MEL - Meridian Energy

[Baa_Baa]

MELCA will become MEL shortly, a long termer for my portfolio. I've only bought the IPO, and recently sold 20% of that IPO issue to part cover the instalment receipt and will top up the instalment balance from another recent sale of an under performer. At present with a holding average of $1 (the IPO price), MELCA has been a great performer even at the current oversold price. The $0.50 instalment payment will bring back the overall gain to just excellent, as opposed to stellar at present. And all this for a solidly profitable utility, countercyclical and promising healthy returns at relatively low risks for the long haul. The only concern on the horizon is whether the anti-privatisation lobby gets in power, though I'll concern myself with that closer to the time. Back in the bottom drawer they go, a happy holder.

BAA

One would imagine those who paid the IS would be planning to hold for the long term, at a guess those profit taking would sell before the IS is due. Just my 2c. I will be buying back in just prior to it being due.

[Joshuatree]

So Rio have been trying to find a buyer for Tiwai pt smelter for a long time. The Smelter is old; old plants close; the only reason it hasn't is govt handouts, cheap electricity and the huge cost of rehabilitation . So IF the writing is on the wall what effect will that have on Meridian?. ComCom are supportive of an appropriate return on investment for MEL so despite the sudden excess of power with Tiwai gone Meridian would still be a good income only investment but the s/p will drop ?. And industry would be attracted to cheapish power and slowly fill the Gap left by Tiwai.

[percy]

MELCA will become MEL shortly, a long termer for my portfolio. I've only bought the IPO, and recently sold 20% of that IPO issue to part cover the instalment receipt and will top up the instalment balance from another recent sale of an under performer. At present with a holding average of $1 (the IPO price), MELCA has been a great performer even at the current oversold price. The $0.50 instalment payment will bring back the overall gain to just excellent, as opposed to stellar at present. And all this for a solidly profitable utility, countercyclical and promising healthy returns at relatively low risks for the long haul. The only concern on the horizon is whether the anti-privatisation lobby gets in power, though I'll concern myself with that closer to the time. Back in the bottom drawer they go, a happy holder.

BAA

I would not worry about the anti-privatisation lobby.
They have short memories, and the will find another issue to run with.
This issue cost them support and the country a lot of money.
They will not revisit it.

[Baa_Baa]

Nice and simple, "The issue price for MEL shares will be calculated based on the Closing Price of the MELCA instalment receipts on 29 April 2015 plus the Final Instalment Amount" of NZD$0.50 https://www.nzx.com/companies/MEL/announcements/263029

Mark it in your diaries holders, your shiny new MEL shares issue on Thurs 21 May. The alert amongst you will realise a lead time of around a month, so also note:

"Expected Commencement of Trading on the NZX Main Board on a deferred settlement basis: Thursday, 30 April 2015. Expected Commencement of Trading on the NZX Main Board on a normal basis: Friday, 22 May 2015"

[Harvey Specter]

"Expected Commencement of Trading on the NZX Main Board on a deferred settlement basis: Thursday, 30 April 2015. Expected Commencement of Trading on the NZX Main Board on a normal basis: Friday, 22 May 2015"

What does that mean. You can sell your MEL from 30th but your broker will probably make you pay the 50c installment when you sell, the new shareholder having bought full MEL shares with no further payment?

[Baa_Baa]

May 15th is the last day for paying the $0.50 instalment. It's probably easier just to read the announcement.

What does that mean. You can sell your MEL from 30th but your broker will probably make you pay the 50c installment when you sell, the new shareholder having bought full MEL shares with no further payment?

[Joshuatree]

So Rio have been trying to find a buyer for Tiwai pt smelter for a long time. The Smelter is old; old plants close; the only reason it hasn't is govt handouts, cheap electricity and the huge cost of rehabilitation . So IF the writing is on the wall what effect will that have on Meridian?. ComCom are supportive of an appropriate return on investment for MEL so despite the sudden excess of power with Tiwai gone Meridian would still be a good income only investment but the s/p will drop ?. And industry would be attracted to cheapish power and slowly fill the Gap left by Tiwai.

Has this been discussed back a few threads? Will scroll back at see what i can find.

[dingoNZ]

I don't imagine Tiwai will be shut in the forseable future, it is currently 'in the money' with ALU prices and is expected to remain profitable. I don't think it will be shut before 2022. If Tiwai were (when it is eventually) to shut then the NZ electricity market would be oversupplied, meaning some of the generation would be required to be either switched off temporarily or shut down. Renewable energy would not be switched off, my pick would be that the Huntly plant would be shut off and the supply between the generators would be somewhat shared by swaptions/CFD's so that they can meet market demand.

[stoploss]

I don't imagine Tiwai will be shut in the forseable future, it is currently 'in the money' with ALU prices and is expected to remain profitable. I don't think it will be shut before 2022. If Tiwai were (when it is eventually) to shut then the NZ electricity market would be oversupplied, meaning some of the generation would be required to be either switched off temporarily or shut down. Renewable energy would not be switched off, my pick would be that the Huntly plant would be shut off and the supply between the generators would be somewhat shared by swaptions/CFD's so that they can meet market demand.

Heaven forbid electricity prices might actually go down .....only commodity that goes one way . ......

[percy]

I hope they go down tonight,as it is so cold here we have the heaters on.!!!!
What happened to the drought and lovely long warm Autumn.????