ZEL - Z Energy.

[winner69]

Sell the rumour and buy on the facts — or something like that

No worries.

WhTever that meant te market seems to like what they said

That Flick thing was always a dog so essentially writing off the investment no surprise. That’s what happens when you play with others money

[Beagle]

market pretty positive it seems with the share price up over 2%, I'm a bit confused why, these results look shocking to say the least

Agreed it was ugly. Early days, but so far I would say that the share price reaction is bizarre. Lets wait and see what happens when the Australian market opens. Doubt they'll think much of this result.

Yeah, flick was always going to be exactly that with shareholders money. Reckless. Just invest in more charging stations at your service stations and stick to your knitting for goodness sake.

[macduffy]

Agreed it was ugly. Early days, but so far I would say that the share price reaction is bizarre. Lets wait and see what happens when the Australian market opens. Doubt they'll think much of this result.

Yeah, flick was always going to be exactly that with shareholders money. Reckless. Just invest in more charging stations at your service stations and stick to your knitting for goodness sake.

Yes, it's a dilemma. A company in a sunset* industry needs to diversify its business by investing in, ideally, related directions. Not all these new investments will succeed but "sticking to the knitting", equally, will risk failure sooner or later.

* If we accept that the oil industry is a sunset industry?

[Bobdn]

Yes, it's a sunset industry but the sunset will take a good 30 to 40 years. Sticking to ones knitting for 40 years sounded pretty good to me. You could make beautiful big cardigans to wrap around adoring shareholders in that time frame.

Flick was a poor choice - I made the point as soon as they announced it many many ZEL thread pages a go.

[Beagle]

They certainly can cuddle shareholders with lots of warm cardigans if they don't do anything silly and I agree its going to be a very long sunset. I haven't read into their store sales stat's but I would have thought its pretty obvious as the EV uptake grows ZEL have an opportunity to provide rapid charging stations so EV owners can charge up with power, coffee and snacks at the same time. For example, my local Mobil has a subway within the store and I have seen Caltex stores with subway's within so its not like ZEL are not aware of this already. Maybe an idea for ZEL to expand more of their site's this way ? Give EV travelers on the go somewhere to charge up and replenish their bodies at the same time, build it and they will come...

ICE engines not dead yet by any means and as soon as the Govt get their claws in with road user charges the economics of EV's are going to change quite dramatically.

[ananda77]

[QUOTE=winner69;776585]Media in on the act - 80% drop in earnings not good

the falling NZD must have had quite an impact. Bought gold end of November 2018 at a USD/NZD level ~0.69, now trading just under 0.64. Buying crude getting expensive. Wonder how the government is dealing with this situation? Debt also becomes expensive....and I think, the currency race to the bottom is far from over yet...

[Antipodean]

Still have 40-45% of market share despite all the headwinds of the past 6 months.
$20 debt paid down
Interim dividend confirmed and reaffirmed guidance for end year (looking at Z history they are fairly consistent for guidance)

Flick seems... horrible.

Market study final due 5th December and I'm still of the opinion no major legislative impact will come out of it from this government.

Mixed bag HY more than completely negative... not surprised by anything stand out.

[winner69]

Still have 40-45% of market share despite all the headwinds of the past 6 months.
$20 debt paid down
Interim dividend confirmed and reaffirmed guidance for end year (looking at Z history they are fairly consistent for guidance)

Flick seems... horrible.

Market study final due 5th December and I'm still of the opinion no major legislative impact will come out of it from this government.

Mixed bag HY more than completely negative... not surprised by anything stand out.

Consistentbabout their profit guidances?

Last 15 months - 3 Downgrades / 2 upgrades / 2 reaffirm

Next announcement - takes your pick I reckon

[Beagle]

Interesting insight into the state of the economy. Maybe all those pessimistic ANZ reports were right ?
http://www.sharechat.co.nz/article/5...ing-sectorhtml
Extract for the time poor amongst us "Z Energy chief executive Mike Bennetts said the company is seeing a slowdown across the country"
and this... Bennetts said the economy was the weakest he had seen it in the past 10 years. Even jet fuel volumes, which had been growing at double-digit rates, were flat in the past six months..
So the economy is slow and their margins are under very intense pressure that's likely to increase as minnows expand more and we have the Govt about to release their fuel study report next month so there's regulatory risk as well. What a "compelling" investment proposition this one is ! (Sarcasm intended in case its not perfectly obvious to anyone )

[macduffy]

Consistentbabout their profit guidances?

Last 15 months - 3 Downgrades / 2 upgrades / 2 reaffirm

Next announcement - takes your pick I reckon

In a changing, competitive market I suppose profit guidance is subject to change, particularly as the price of their product is set on a volatile world market.