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  1. #1801
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    Quote Originally Posted by bohemian View Post
    Can somebody tell me why the price keeps going up, I know about the lake levels and OCR but isn't MEL basically a dividend stock. Am I missing something.
    Some things cant be explained other than irrational exuberance IMO stocks like this and CNU are hugely overpriced and just waiting for a big thumping. PS-Even the divvy yield is currently nothing special. PPS- Best left alone, once again IMO.

  2. #1802
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    Quote Originally Posted by couta1 View Post
    Some things cant be explained other than irrational exuberance IMO stocks like this and CNU are hugely overpriced and just waiting for a big thumping. PS-Even the divvy yield is currently nothing special. PPS- Best left alone, once again IMO.
    Well I'm glad I didn't sell a year or so ago when I thought the SP was getting a bit crazy. In the last year the shares have risen by about what I paid for them at IPO.

  3. #1803
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    Quote Originally Posted by Onion View Post
    Well I'm glad I didn't sell a year or so ago when I thought the SP was getting a bit crazy. In the last year the shares have risen by about what I paid for them at IPO.
    Everyone wants a bargain even the poor sucker left without a chair to sit on once the music stops.

  4. #1804
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    Good news for MELs Aussie generation

    https://www.smh.com.au/business/the-...20-p51p7t.html

    We think our market is broken just look at what aussies are paying for their power. Mel spokesmen quoted in the article as per below.

    Ed McManus, chief executive of electricity retailer Powershop and generator Meridian Energy, said it was time the energy industry and the government repaired their relationship and create stable policy.

    “There is an opportunity for Scott Morrison to reset the agenda,” Mr McManus said.

    “There is also an opportunity for politicians and industry to work together to solve the issue of combined energy and environment policy, in a way that allows Australia to both decarbonise and get energy prices down.”

    I wonder if MEL are looking to purchase other Australian energy assets - clearly huge scope to grow profitability in Australia as the green alternative to all other power companies more so thank NZ one would think ....

  5. #1805
    ShareTrader Legend Beagle's Avatar
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    Quote Originally Posted by Beagle View Post
    Power companies are trading on yield. Interest rates lower for longer = higher prices for power companies. Also longer term power futures have moved up materially in the last year and profits are also up. I would have said $3.30-$3.50 a year ago as the trading range but time has moved on, along with profits and long term power generation futures and with it the share price. Those wanting yesteryear prices probably won't be owning the gentailiers in the foreseeable future so will miss out on good reliable safe yield, its as simple as that. Nothing wrong whatsoever with the gross yields of MEL, GNE and CEN in my opinion even at the current share prices, happy holder of all 3.
    Quote Originally Posted by couta1 View Post
    Some things cant be explained other than irrational exuberance IMO stocks like this and CNU are hugely overpriced and just waiting for a big thumping. PS-Even the divvy yield is currently nothing special. PPS- Best left alone, once again IMO.
    See above posted early March. Important to understand that we have moved into a situation where interest rates are the lowest in our lifetime and are likely to stay at ultra low level's for the foreseeable future. If you have a look at the bond market yields for safe senior debt you'll see yields typically around 3%.
    Against this backdrop the gross yield of a company like MEL which by my estimate inclusive of partial imputation credits is about 5.5%, (given its safe renewable utility status) makes an excellent bond proxy and will see many investors chasing very safe reliable yield doing quite well. I don't share your view on this one and am a happy holder of this GNE and Contact. The price of these utility companies is perfectly logical as risk averse investors chase solid dependable very low risk returns that will safely weather any possible exogenous shocks or any possible recession.
    Last edited by Beagle; 21-05-2019 at 08:35 AM.
    Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.
    Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine

  6. #1806
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    Quote Originally Posted by Beagle View Post
    See above posted early March. Important to understand that we have moved into a situation where interest rates are the lowest in our lifetime and are likely to stay at ultra low level's for the foreseeable future. If you have a look at the bond market yields for safe senior debt you'll see yields typically around 3%.
    Against this backdrop the gross yield of a company like MEL which by my estimate inclusive of partial imputation credits is about 5.5%, (given its safe renewable utility status) makes an excellent bond proxy and will see many investors chasing very safe reliable yield doing quite well. I don't share your view on this one and am a happy holder of this GNE and Contact. The price of these utility companies is perfectly logical as risk averse investors chase solid dependable very low risk returns that will safely weather any possible exogenous shocks or any possible recession.
    Not for me I dont like the PE ratios and I can get a far superior yield from my HLG holding.

  7. #1807
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    Quote Originally Posted by couta1 View Post
    Not for me I dont like the PE ratios and I can get a far superior yield from my HLG holding.
    Yes, the yield for HLG may be better, however I certainly would be concerned about my capital compared with the power companies. But then, i'm not a fan of retail companies. To many variables that are hard for them to control, let alone the fashion component.

    Having said that, I'm not buying any at the moment having got into them at much lower prices.
    Last edited by RTM; 21-05-2019 at 09:08 AM. Reason: Addition

  8. #1808
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    Quote Originally Posted by RTM View Post
    Yes, the yield for HLG may be better, however I certainly would be concerned about my capital compared with the power companies. But then, i'm not a fan of retail companies. To many variables that are hard for them to control, let alone the fashion component.

    Having said that, I'm not buying any at the moment having got into them at much lower prices.
    I'm not concerned at all using their track record as a measuring stick and they are the best of breed in their operating space. PS- I would buy these under $3.40.

  9. #1809
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    Quote Originally Posted by couta1 View Post
    Not for me I dont like the PE ratios and I can get a far superior yield from my HLG holding.
    I don't see it as a one or the other situation mate. I hold both.
    Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.
    Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine

  10. #1810
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    Quote Originally Posted by Beagle View Post
    I don't see it as a one or the other situation mate. I hold both.
    You know how big my HLG holding is I dont need to hold both. PS-Diworsification is not for me and has cost me serious coin over the last few years.
    Last edited by couta1; 21-05-2019 at 09:30 AM.

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