MEL - Meridian Energy

[bull....]

8.59 close well those funds want in at any price

[LegendOfRiot]

Anyone else buying in at these levels?

[Stranger_Danger]

Anyone else buying in at these levels?

No, I'm easing mine out. You'd have to be on crack to buy at these levels.

[HITMAN]

Not sure I did the right thing, sold mine today, up over 400%. The buy orders have stacked up after closing. It may keep climbing. I'm happy though, let's see what else to invest in.

[Joshuatree]

Interested in what your strategy is here. Reached your target price? Have another stock lined up yet to run? This is a safe low risk play. Selling a portion to become free carried another option or just building a deck?

[Stranger_Danger]

Interested in what your strategy is here. Reached your target price? Have another stock lined up yet to run? This is a safe low risk play. Selling a portion to become free carried another option or just building a deck?

My strategy is to be on the other side of a rampaging herd once I feel we are well past the point where I can't justify the price using any sensible valuation method. I certainly take your point regarding the difficulty of finding sensible investment options in this environment, but that is precisely why most people go down holding handfuls of tulips, even when they know they shouldn't.

[HITMAN]

I'd been watching it climb for a while, when it got to over 100 times earnings was my box ticked to sell. I may regret my choice, but I've done far worse on some of my picks. I'll take out about 20% and invest the remainder.

[trader_jackson]

On a very simplistic basis, MEL has a market cap over $22b yet in FY20 only produced an NPAT of $176m - a PE of about 125x for a company barely growing.
Perhaps more relevant for the sector is price to EBITDAF, which is sitting at about 26x - EBITDAF is barely increasing either - a price to EBITDAF of mid teens (tops) would probably be more appropriate.
I suppose it doesn't matter if someone is perhaps viewed to be a fool to buy into MEL at these prices, as long as their is another fool around willing to pay a higher price.
Crazy times indeed.

[Joshuatree]

I'd been watching it climb for a while, when it got to over 100 times earnings was my box ticked to sell. I may regret my choice, but I've done far worse on some of my picks. I'll take out about 20% and invest the remainder.

Valuations dont seem to matter anymore ehhh.Let alone a possible dry spell ! 400% congrats. Had alook at mine just now 473%. havnt got any ideas where else to put it atm, great prob to have

[ScrappyO]

Been holding from the beginning and will keep holding, its not like electricity is some new fad.