MEL - Meridian Energy

[macduffy]

I don't think the proposed incentives are necessarily a reflection on Meridian the company but rather they indicate the govt's determination to make sure that the partial float is a success. I will withhold a view on the merits of Meridian as an investment until there are some hard numbers available.

[PartyPooper]

As a rookie investor, getting burned by MRP early on was not fun at all. I'll stay well clear of Meridian until I know the price. Even then I think i'll wait till it goes live or look into it after the next election.

[MAC]

As a rookie investor, getting burned by MRP early on was not fun at all. I'll stay well clear of Meridian until I know the price. Even then I think i'll wait till it goes live or look into it after the next election.

Welcome to the forum PartyPooper.

That's a wise move, in this instance if you are unsure the best thing to do is to do nothing.

Meridian have a slightly different business model from MRP and CEL, they inherited the 'jewel in the crown' assets from ECNZ, very big well depreciated south island hydro cash cow plant.

But, the risks are also a little different, Meridian are more prone to dry year events and more prone to low wind years then their competitors.

Because of this it is probable that Meridian over time will be a little more volatile, as far as power companies go, and there may well be a better entry point to buy in during a future dry year event.

[peat]

wow looks too good to be true.


and it is.
paying out 1.5 x earnings in dividend to provide that yield.

[Master98]

wow looks too good to be true.


and it is.
paying out 1.5 x earnings in dividend to provide that yield.

The question is how long this dividend policy can last,MRP pay just over 100% earnings in dividend is more reality.

[arc]

mel announcement

Meridian's retail sales volumes in July 2017 increased by 14.3% compared to July 2016