Where to invest?

[fish]

I'm looking at getting into some energy company shares. Looks like Mercury is the favourite at the moment here, but any thoughts about it's value vs meridian, contact, genesis etc?

I have investments in all.
Contact since the IPO-probably around 20 years.
Mercury is by far my biggest holding-and has been for about 9 months-and I bought a lot more last week-both before and after the quarterly result.
I margin lend-current rate is 5.5%.Imputation credits reduce tax on my self-employed income.
So they all give me a net profit every year and have been good investments.
I have posted on their respective threads and some of the reasons why I think mercury is the best investment atm.
There are other reasons though-I like the mercury philosophy,their clean green image,encouragement of solar,their proximity to Auckland/Hamilton and the government is the biggest shareholder.The special dividends are nice as well

[Jonboyz]

I have investments in all.
Contact since the IPO-probably around 20 years.
Mercury is by far my biggest holding-and has been for about 9 months-and I bought a lot more last week-both before and after the quarterly result.
I margin lend-current rate is 5.5%.Imputation credits reduce tax on my self-employed income.
So they all give me a net profit every year and have been good investments.
I have posted on their respective threads and some of the reasons why I think mercury is the best investment atm.
There are other reasons though-I like the mercury philosophy,their clean green image,encouragement of solar,their proximity to Auckland/Hamilton and the government is the biggest shareholder.The special dividends are nice as well

Thanks for that. I defintely have a preference for renewable energy sources as well, so Mercury and Meridian lookbest to me. Will put some investments with both over the next few months. Both seem reasonably valued at the moment.

[percy]

Sorry I forgot about this thread.Lets start afresh.
Objectives;
Time frame 4 to 5 years
The portfolio is looking for dividend yield of 3% pa with the capacity to grow to 6% to 8%.
Low churn.

HBL.Heartland Bank.Share price $2.11,PE 17.34,yield 4.22%.A proven winner.Strong organic growth in niche markets New products being well received via digital channels.Very high net interest margin.

HLG.Hallenstein Glasson,Share price $4.25,PE 14.67,yield 7.41%.Business back to marketing the right clothes the customers want. Momentum gaining traction.As per all retailers we need to watch out for weaken NZ $ and customer's buying patterns.

MEL.Meridian Energy. Share price $2.98,PE 36.75 yield %6.34%.Renewable energy supplier in both NZ and Australia.Powershop gaining traction in Australia.MEL's IT being licenced in UK and most probably Europe some.Growing use of Electric Cars will help grow demand.

OCA.Oceania Healthcare.Share price $1.03.PE 14.61.Yield, not yet paying a dividend.Retirement village/care provider.Strong tail winds will drive this sector over the next 20 to 30 years.,

SUM.Summerset Group.Share price $5.52,PE 6.59,yield 1.63.Proven record of following Ryman's successful retirement village development model.Development and unit resales growing strongly.Although the yield is poor the share price growth will more than compensate.

THLTourism Holdings.Share price $5.95,PE 23.19.yield 3.53%.Independant motor home holidays/travel is a growing worldwide sector.THL's business models are at the forefront,providing for all their customers' requirements.

TRA.Turners Automotive Group.Share price $3.27,PE 12.81 yield 4.43%.Vertically integrated business model, in a fragmented used truck.equipment and vehicle sales sector.Property developers of their own premises,sales,finance,insurance,and soon vehicle repairs.
All the above have strong balance sheets,good directors,strong management,strong brands,and are focussed on their core businesses.

But wait there's more.
For those people with a short attention span,ie 4 months instead of 4 years;
ALF.Allied Farmers.share price 10.6 cents,PE 10.93,yield 1.89%.Business turnaround is gaining traction,with ALF gaining market share in livestock commissions,and now finance.Could be a bit of fun should litigators are successful in the up coming Property Ventures directors court case.

With a market correction in progress what action to we take with our portfolio.?
NONE.
The reasons we brought these companies remains intact.
All the companies have strong balance sheets,their business models are sound,and they all the capacity to pay increasing dividends.
The outlook for NZ remains strong,with very low unemployment, and interest rates likely to stay low for the next year or two,or three.
"Well positioned."

[iceman]

With a market correction in progress what action to we take with our portfolio.?
NONE.
The reasons we brought these companies remains intact.
All the companies have strong balance sheets,their business models are sound,and they all the capacity to pay increasing dividends.
The outlook for NZ remains strong,with very low unemployment, and interest rates likely to stay low for the next year or two,or three.
"Well positioned."

Wise words

[Leftfield]

I'm with you Percy! Well said.

[fungus pudding]

With a market correction in progress what action to we take with our portfolio.?
NONE.

Why wouldn't you add to it?

[percy]

why wouldn't you add to it?

No reason at all...........

[Beagle]

I think we could see some retracement of the PE expansion we've enjoyed in previous years. I sold stocks recently like HBL with a PE of 17 at $2.14 as this simply got ahead of itself and a PE of that level is not appropriate for a bank with their modest EPS growth, AIR at an average of over $3.40 as risks outweighed potential short term gains and PPH at $4.15 as I think its got ahead of itself. What if the Dow fell 3,000 points at some stage in the near future. Some of us would be well positioned with plenty of dry powder to pick through the opportunities on the NZX when the carnage ensued. This bull market is VERY VERY mature. Some CASH in one's portfolio right at the minute looks like a very prudent risk management strategy to me.

[couta1]

With the OCR left unchanged, and unlikely to be increased this year, good divvy paying stocks are going to continue to have great appeal to your average punter, regardless of US influence.

[Beagle]

Yes mate I agree and people are always going to use power aren't they !