CNU - Chorus

[Major von Tempsky]

Nope, can't see any reason whatsoever Burma Boy to revise my statement. I would suggest you are at variance with the facts and ComCom and NZ history. In fact I'd be surprised if you even knew who Wolfgang Rosenberg and Dr Sutch were.

On a different less boring tack I see a new statement released by CNU that AMP has increased its stake from 34 mill shares to 39 mill shares, bit over 10% of their share capital - their analysts must have some idea of an appeal by CNU with some likelihood of success hein?

[sharer]

Well, i did the same as DavidB, & for similar reasons. Thanks to others for their comments too.
There have been statements that the new ruling might reduce CNU revenue by about $25m/yr,
which would be reason for some nervousness, if it is true.
Especially as we don't yet know what the div yield will actually be, despite common assumptions.
So i'm standing ready to dump the extra shares if necessary ... but the recent AMP move does strengthen resolve to hold somewhat.
A late rush led to close @ 316, seems likely to open about 315 tomorrow.

[karen1]

A broker perspective http://www.nzherald.co.nz/business/n...ectid=10804712

[craic]

Had you sold 1000 CNU shares when they came on the market, you wold have recovered $3,200 and had you invested that in TEL at 200cps you would have 1600 TEL shares worth $4,240 on yesterdays price.

[blockhead]

Now how would a broker be able to quantify this statement ?? Unless I have missed something we have no idea what div CNU will pay

Forsyth Barr broker David Price said the market did well in comparison to Australia, who just limped in to positive territory today. The S&P/Australian 200 Index rose 9.5 points or 0.22 per cent to 4310.88.

"The main game continues to be Chorus. The stock offers an attractive yield albeit with less clarity than before."

[BIRMANBOY]

Had you sold 1000 CNU shares when they came on the market, you wold have recovered $3,200 and had you invested that in TEL at 200cps you would have 1600 TEL shares worth $4,240 on yesterdays price.

Bugger, the Delorean is in the garage..I'll have to wait until they replace the spindlle reciprocator filter on the year selector mechanism.

[craic]

Wasn't it Warren Buffet who said that he never buys into IPO's? He waits to see what the company can deliver. I would hate to think of CNU becoming another Wellington Drive Technology.

[CJ]

Wasn't it Warren Buffet who said that he never buys into IPO's? He waits to see what the company can deliver. I would hate to think of CNU becoming another Wellington Drive Technology.

As a regulated monopoly, CNU should be allowed to return a sufficient return on equity. Therefore it will be no WDT. Whether that return justifies the current share price is another question but there is no doubt that CNU will be profit and will pay a dividend.

Vector would be the closest comparison as the majority of its business is a regulated monopoly.

[macduffy]

Shareholders in CNU - and TEL - will be interested in Brian Gaynor's excellent article this morning, tracing the history of the Government/Commerce Commission's "influence" on these companies. Pretty much why I continue to treat these two and the proposed SOE partial privatisations will a high degree of caution.

http://www.nzherald.co.nz/business/n...ectid=10805262

[The BOWMAN]

Can anyone do a bit of explaining why CNU is seen as a divi yield stock? They are spending lots of money on fibre roll out for the next couple of years or more. In the meantime the income stream is not going to catch up. So it seems that they will be in an investment mode for quite a while. Where will the surplus profit come from? What do you think their divi yield will be?