MCY Mercury NZ ( MRP Mighty River Power)

[robbo24]

What's this? MRP bouncing off the MA30 and shooting through the MA100?

Latest political polls might have something to do with it

BEAST MODE ACTIVATED?

Good call Robbo, still going!

[Snow Leopard]

Well much to my surprise I have a few MRP shares sitting in the shoe box in the corner looking a little unloved.
If I ever come up with a good reason for why they are here (short term rising price and volume probably) I will let you know.
If they resume their decline I will shoo them out.

Best Wishes
Paper Tiger

So they have been sufficiently good (up over 7% in less than 3 weeks) that they are now allowed to sleep at the end of the bed.

Best Wishes
Paper Tiger

[Snoopy]

So they have been sufficiently good (up over 7% in less than 3 weeks) that they are now allowed to sleep at the end of the bed.

Many MRP shareholders seem hard to please. Despite less than favourable weather conditions Doug Heffernan and the team have kept their dividend and profit projections on track. MRP is still NZs best power company, even if it was not the best value when most of us joined the share register.

Of course we foundation shareholders have an excuse for buying too high. We didn't know what the price of the shares would be when we signed up. I like most others assumed the big boys would be sensible with their tendering price for shares. A pity then than John and Bill reserved a large basket of the issue for their overseas institutional mates who dumped the shares within weeks of listing, whereas genuine NZ shareholders were scaled back. I would argue that if the NZ investors were genuinely placed at the front of the queue, as we voters were lead to believe, a large part of the subsequent sell off would not have happened and the MRP share price would be higher than it is now.

Shareholders will have an opportunity to vote for the retiring to be rehired board members or not at the next AGM. I would encourage them to do so if they believe Doug Heffernan and the team have done a good job. If you don't like the MRP price action since listing though, there is another vote you can cast in September which will bring to account those responsible for it.

SNOOPY

[macduffy]

there is another vote you can cast in September which will bring to account those responsible for it.

In which case, it might be a good idea to first sell all your power co. shares!

[RTM]

In which case, it might be a good idea to first sell all your power co. shares!

Not so sure Macduffy. Seems to me that the Greens / Labour are to blame for the languishing of the share prices of the power companies. As well as ensuring that NZ Inc got a much lower price for them. Bringing those folk to account in September might well address the SP of those companies.

[fish]

Snoopy I don't own mrp shares but do own contact and will be getting genesis.
The reason is simple-mrp relies on the Waikato river system for most of its generation-great when its wet but Waikato has a drought..
Taupo is nearly at its lowest limit.
I expect a prolonged period of high prices and I don't know how mrp will cope with this lack of generation and potentially having to buy power.
I know they coped last year-but taupo is near its low 2 months earlier this year and rain looks unlikely to save them.
Just my observations-I don't have the research you will have done-but what plans have they to cope with a severe Waikato drought ?

[Snoopy]

Snoopy I don't own mrp shares but do own contact and will be getting genesis.
The reason is simple-mrp relies on the Waikato river system for most of its generation-great when its wet but Waikato has a drought..
Taupo is nearly at its lowest limit.
I expect a prolonged period of high prices and I don't know how mrp will cope with this lack of generation and potentially having to buy power.
I know they coped last year-but taupo is near its low 2 months earlier this year and rain looks unlikely to save them.
Just my observations-I don't have the research you will have done-but what plans have they to cope with a severe Waikato drought ?

Fish, MRP have brand new geothermal station just come on line which provides more of a buffer on those low Waikato river levels. There isn't the same lack of water in the South Island hydro system. Now Transpower has smartened up the interisland link, so more South Island power can come across the cook strait cable to meet that North Island demand. At the moment MRP still have a gas power station as well, Southdown near Auckland. Reading between the lines in the MRP interim report, there is a hint it might be mothballed. MRP would hardly do that if they perceived a serious long term power shortage for themselves would they?

I take on board your point that lake Taupo being near its lows is not ideal for MRP. I do acknowledge that in the worst case MRP may suffer some pain. I don't believe it is a long term issue for MRP when viewed as a multi-year investment though.

SNOOPY

discl: hold MRP

[mouse]

Fish, MRP have brand new geothermal station just come on line which provides more of a buffer on those low Waikato river levels. There isn't the same lack of water in the South Island hydro system.
I take on board your point that lake Taupo being near its lows is not ideal for MRP. I do acknowledge that in the worst case MRP may suffer some pain. I don't believe it is a long term issue for MRP when viewed as a multi-year investment though.

SNOOPY

discl: hold MRP

MRP is near to its customers. It does not have to maintain a very large canal system to move water around the McKenzie Country. Nor does it have to rely on the Cook Straight cable. I do not believe that Lake Taupo will be half-full for ever. Weather is whether? MRP have large Geothermal capacity which they are using as base load at present.But if we get plenty of water, it could switch base load to hydro.
My view is that it is prudent to hold both Meridian and MRP. I am very negative about Genesis.

[axe]

MRP is near to its customers. It does not have to maintain a very large canal system to move water around the McKenzie Country. Nor does it have to rely on the Cook Straight cable. I do not believe that Lake Taupo will be half-full for ever. Weather is whether? MRP have large Geothermal capacity which they are using as base load at present.But if we get plenty of water, it could switch base load to hydro.
My view is that it is prudent to hold both Meridian and MRP. I am very negative about Genesis.

Why not hold all three? They are very diverse.

The generation mix.
The geographical split.
The generation / retail split.

[Harvey Specter]

Hmmm ... More than half (56%) of connections are in the 4+2. Hmmm ... That 4+2 are heavily weighted towards urban areas (70% of all urban throughout NZ) that are experiencing the big price risesNope Xerof - "[An] Inconvenient truth for the pro-asset sales cryers" methinks

I missed this discussion last month.Lets not forget that Wellingtons Electricity is controlled privately ...by the CHINESE Winston would not be happy.