MEL - Meridian Energy

[Baa_Baa]

Anyone have any insights why the pop today, now $1.035?

[mattwanz]

Anyone have any insights why the pop today, now $1.035?

Strong NZ economic forecast, currency strengthening, would imagine stable-ish returns? When OCR goes up in March could be some more offshore investment here I suppose...

[Tyro]

Please does any know how much dividend to expect, and when?

[macduffy]

Please does any know how much dividend to expect, and when?

Interim result announcement is expected on 19 February.

http://www.meridianenergy.co.nz/abou...uncement-date/

[cyclist]

I’ve been pondering the true value of the instalment receipt process, for someone like myself who is still sitting on cash in the bank. It turns out that the true value is a lot less than the headline “13.4% Gross in the First Year” number quoted in the prospectus.

Consider someone purchasing 10000 shares. i.e. ultimately a $15000 purchase, in the first year made up of $10000 for the instalment receipts, plus $5000 still in the bank. Annual return, assuming gross divi of 13.4 c/share, and gross interest in the bank of 4% is as follows:

(0.134 * 10000 + 0.04 * 5000) / 15000 = 10.3% gross return

That compares to (0.134 * 10000) / 15000 = 8.9% gross, if we paid full price up front.

(Simplified ignoring the time value of money)

Conclusion: The instalment arrangement only has significant value if you have another high return option for the $5000 until it is due for payment, or you don’t have the $5000 in the first place and hope to sell the instalment receipts before the final instalment, without any capital loss on sale.

I entered this stock strongly against my gut feel after a careful read of the prospective. Part of the reason for entering anyway was being seduced by the headline “first year” yield. Looks like I have been outsmarted.

[peat]

How would that change if you put the 5k into more instalment receipts ?

[cyclist]

I guess that is possible, but you are of course exposing more of your capital to any risks that are associated with this particular company.

[kyanar]

I see a buyback announcement came in about an hour ago

https://nzx.com/companies/MEL/announcements/246285

[Harvey Specter]

I see a buyback announcement came in about an hour ago

https://nzx.com/companies/MEL/announcements/246285

Not a biggie. Just for the purposes of their share option plan. They cant issue more shares since that would effect the Governments % holding.

[Tyro]

Please, is there a post float thread for MELCA anywhere?