MCY Mercury NZ ( MRP Mighty River Power)

[sharer]

Why not hold all three? They are very diverse.

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

I agree with your suggestion Axe, broadly for the three main reasons you list.
Although i continue to disagree with the Nats program of asset sales, & still consider the false economic reasoning offered by Key etc wrong & wilfully stupid, the political fact was that they were determined to do the whole thing, our pathetic system of government meant there was no way to stop them, and by differing mechanisms in each of the three floats investors have achieved much better yields than any bank (or as far as i know industrial bonds now on the market) are offering in at least the next 5 years, so it makes simply pragmatic sense to invest in each of the three electricity floats, for varying reasons.

How long to hold for is a separate calculation now for each of them. Their relative weighting in the portfolio also requires calculation, and willingness to rebalance sometimes.

Disc: Now holding MRP, MEL, & GNE, and now working on my exit strategy (possibly medium-term) for each of them; considering longer term hold also possible (esp MEL).

[sharer]

Why not hold all three? They are very diverse.

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

I agree with your suggestion Axe, broadly for the three main reasons you list.
Although i continue to disagree with the Nats program of asset sales, & still consider the false economic reasoning offered by Key etc wrong & wilfully stupid, the political fact was that they were determined to do the whole thing, our pathetic system of government meant there was no way to stop them, and by differing mechanisms in each of the three floats investors have achieved much better yields than any bank (or as far as i know industrial bonds now on the market) are offering in at least the next 5 years, so it makes simply pragmatic sense to invest in each of the three electricity floats, for varying reasons.

How long to hold for is a separate calculation now for each of them. Their relative weighting in the portfolio also requires calculation, and willingness to rebalance sometimes.

Disc: Now holding MRP, MEL, & GNE, and now working on my exit strategy (possibly medium-term) for each of them; considering longer term hold also possible (esp MEL).

[sharer]

sorry about duplication, seems due to site malfunction. Now i can't delete it ...

[GTM 3442]

Why not hold all three? They are very diverse.

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

I do (or will) hold all three, as well as TPW, KCE, and CEN, in rough relationship to their generating capacity.

The strategy is based on the assumption that the electricity market will turn a profit and pay me a dividend.

And on the assumption that if one company has a bad year, another company will have a correspondingly good year. For example, low lake levels in Taupo with high lake levels in the South Island are good for MEL, but bad for MRP.

Time will tell.

[mouse]

I do (or will) hold all three, as well as TPW, KCE, and CEN, in rough relationship to their generating capacity.

The strategy is based on the assumption that the electricity market will turn a profit and pay me a dividend.

And on the assumption that if one company has a bad year, another company will have a correspondingly good year. For example, low lake levels in Taupo with high lake levels in the South Island are good for MEL, but bad for MRP.

Time will tell.

But if limited funds apply, as in my case, then you do have to pick winners and losers. The two best power companies seem to me to be Mighty River and Meridian. They provide a geographical spread of generation. Meridian is particularly brilliant due to having Manapouri which is very underutilized at present. Get rid of the smelter and sell the power to the highest bidder.

[GTM 3442]

But if limited funds apply, as in my case, then you do have to pick winners and losers. The two best power companies seem to me to be Mighty River and Meridian. They provide a geographical spread of generation. Meridian is particularly brilliant due to having Manapouri which is very underutilized at present. Get rid of the smelter and sell the power to the highest bidder.

Hi mouse,

"Good things take time"

Just because I have a strategy doesn't mean I have to implement it all at once!

The smelter ? All that capacity from Manapouri suddenly available and looking for a home? Sounds like a recipe for a price war to me!

Thank you very much, but no. Although I suspect that my strategy could leave me "well positioned". . ..

[RTM]

Nice operational report by MRP this morning. And hopefully this weather system will start the replenishment of Lake Taupo.
https://www.nzx.com/companies/MRP/announcements/249587

[mouse]

Help Needed. I am a small investor, with 1,600 Mighty River shares, bought at $2.50 each, total $4,000.
I also have 3,600 shares in Meridian, bought on hire purchase, $3,600 down and $1,800 in 12? months. But full dividends now. So the total cost really is $5,400.
We then come to comparing apples and apples. Both are power companies. One lot of shares cost me $4,000. The other lot $5,400.
Mighty River cost, $4,000. Dividend paid March 2014, $174.20 cash in the bank.
Meridian, cost $5,400. Dividend paid April 2014, $136.44 cash in the bank.
So. Meridian has cost more than Mighty River, yet the dividends are less. More Mysterious is the fact that MRP shares have lost value since their float, but Meridian have seen their share price increase.
Snoopy, have you any ideas why? Or anyone else? Should I sell Meridian, at a profit, and Buy MRP? Or just float along?

[percy]

Both are now in an uptrend.[The trend is your friend].
Sit back and watch your profits,and dividends grow.

[iceman]

Both are now in an uptrend.[The trend is your friend].
Sit back and watch your profits,and dividends grow.

Are you saying mouse is well positioned ? I hold all 3 in fairly equal weighting and am happily holding for the long term, subject to Government policy changes of course.