MEL - Meridian Energy

[Balance]

The power shares are on fire - utilities offering more than bank deposit rates.

Financial advisors putting ten of millions of dollars into yield share portfolios and chasing stocks.

[dreamcatcher]

Both MEL & CEN up $2 since my last sell to keep some order in portfolio. Prospects for both companies look bright with 'save the planet' demand for green electricity stocks. Sounds ridicules but can see $10-$12 share. While SP is tempting interestingly others already paying these current elevated prices see a future margin.............imo

disc: hold both

[alex f]

Div yield is 2.5%, PE 125, plenty of other companies with growth potential and a slightly better div. Cant understand the prices in this sector, maybe people think there is little downside? Chorus Spark figures are probably way better

[RRR]

S&P global clean energy index has only 31 stocks in total, 2 from NZ - Meridian and Contact with 5% each. I suspect this is the reason for the big spike recently??

https://www.spglobal.com/spdji/en/in...gy-index/#data

Discl - holding since IPO, not selling

[Traderx]

There is basically one indicator to watch for MEL (and to some extent CEN) and that is the shares outstanding in the ICLN etf. The index ICLN follows inexplicably has them as some sort of clean energy heroes (perhaps someone should send S&P a picture of the Stratford power station). Anyway ICLN has been adding shares on an exponential basis (ie adding new money) and therefore has been merrily buying up MEL. This has the potential to get more wild as ICLN is creating its own outperformance bidding up its own holdings, driving more inflows and so on. Anyway MEL investors should keep an eye on this page https://www.sharesoutstandinghistory.com/icln/ check the Ishares page daily!

https://www.ishares.com/us/products/239738/ishares-global-clean-energy-etf

[Joshuatree]

Thanks RRR and Traders.What r shares outstanding; borrowed and shorted?

[kyanar]

Bizarro. iShares Clean Energy ETF is almost 10% composed of just MEL and CEN. That's... awfully overweight for just two companies, surely?

[JohnnyTheHorse]

Thanks RRR and Traders.What r shares outstanding; borrowed and shorted?

Shares outstanding are the number of shares held in the ETF. The ETF manager is incentivised to create new shares as this means they gather more fees. Hence, a large proportion of shares being bought in ICLN are actually new shares being issued. The manager then has to buy shares in the underlying securities.

ETF's can create massive distortions in markets and this is a perfect example. People are buying something because it's going up, and because of this it keeps going up. Most people invested wouldn't have a clue what the underlying companies are, let alone the financials of those companies!

Easy to profit from!

[RTM]

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

Same. Great deal John Key did. Where would I put the cash if I sold I wonder.
Just saw this tonight.

[alokdhir]

Same. Great deal John Key did. Where would I put the cash if I sold I wonder.

Just saw this tonight.

Cash will at some point in the future make more sense then being invested in a hugely overpriced company ....MEL is the most valuable company now ...way surpassing the market cap of FPH ...Market distortions dont last forever . Sell and regret is always better then not sell and regret !!

FPH is a defensive play in such markets ...safer then most ...almost equal to cash ...lol

DYOR