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Thread: Meridian Float

  1. #61
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    Quote Originally Posted by blackcap View Post
    I can see the emergence of a secondary market where you offer your installment reciepts on a delayed delivery basis to take advantage of the price difference.
    on a formal (ie. an actual market set up or instrument offered by an institution) or informal basis (just between friends)?

    How would this be done - forward purchase agreements.
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  2. #62
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    I am not sure if it could be done on a formal basis as there "may" be legal difficulties. I guess some kind of CFD or some similar tool could be utilised. Between friends could be cumbersome also. I quess the possibility does exist (need someone or broker with a creative mind) with these kind of shennanigans.

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    I'm not sure that the MRP sweetener is really significant. With my patriotic hat on I got $15k (6000) MRP. For my trouble I will get 200 more shares after two years. This really isn't enough to influence decisions for me one way or another. 200 @ $2.20 (say) = $440 = 7 cents per share. Maybe I'm looking at this incorrectly ? But in any case.....I guess the damage is done...so I am holding.

    Quote Originally Posted by The BOWMAN View Post
    One of the issues for MRP is the IPO sweetener. Investors who got in after IPO will not have any benefit. This created the situation of over-inflated IPO subscription and subdued demand afterwards I think, which probably explains how it has performed so far. This time with Meridian, do the investors buy after IPO still get the "pay later" benefit? Is there any other sweetener that will differentiate before and after IPO purchases?

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    Quote Originally Posted by RTM View Post
    I'm not sure that the MRP sweetener is really significant. With my patriotic hat on I got $15k (6000) MRP. For my trouble I will get 200 more shares after two years. This really isn't enough to influence decisions for me one way or another. 200 @ $2.20 (say) = $440 = 7 cents per share. Maybe I'm looking at this incorrectly ? But in any case.....I guess the damage is done...so I am holding.
    I think it's actually a 40:1 share bonus, right? So a 4% bonus issue to 24 month holders. Which means you get 150 bonus shares.

    At the end of the day, IPO buyers are still getting their pre-IPO scheduled dividend yield (and indications it will be upgraded further).

    What's to complain about?

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    Quote Originally Posted by robbo24 View Post
    I think it's actually a 40:1 share bonus, right? So a 4% bonus issue to 24 month holders. Which means you get 150 bonus shares.

    At the end of the day, IPO buyers are still getting their pre-IPO scheduled dividend yield (and indications it will be upgraded further).

    What's to complain about?
    "New Zealand Applicants who continue to hold their Shares in the same registered name for a
    period of 24 months will be entitled to Loyalty Bonus Shares based upon the ratio of 1 for 25, up
    to a maximum number of 200 Loyalty Bonus Shares for each New Zealand Applicant . The Loyalty
    Bonus Shares have the effect of providing New Zealand Applicants who retain their Shares for 24
    months with additional Shares for no further cash investment (if certain conditions are met)."

    Conditions above. Not complaining. Just not sure that this meagre inducement really inflated the IPO at all.

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    Quote Originally Posted by RTM View Post
    Not complaining. Just not sure that this meagre inducement really inflated the IPO at all.
    I think it will have less effect that different final instalment prices, not just becaue the amount could be bigger (20c/1.80 = 11% compared to 4%) but it is more explicit since cash will need to be outlaid as apposed to just receiving it.
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    Quote Originally Posted by RTM View Post
    "New Zealand Applicants who continue to hold their Shares in the same registered name for a
    period of 24 months will be entitled to Loyalty Bonus Shares based upon the ratio of 1 for 25, up
    to a maximum number of 200 Loyalty Bonus Shares for each New Zealand Applicant . The Loyalty
    Bonus Shares have the effect of providing New Zealand Applicants who retain their Shares for 24
    months with additional Shares for no further cash investment (if certain conditions are met)."

    Conditions above. Not complaining. Just not sure that this meagre inducement really inflated the IPO at all.
    1 for 25... Ah yes that's right, or 4 for 100, or 4%...

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    Quote Originally Posted by snapiti View Post
    me thinks that before anyone considers stagging the meridian IPO that one must consider that you have to supply a name, address and nz ird number prior to purchase that means it would be very easy for the tax man to cross reference those holders/staggers details, who come off the regestry with in a short time period to take quick profits, and their ird records.
    Computershare could provide this info for any share quiet easily so no difference.

    Given the number of IPO's this year, I wouldn't be suprised if IRD requested info from computershare for everyone who bought into the bought and sold an IPO share within 6 months, cross reference and filter for those who did it on every IPO (attack first), most IPO (next round of investigations once they get more money from government based on their success), more than one IPO (a letter will be sent saying they will pursue if you dont disclose).

    Tehy did a similar thing with the Land Transfer Office.
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    Quote Originally Posted by snapiti View Post
    me thinks that before anyone considers stagging the meridian IPO that one must consider that you have to supply a name, address and nz ird number prior to purchase that means it would be very easy for the tax man to cross reference those holders/staggers details, who come off the regestry with in a short time period to take quick profits, and their ird records.
    What 'Quick profits' ? I'm expecting the sp to drop initially - a la MRP. Also, it's October when the DJIA and S&P500 typically take a bit of a dive. Nov is more likely to be the time to pick em up at fair value.
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    Quote Originally Posted by snapiti View Post
    gosh do you work for IRD cause what you have stated is exactly how they would do it.
    NO - But I understand that is how they did it for people who did qccik flick properties. Each year, they get more money in the budget to pursue given the success they are having.
    Last edited by CJ; 24-09-2013 at 02:57 PM. Reason: Spelling
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    Give me regular dividends any day of the week...

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    Quote Originally Posted by robbo24 View Post
    Give me regular dividends any day of the week...
    At a price of $1.60, this seems to be the cheapest power co out there with less downside from Tiwai (provide transpower pulls finger) but big downside from the Greens policy.

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    Quote Originally Posted by CJ View Post
    At a price of $1.60, this seems to be the cheapest power co out there with less downside from Tiwai (provide transpower pulls finger) but big downside from the Greens policy.
    Demand for power even without Tiwai must be on a strong growth curve with all the new power conections required for irrigated dairy farm conversions alone. No dought the new City of Christchurch will need a bit as well .
    SCOTTY

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    Quote Originally Posted by CJ View Post
    At a price of $1.60, this seems to be the cheapest power co out there with less downside from Tiwai (provide transpower pulls finger) but big downside from the Greens policy.
    A share price is neither cheap nor expensive until one takes into account the number of shares or more precisely the forecasted earnings per share, in other words the expected price to earnings ratio...considering also debt to equity ratio, book value, risk profile, etc.

    e.g. just because this IPO is priced 'cheaper' than MRP does not mean that it better value. CJ - I'm surprised - given your guru status, I figured you would've been around long enough to know that.

    BC
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    Quote Originally Posted by Bobcat. View Post
    A share price is neither cheap nor expensive until one takes into account the number of shares or more precisely the forecasted earnings per share, in other words the expected price to earnings ratio...considering also debt to equity ratio, book value, risk profile, etc.

    e.g. just because this IPO is priced 'cheaper' than MRP does not mean that it better value. CJ - I'm surprised - given your guru status, I figured you would've been around long enough to know that.

    BC
    Thats not what I meant. I meant at the price cap of $1.60 compared to say $1.80 that instos may have to pay. The yeild at $1.60 is much higher than the other power cos or infrastrcutre cos, with the exception of Chorus.

    Haven't looked at P/E. Will do that next.
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