ZEL - Z Energy.

[ananda77]

I think its safer to wait until we hear what they have to say on 31 October. I'm interested in the mid $4 range too but am keeping my powder dry in the meantime.

If you already hold a good amount in the company, your strategy is completely logical. However, am in the accumulation phase, so my strategy is to use short term uncertainties to build a long term investment.

[ananda77]

Just try not to overcommit. At the end of the day is this just another retailer in a sunset industry without realistic growth expectations. Nothing clever or cutting edge about what they are doing ... and with the increase of the discounters they will need to compete more and more on price for a product which is absolutely identical to the fuel most other suppliers are delivering. Sure - all these confusing discount schemes might slow down the margin melt for another couple of years, but while you can confuse most consumers for some time, you can't confuse all consumers for ever - and neither have ZEL a monopoly on confusing customers with stupid loyalty schemes.

One day their current customers will wake up and realize that the emperor of complicated discount schemes offers no tangible benefits to their customers over the competition.

Yes sure. Lower crude prices will be good to increase margins with pump prices low, concerns about margins will dissipate. Then there is the EV (?revolution?) which I think will be beneficial for a company that has infrastructure already in place and just needs to add charging stations to the mix.

[Beagle]

If you already hold a good amount in the company, your strategy is completely logical. However, am in the accumulation phase, so my strategy is to use short term uncertainties to build a long term investment.

Agree with BP's sentiment expressed above. The danger of another downgrade is crystal clear to me. The chart also looks a bit ominous.
I see no reason to buy right at the minute. It needs to offer compelling value for me to get back on board. Fair value, I have no interest.

[winner69]

The expected cost of ‘discounts’ from loyalty schemes is built into the displayed pump price.

[ananda77]

The expected cost of ‘discounts’ from loyalty schemes is built into the displayed pump price.

That does not make sense too me or is irrelevant or why did the company needed to downgrade based on discounts then. I think, as a customer, discounts to me are rather a put-off then an incentive. The earlier the company wakes up to this fact and starts to compete on price alone, Gull is my preferred station. Besides, I have no time to bother with discount schemes anyway.

[winner69]

That does not make sense too me or is irrelevant or why did the company needed to downgrade based on discounts then. I think, as a customer, discounts to me are rather a put-off then an incentive. The earlier the company wakes up to this fact and starts to compete on price alone, Gull is my preferred station. Besides, I have no time to bother with discount schemes anyway.

‘Competitive pressures’ were the main cause of the earnings downgrade ...keeping pace with whatbthe competition we’re doing to maintain share ....pump prices being the key.

[ananda77]

‘Competitive pressures’ were the main cause of the earnings downgrade ...keeping pace with whatbthe competition we’re doing to maintain share ....pump prices being the key.

yes...with players fooling around with complicated bonus schemes. I have asked before, how much does it cost to think out, develop, maintain these schemes for no good reason at all - at least for me, no good reason?

[Beagle]

Discount scheme's and incentives built into the psyche of most people, for example Air New Zealand has millions of airpoints members.
I understand some people can't be bothered with them but there's plenty of people who can and don't live near a Gull or one of the other minnows with no discount scheme.

[winner69]

yes...with players fooling around with complicated bonus schemes. I have asked before, how much does it cost to think out, develop, maintain these schemes for no good reason at all - at least for me, no good reason?

Me too

Weird thing is that there own research shows that most punters just want a convenient location, good price and get out as quickly as they can (you and me by sounds of it?) to get their fuel.

But they seem hell bent on ‘loyalty’ being the future.

[ananda77]

Me too

Weird thing is that there own research shows that most punters just want a convenient location, good price and get out as quickly as they can (you and me by sounds of it?) to get their fuel.

But they seem hell bent on ‘loyalty’ being the future.

...the 'NO GIMMICKS BONUS SCHEME': convenient location - overall presence - cheapest offer - saving time. That ensures my loyalty every time.

Question: are fuel retailers bound to display their best offer after discounts? This would be transparent reality competition.