MEL - Meridian Energy

[Sideshow Bob]

Are these figures for real. P E 50, EPS .095, Yield 5.1%. (5.1% of $4.80 = .24 c)
How can this be?

Fundamental

P/E	50.000
EPS	$0.095
NTA	$1.720
Gross Div Yield	5.130%
Securities Issued	2,563,000,000

These are off the NZX, right?

Without referring to annual reports...….MEL would pumping out huge free-cashflows (EBIT - tax + depreciation - change in working capital - capex). This would account for their dividend % compared to the EPS, and the PE ratio (which would be say $4.80/$0.095).

NTA would be based on the book value of their assets, and largely irrelevant. Not sure what the depreciation rate would be but those dams should be there for a long, long time - with not a huge amount of capex. Gives a value of about $4.4b for their assets - the replacement value would be much, much, much more than that.

[stealthmaster]

double rate cut causing big increases?

[stealthmaster]

Looks like this going over $5 soon!

[sb9]

Looks like this going over $5 soon!

Yes, it was always on just matter of when not if.

[couta1]

Looks like this going over $5 soon!

Chasing yield at any cost is a recipe for a severe skunking at some point. PS-Learnt this lesson myself a few times.

[Joshuatree]

Go the chasers, triple bag plus holder here sitting comfortably.

[Beagle]

Chasing yield at any cost is a recipe for a severe skunking at some point. PS-Learnt this lesson myself a few times.

I don't think a case of any cost mate. 10 year Govt stock rate is only ~ 1.2% and interest rates around the world are looking like staying ultra low for as far as possibly foreseeable, perhaps more than a decade. In that context ~ 5% gross yield from an ultra low risk utility is pretty good.

[couta1]

I don't think a case of any cost mate. 10 year Govt stock rate is only ~ 1.2% and interest rates around the world are looking like staying ultra low for as far as possibly foreseeable, perhaps more than a decade. In that context ~ 5% gross yield from an ultra low risk utility is pretty good.

Not for me I'm very happy with my only current divvy stock being HLG with avg price of $3.50.

[Beagle]

Not for me I'm very happy with my only current divvy stock being HLG with avg price of $3.50.

I am getting this strong sense of Deja vu...so had a look back and sure enough we've discussed this before, see posts 1805 and 1806. We'd both be forgiven for having forgotten though, there's been a heck of a lot going on since May.

[couta1]

I am getting this strong sense of Deja vu...so had a look back and sure enough we've discussed this before, see posts 1805 and 1806. We'd both be forgiven for having forgotten though, there's been a heck of a lot going on since May.

Groundhog day mate and yep a lot has gone on, still a 13% plus gross divvy yield is worth comparing more than once.