Vector Limited (VCT)

[Mista_Trix]

“The Court has advised it did not agree with a number of elements of the Commerce Commission’s reasoning process,

In other words Shonky decision making.

But it didn't agree with Vectors proposals either, shonky Monopoly behaviour ... unlikely.

All I'm saying is its not really that black and white.

[JAYAY]

But it didn't agree with Vectors proposals either, shonky Monopoly behaviour ... unlikely.

All I'm saying is its not really that black and white.

"...an exceptionally high hurdle that the Court considers must be achieved before the Commission’s approach could be overturned.

So why should there be "an exceptionally high hurdle" for vector to jump to get a flawed decision rescinded.

It appears to me it is too easy for the regulator to jump on popular targets such as Vector with flawed decisions.

Given the regulators power it is essential that their decision making process meets a higher standard than has been evidenced.

[Mista_Trix]

"...an exceptionally high hurdle that the Court considers must be achieved before the Commission’s approach could be overturned.
So why should there be "an exceptionally high hurdle" for vector to jump to get a flawed decision rescinded.
It appears to me it is too easy for the regulator to jump on popular targets such as Vector with flawed decisions.

The court agrees that it must first be achieved. Its a monopoly, you cant just casually go changing the rules, if it turned out to be a worse application of judgement it'd take years to overturn with Vector fighting at every twist and turn.

I agree its not perfect for the company, but it operates in a monopoly position, you cant just cry incompetence when Vector try to overturn a decision and the proposal gets rejected by the courts.

[JAYAY]

Well then here is your best condemnation of the regulator.

The international credit rating agency Standard & Poors put Vector's BBB+ credit rating on negative credit watch late last month after it signalled New Zealand's regulatory regime is less stable and a higher risk than in other nations.

[Bjauck]

Investors in Monopoly Infrastructure companies should be able to earn reasonable rates of return for the risks they take on. If ComCom adds to the uncertainty of returns, then investors (shareholders and funders) will expect higher returns before committing funding. The end result will either be inadequate infrastructure and/or (eventually) higher prices paid by the consumers, things I assume the ComCom was not set up to encourage.

[Mista_Trix]

Well then here is your best condemnation of the regulator.

The international credit rating agency Standard & Poors put Vector's BBB+ credit rating on negative credit watch late last month after it signalled New Zealand's regulatory regime is less stable and a higher risk than in other nations.

You might be forgetting that one of the reasons our system is seen as unstable internationally is that its made up of so many disparate bodies that govern different chunks. Its not just the ComCom that has a say but a group who could not by any means be called a collective.

In my opinion this fragmented cluster is where the instability comes from.

[Jim]

I think this is the time to buy into this company. It is under some selling pressure but the yield is very reasonable. Time to accumulate........

[BlackPeter]

I think this is the time to buy into this company. It is under some selling pressure but the yield is very reasonable. Time to accumulate........

had the same idea and did a bit of research. Overall, not a very inspirational company (but what monopoly is?), however analysts (Reuters, Financial Times) seem to think that the shares might be somewhat undervalued. From memory - I thought there was not too long ago some report on a ComCom decision or statement related to Vector (which would be a risk factor, but can't find with Google, i.e. I might be wrong), but overall - it starts to look worth a bite in my books as well.

Just wondering where the recent fall came from ... maybe here are some other people knowing more about the company than we do?

[Hawkeye]

https://www.nzx.com/companies/VCT/announcements/256624

[JAYAY]

From Vector AGM presentation:
"The Commission has in its recent draft decisions reduced the amount of
capital we are able to invest in the network by 18%. It has also reduced the
amount we are able to spend on operating expenditure by 9%."


Those Guys at ComCom really are in a special class of genius.