MEL - Meridian Energy

[IAK]

$4.09? Someone is keen on these today. Ex-dividend on 28 March.

Disc. Holding (biggest)

[bull....]

$4.09? Someone is keen on these today. Ex-dividend on 28 March.

Disc. Holding (biggest)

on fire , i had to drop a few for gne as i think its lagging the others so will play a big catchup soon

[BlackPeter]

While I sort of understand how Infrastructure shares (and particularly Gentailers) ended up where they currently are ... am I wondering how this is all going to end?

MEL sells currently for $4.08 per share and has a forward PE of 35 (backward 39). Not really one of these hyped up growth shares either with a revenue forward CAGR of 1.5. Hmm.

I guess I get that for Gentailers it is not the earnings, but the cashflow (and the divvie) which count, and sure - dividend return is still 4.8% (presumably imputed). Better than most bonds currently availalbe. But than, if we assume that what goes up must come down - people will need to accumulate their divvies for a long time before these will make good for the capital loss if the SP only drops down to the analyst consensus of $3.40.

What did I miss - why is it currently a good idea to buy MEL for $4.08? Or is this going to be the all time high?

[horus1]

And there has just been a price review of the Electricity Sector, which said nothing much is wrong. These shares are ripping off the domestic customers . It will end in a crash ,. The Govt is a conflicted party.

[boysy]

bond proxy as long term rates trend down this is seen as a safe haven. We are not in usual times one has to remember ....

[Beagle]

And there has just been a price review of the Electricity Sector, which said nothing much is wrong. These shares are ripping off the domestic customers . It will end in a crash ,. The Govt is a conflicted party.

Factually incorrect. The electricity sector review showed domestic customers power prices are 20% lower than the OECD average. Maybe you should do a market comparison and see if you can get a better deal if you are feeling aggrieved by your current electricity and plan ? Easy enough to do here https://www.whatsmynumber.org.nz/

Many people own these as a bond proxy and its all about super safe yield. We could be looking at another decade if not more of ultra low interest rates. Utilities rallied strong on Wall St on Friday. I expect the Gentailiers to continue their upward trajectory from here to even higher levels as people continue to invest for safe yield that's immune to any possible recession and / or claw-back under the Reserve Bank's open banking resolution.

[voltage]

I am looking to park some money and using the electricity sector as a bond proxy. Is meridian the best of the best in this sector?

[Beagle]

I am looking to park some money and using the electricity sector as a bond proxy. Is meridian the best of the best in this sector?

GNE has the highest yield by a comfortable margin. I bought more very recently so back my opinion up with action. I am looking for more on any possible slight dip as they still trade cum an 8.45 cps divvy, ex date 2 April to the best of my knowledge. I also like and hold MEL, CEN and a LOT of ARG as bond proxies.

[voltage]

Thanks Beagle. Craigs rate Meridian and Contact as their top stocks in this area. About GNE, would the price drop after 2 April since it has paid the divvy? As bond proxies would it be true to say that electricity stocks have more growth therefore a better buy than the property stocks?

[horus1]

Beagle.That is the sort of analysis used by the Industry and is misleading. If you compare those countries with a lot of Hydro the figures are nowhere as good. I am with Flick ,the best, and effectively buy some of my sons 15 KW of solar. Read Bertram's articles ,the Wolack and AK uni reports , to see the roarts going on. It will not last. The generator should be seperated from the retailers and be investigated by the Commerce Commission. The EPC was never going to do the correct things .