MEL - Meridian Energy

[Zaphod]

Week edison had them valued at 1.70 to 1.86

That's just a nominal value and we have seen quite a variety of calculations on the worth of Meridian.

The bottom line is that the real worth of a product or service is what the market is prepared to pay. Clearly, the market do not value Meridian as worth $1.70. This could however change in the future, especially subsequent to the additional $0.50 being paid by investors.

[blackcap]

the market can be slow to work out fair value for a stock.
IMHO MEL is cheap cheap cheap and a great medium term hold (5 years).

The IPO being priced at 1.50 is rediculous and yesterday share price was held down by quick profit takers (maybe today as well).
I dont think it is going to do an MRP(down 13%) in a couple of months if the markets stay bouyant.
Me thinks the offshore buyers wont stop buying it under 1.10 and should settle between 1.08-1.15 mark.

Think you may be right there Snapiti. Just looking at early trading, there seems to be huge insto support. The 1.10 offers got taken out, they are the weak staggers. There were 44 of them for about 4 million shares. Retail.

[Hoop]

1.08 Depth resistance nibbled away pre open
Now into 1.09 -1.10 resistance zone .......if this zone gets nibbled away MELCA will rise up to the next resistance at 1.15.

Minimal downside atm great support building up at 1.05..

No need to stag this stock as its potentially rising with a safety net at 1.05.

Disc: holding

[bull....]

good early support my 20c + divs looks good at this stage

[biker]

That's just a nominal value and we have seen quite a variety of calculations on the worth of Meridian.

The bottom line is that the real worth of a product or service is what the market is prepared to pay. Clearly, the market do not value Meridian as worth $1.70. This could however change in the future, especially subsequent to the additional $0.50 being paid by investors.

The Market does value Meridian at 1.70 ( or close to it.) 1.10 + 50c + 18 months to pay, has Edisons estimated value 0f 1.70 to 1.86 reflected by the market

[CJ]

The Market does value Meridian at 1.70 ( or close to it.) 1.10 + 50c + 18 months to pay,

The PV of 50c in one year at 10% is 45c which makes the market value of the share $1.55.

Devon puts the value of MEL at $1.10 with a Labour government and $2 with a National govt after next election. I guess that means there is a 50:50 chance of Labour getting in and implement which seem to high (even if they do get in, I dont see them implement as previously set out).

[TimmyTP]

Cool, my refund for the scaling just came back, so much for the whinging about them holding on to it for two weeks!

[CJ]

Cool, my refund for the scaling just came back, so much for the whinging about them holding on to it for two weeks!

Just been deposited into my ASB account as well (it didn't go in overnight so must be in the last 3 hours). Nice and speedy.

[biker]

50c to pay on a share in 18 months in my mind makes it effectively worth more that 50c today. It is a payment to be made, not money to be received, in 18 months, so in effect PV is greater? Interest free money loaned today must be worth more than when it must be paid back in 18 months

[QOH]

Cool, my refund for the scaling just came back, so much for the whinging about them holding on to it for two weeks!

Well I'm still whinging my money was taken out on October 10th, and I just had a look at my account and it hasn't been refunded yet. it's an ANZ account so not some obscure place they had to refund it to.