CNU - Chorus

[fish]

For those anticipating a decision to return to dividend payments around June time, say for Sept payment, a reminder here that is unlikely with ComCom dithering until Sept, with no guarantee of that timeframe or the outcome, then Mar 2016 earliest. Another whole year. Sigh.

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When ComCom announced this I wasn't sure if it meant the dividend would be delayed until 2016.
The lack of direction from chorus maintains my unceratainty.
However if you accept that the initial concom decision was wrong and the government never intended concom actions to result in no dividends from a private company doing their best to comply with complex legislation and the demands of broadband roll-out.
Then by reducing costs on broadband roll-out and bringing forward dates plus the effect of lower interest rates it is quite likely chorus will be making profits.
In this case are they not obliged to pay dividends eg from September.
Would a special dividend before then not be on the cards?
I am not a lawyer or financial researcher but do like to think widely how to improve life!

[couta1]

Bunter I find your forward stock valuations very exciting (Except your Sum one)and we should all be rolling in clover in no time but you know the old saying, If it sounds too good to be true then.....

[bunter]

If it sounds too good to be true then.....

The October 14 valuation of $3.02 might have seemed TGTBT too, when the SP was $1.90. Now 2.85.

[Bobdn]

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When ComCom announced this I wasn't sure if it meant the dividend would be delayed until 2016.
The lack of direction from chorus maintains my unceratainty.
However if you accept that the initial concom decision was wrong and the government never intended concom actions to result in no dividends from a private company doing their best to comply with complex legislation and the demands of broadband roll-out.
Then by reducing costs on broadband roll-out and bringing forward dates plus the effect of lower interest rates it is quite likely chorus will be making profits.
In this case are they not obliged to pay dividends eg from September.
Would a special dividend before then not be on the cards?
I am not a lawyer or financial researcher but do like to think widely how to improve life!

Yes, getting way ahead of ourselves but special dividends aplenty surely. If the ComCom decision stands, I'll be hoping for an all out dividend pay out of 40 cents per share by March 2016. The opportunity cost of holding CNU is mounting up, I'll call it even at 40 cents per share.

[Bobdn]

Wow, this thread used to be on fire when we were all losing our shirts (on paper) and non-holders would drop by and chuckle away.

52 week high today.

[cyclist]

Bunter I find your forward stock valuations very exciting (Except your Sum one)and we should all be rolling in clover in no time but you know the old saying, If it sounds too good to be true then.....

In general I agree with the sentiment couta, but that doesn't change the fact that so far we have both been spectacularly wrong on this one. I bought back in around $1.70 and then got the nervous nellies and sold out again (and I recall you did too around those levels?). Having also done something similar with DIL, I am learning to trust my convictions a little more, or to at least eat humble pie and re-enter when the market is telling me my concerns are unfounded.

p.s. not saying there is value at current levels - only time will tell on that score and I would be weary buying now. Don't hold.

[GTM 3442]

I'm inclined to think that any dividendpayments will be far enough in the future for Chorus to become a political football in a similar way to the electricity companies in the run-up to the 2014 election.

A natural monopoly is always an easy target. . .

[JAYAY]

Can anyone please tell us what this is all about. (And how come it's only available behind NBR's paywall)

$360m broadband top-up: Adams drops broad hints about how new spending will be contested..

[xafalcon]

IIRC this was "announced" in National's election campaign, definately nothing new.

Being a slightly rural dweller (only 6km from Hamilton city boundary) I can attest to how poor rural broadband is, and how little the ISP's are interested in resolving any problems. In the evening it is not always possible to "stream" utube at lowest resolution. I call my internet "narrow band".

[dodgy]

IIRC this was "announced" in National's election campaign, definately nothing new.

Being a slightly rural dweller (only 6km from Hamilton city boundary) I can attest to how poor rural broadband is, and how little the ISP's are interested in resolving any problems. In the evening it is not always possible to "stream" utube at lowest resolution. I call my internet "narrow band".

I live in Long drive in St Heliers and have the same problem day or night and have exactly the same problem so don't feel too bad. Chorus / Isp service is junk status.
-d