ZEL - Z Energy.

**thestg** · 04-01-2019, 10:46 AM

This must be close to the bottom at $5.35. 4 Traders ave target price is $7.15 which is 33.6% difference.
I bought some in Nov @ $5.30 (10% of my portfolio), picked up the dividend & am now thinking of adding a few more.
Maybe a stock for 2019. Any thoughts?

**Beagle** · 04-01-2019, 11:14 AM

Originally Posted by thestg

This must be close to the bottom at $5.35. 4 Traders ave target price is $7.15 which is 33.6% difference.
I bought some in Nov @ $5.30 (10% of my portfolio), picked up the dividend & am now thinking of adding a few more.
Maybe a stock for 2019. Any thoughts?

Fuel is a consumer staple and people will buy it in good times and bad. Demand is very inelastic (sticky, and doesn't respond much at all) to either the price or economic cycle. Airline jet fuel consumption will continue to grow strongly over time.
Petrol makes up only 26% of sales so EV impact (due to price and range issues) will be very, very gradual and a LOT less than some people are thinking. I believe at the current price the forward gross yield is about 15%. Consumer staples have traditionally been a very good place to weather the storm in a bear market. I have this in my portfolio and as a stock pick for the 2019 share trader competition.
I am not buying any stocks at present (55% cash in my portfolio at present and will not deploy any at this stage) but will reevaluate the lie of the land in a few weeks.

**iceman** · 04-01-2019, 11:15 AM

Originally Posted by thestg

This must be close to the bottom at $5.35. 4 Traders ave target price is $7.15 which is 33.6% difference.
I bought some in Nov @ $5.30 (10% of my portfolio), picked up the dividend & am now thinking of adding a few more.
Maybe a stock for 2019. Any thoughts?

We're in exactly the same boat except my "thinking of adding a few more" was taken away from me late yesterday when an old and forgotten small order was activated :-) PE now below 7 and a very healthy fully imputed dividend. No idea where the bottom is but watching with great interest and will be adding more

**Joshuatree** · 04-01-2019, 12:42 PM

Yes ,would like to add some more to ZEL and VEA (shell brand in Aus) and CTX (has caltex brand)looks great cyclic safe harbour buying with a decent yield too; in this mkt

**Waiuta** · 04-01-2019, 01:18 PM

I topped up last week at 560, also bought NZR at 228 and AIR at 303. So, a bit of diversification in fuel all with good dividends in today's world.

**thestg** · 04-01-2019, 02:20 PM

Thanks for the comments. Just bought at $5.35. Is now 18.8% of my portfolio.

**Joshuatree** · 04-01-2019, 02:34 PM

Averaging in over the year would be my way if i was disciplined enough.

**mcdongle** · 04-01-2019, 03:14 PM

I would like to top up on these also, But reading things like this from the NZR bond issue are making me cautious...

EMISSIONS TRADING SCHEMEFollowing the expiry of the Negotiated GreenhouseAgreement on 31 December 2022, Refining NZ will facethe prospect of full exposure to the New Zealand EmissionsTrading Scheme (NZ ETS) via a charge on Refining NZ’s directand indirect CO2 emissions. As Refining NZ’s operations areenergy intensive, full exposure to the NZ ETS could significantlyreduce Refining NZ’s competitiveness and ultimately it’sfinancial viability.