hindsight.

Man on radio this am said a couple of NZ gentailers going to get included in global indices ...drove the big buy up yesterday he said

[bull....]

Man on radio this am said a couple of NZ gentailers going to get included in global indices ...drove the big buy up yesterday he said

how about because they cheap?

On a dividend discount model which seems appropriate considering everyone wants dividends at the moment

approx values

at a 4% discount rate implies values of

mcy $3.95
mel $4.98
cen $10.01
gne $4.36

on a 3% discount rate

mcy $5.10
mel $6.42
cen $12.91
gne $5.63

on a 2% discount rate

mcy $6.96
mel $8.77
cen $17.63
gne $7.68

think ya get the idea the lower the discount rate goes ( being like say 10yr nz govt bond is actually 1%) the more valuable gentailer dividends become and hence the share price becomes more valuable for the income stream. sort of explains the insatable demand for these cheap stocks in this environment.

depends on your inputs of course but discount rate is a major part of most valuations

[BlackPeter]

how about because they cheap?

On a dividend discount model which seems appropriate considering everyone wants dividends at the moment

approx values

at a 4% discount rate implies values of

mcy $3.95
mel $4.98
cen $10.01
gne $4.36

on a 3% discount rate

mcy $5.10
mel $6.42
cen $12.91
gne $5.63

on a 2% discount rate

mcy $6.96
mel $8.77
cen $17.63
gne $7.68

think ya get the idea the lower the discount rate goes ( being like say 10yr nz govt bond is actually 1%) the more valuable gentailer dividends become and hence the share price becomes more valuable for the income stream. sort of explains the insatable demand for these cheap stocks in this environment.

depends on your inputs of course but discount rate is a major part of most valuations

Interesting numbers, though obviously - international investors would need to take as well the exchange rate risk into consideration. If times get tough, the NZD might drop like a stone vs major currencies ... which sort of screws up all of the above valuations.

[winner69]

Proof that analysts / wealth managers use magic

Mark Lister from Craig’s has a Magic Talk

https://omny.fm/shows/magic/craigs-i...-2#description