MEL - Meridian Energy

[Traderx]

You’ve got to take your hat off to blackrock, much better outcome for them than I expected! Who on earth is on the other side of the trade?

[Joshuatree]

Yay ,huge overhang gone ,like a spring released up and away.

[ados_nz]

Short Friday. Long Monday.

[BigBob]

Ah, I thought it was CEN you had the cheeky bid in for, I was going to try a few myself but neither MEL or CEN have gone where I thought they may have today.

It was CEN...

But I put you wrong - I was not at my computer when I posted and couldn't quite remember...

I was actually just over 660... Not 560...

Anyway, miles off regardless... Alg...

[JSwan]

MEL and CEN are becoming like meme stocks now 😂

[Baa_Baa]

It was CEN...

But I put you wrong - I was not at my computer when I posted and couldn't quite remember...

I was actually just over 660... Not 560...

Anyway, miles off regardless... Alg...

I was in the bid but way under that, until Blackrock showed their hand in the auction and amazingly (to me anyway) the bids just piled in over the top, millions of them. About then I canceled my order, became obvious pretty quickly there was not going to be a capitulation bloodbath. Basically they managed to get out on market at about 5% discount to the price at trading close. Remarkable. Still they lost an eye watering amount on their recent buy in. Big end of town, hard to understand at times. Fun watching though, confounded most everyone who posted here it seems.

Anyone made a killing on this?

[RGR367]

Dividends paid today and at the rate MEL is paying dividends, I will recoup what I paid in its IPO in less than 3 years. And that's computing only on the basis of net dividends paid. I cannot complain for this being a good-bottom-drawer kind of a share.
GL and kudos to all long term holders.

[Hoop]

I wondered on Wednesday if it was wise for me to present my chart showing MEL's breakout. I wasn't overly confident as breakouts do fail, albeit rarely...and there would be a good reason if this breakout failed even though the oncoming share dump was widely publicized....However TAers (Chartists) get criticised (losing their credibility by using hindsight) when they produce a chart after the event....so I went ahead and published the chart on Wednesday and held my breath...

My chart showing MEL's bullish breakout triggering TA buy signals before the re-balance (Wed 14th April) .probably didn't make sense to a few investors who figured using price/demand logic that the huge share dump would significantly drop the price back towards its fundamental value..

At close today the huge number of shares presented to the market at Friday's close were gobbled up at $6.05 up 5c for the day and above the rectangle pattern price breakout ...Earlier today, charted price support was tested with a price fall (throwback) but the price bounced up during the afternoon and at market close remained above it's support.(very bullish)

Score (so far) TA=1 shorters and bargain hunters =0

Monday trading has question marks and perhaps later on as those shares get on sold through the system...Next week we may get educated as how the system protects itself when a sudden but expected re-balance causes a surge of shares which could swamp a small market..Greekwatchdog post tells us part of it.....All very interesting

What are your thoughts on TA reliability during large rebalancing events?

This result shows TA can be reliable during large re-balancing events.

[alex f]

You’ve got to take your hat off to blackrock, much better outcome for them than I expected! Who on earth is on the other side of the trade?

They are playing games, they were pumping the price all day.
At the end of day, I’m sure some corporates wanted blocks but the rest were probably “sold” to other Blackrock holdings.
Buyers for 100m shares don’t just appear from no where.
They’ll unload them over time, but may very well drive the price up in the short term to flush out shorters

[Biscuit]

They are playing games, they were pumping the price all day.
At the end of day, I’m sure some corporates wanted blocks but the rest were probably “sold” to other Blackrock holdings.
Buyers for 100m shares don’t just appear from no where.
They’ll unload them over time, but may very well drive the price up in the short term to flush out shorters

Good thinking, that seems a reasonable explanation.