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  1. #1
    Member tobo's Avatar
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    what do we think of this rate/risk.
    I only have very big picture opinion, not much depth of knowledge about bonds.

    Infratil bonds (closed May2011) were 8.5%
    Z Energy bonds are 7.25%

    I don't see much risk in the failure of petrol station business.
    I see the biggest risk over Z Energy as a gradual move away from petrol stations when oil runs out (10 or 30 years away?). Maybe petrol stations will become electric car plug-in points, or Hydrogen fuel cell outlets, or just new new "corner dairies", but if cars disappear and everyone uses electric buses or monorails (or bicycles), petrol stations will suffer the same problem that Bookshops are suffering in the face of internet books.

  2. #2
    Legend minimoke's Avatar
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    Quote Originally Posted by tobo View Post
    I see the biggest risk over Z Energy as a gradual move away from petrol stations when oil runs out (10 or 30 years away?).
    They don't make much on the sale of petrol. Its the high margin pies, milk and considerable where they make their loot. It might have been Shell, or was it Mobil who had a requirement of staff to up sell "would you like a cadbury Peanut slab with that purchase"

  3. #3
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    Quote Originally Posted by minimoke View Post
    They don't make much on the sale of petrol. Its the high margin pies, milk and considerable where they make their loot. It might have been Shell, or was it Mobil who had a requirement of staff to up sell "would you like a cadbury Peanut slab with that purchase"
    true but without the petrol to get you in there, there is no chance of the upsell.

    Another risk, given your line of thinking is payment at the pump with NFC (near feild communication - ie. swipe cards). Some stations do this at the moment but implement it so badly (intentionally??) that no one uses it. If tap and go payment becomes simple and ubiquous, then that is a significant risk of them loosing the impulse purchase.
    Last edited by CJ; 12-07-2011 at 12:04 PM.
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  4. #4
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    Quote Originally Posted by CJ View Post
    Another risk, given your line of thinking is payment at the pump with NFC (near feild communication - ie. swipe cards). Some stations do this at the moment but implement it so badly (intentionally??) that no one uses it. If tap and go payment becomes simple and ubiquous, then that is a significant risk of them loosing the impulse purchase.
    NFC going forward will be through smartphones. Maybe that is the true reason that petrol stations don't want you using your phone at the pump...

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