oh i was meaning if ya pay 1.60 an instos pay 1.8 then potentially if the shares trade at 1.8 you have made 20c + divs hope i got it right this time haha long week
My understanding is price cap $1.6 only for retail investors who participting in the IPO which hold the stock up to 18 months, if you buy shares on the market then you have to pay second installment same as institutions.
oh i was meaning if ya pay 1.60 an instos pay 1.8 then potentially if the shares trade at 1.8 you have made 20c + divs hope i got it right this time haha long week
yes you are right if you hold the stock up to 18 months and market price is $1.8 at that time.
Our friend Chris Lee reckons the govt has been screwed good and proper by the greedy money men with these IPOs
Firstly they ensured the MRP one was not very successful ... made a small loss on that .... but ensured the bigger prize in Meridan is even cheaper now.
Good point ....Meridan gone from what most said was a $6 bill co to something like $4 bill ...... at a time that the NZX is up zonks. He said he going to buy just to some overseas insto getting their mits on the hige discount
You need to go and find his article if interested .... he doesn't like this sort of stuff being quoted or linked
NZ is one of the most politically stable countries in the world.
Once Labour discover how much money the goverment will lose in income from altering power charges they will rethink thier great idea's.
According to all the value investment books I have read recently buying a power generation company at 9x ebita is a screaming buy.
I know there are alot of value investors on this site so I am keen to hear your opinions.
Opinion !!.. It stacks up...
Another reason.. We have a very good membership here from all cross sections of the investment community..
Nobody is really nay saying it..
Back to my opinion.. It stacks up.. Ticks all of my boxes..
I guess the main attraction for me is the high dividend yield (artificially elevated due to partly paid nature) in the first 18 months - otherwise it is a dull utility just like many listed peers and PE multiples are similar too(high). So I am going to invest purely for income and I don't expect it to be a multi-bagger! I will be applying for my wife as well even though she does not want it!
Sorry to hear that gv1, long term i hope it pans out for you.Luckily there will be independent research avail on the NZX on the 30th this time to help folks make an informed decision. From what i read on MRP on share trader and discussions with friends ,MRP was just too expensive and with the blackout stopping brokers from giving unbiased research and advice folks just had to go with their "neutral" brokers who were making commisions out of that float.
I am sure there are far better long term buys in the NZX or ASX than these Govt controlled Utilites
Meridian forecasts a net profit of 187.9 m [7.3 cents/share] to June 2014 & will distribute 144% of these profits. A gross yield of 13.4% [page 9 of the prospectus] assuming full imputation credits---contradicting a note on page 9 saying future divs will be only partially imputed.
For the year to June 2015 an annual div of 9.5% is planned [plus some imp credits]--a distribution of 140% of profits.
How sustainable is all this?
How will the company grow with outgoings like this?
And there is the strong possibility of a Labour/ Greens Govt dictating in the future
Not a great picture for a healthy investment which shows share growth & a sustainable return
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Originally Posted by bull....
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