MCY Mercury NZ ( MRP Mighty River Power)

[Antipodean]

Although this is possible, it is unlikely, it was probably the remainder of an outstanding order

Fair point on that example. Though there are large number of small trades today raising the possibility some are not what they seem.

[stoploss]

Fair point on that example. Though there are large number of small trades today raising the possibility some are not what they seem.

Hi Antipodean .
A fund manager or hedge fund that is looking to buy or sell large amounts of shares can do the following . Key in an order to buy/ sell say 100,000 shares . This is one order however it will be released in small parcels to hide the activity .So when you think it is 99 shares and the guy is an idiot ... it could be 99 of 100,000. You will find some books about this if you are interested , Flash Boys comes to mind , although I have not read this.

[mouse]

I bought some at $2.16. MRP then dropped to below $2.00. So how on earth do you spot the bottom of the market, unless you are Madoff. Or is that Madeoff? I suppose I will watch the market and miss the bus.

[axe]

I bought some at $2.16. MRP then dropped to below $2.00. So how on earth do you spot the bottom of the market, unless you are Madoff. Or is that Madeoff? I suppose I will watch the market and miss the bus.

Does it matter if you don't get in right at the bottom of the market? How much does 16CPS of downside compare against 100+CPS of upside MRP saw from the bottom.
As long as you have rightly a picked a stock that is trading at a current discount to where it will be in the future, set stops where you are comfortable, stick to them and things might go okay
There was a poster on here who went in very heavy into MRP @ 1.90. (Belg i think ?)
They are no longer on ST. I assume they no longer on ST because they sold all their MRP @ $3+ and are now a tropical beach somewhere drinking the proceeds.

Did you still hold your MRP that you get at 2.16 when it went to 3.00?

[mouse]

Does it matter if you don't get in right at the bottom of the market? How much does 16CPS of downside compare against 100+CPS of upside MRP saw from the bottom.
As long as you have rightly a picked a stock that is trading at a current discount to where it will be in the future, set stops where you are comfortable, stick to them and things might go okay
There was a poster on here who went in very heavy into MRP @ 1.90. (Belg i think ?)
They are no longer on ST. I assume they no longer on ST because they sold all their MRP @ $3+ and are now a tropical beach somewhere drinking the proceeds.

Did you still hold your MRP that you get at 2.16 when it went to 3.00?

No. I sold. But not at $3.00. I held on to around 1,000 MRP. But they are now more or less free shares.
I agree with you, spotting the bottom to buy or the top to sell is impossible. But I am very disappointed not to have held off buying until $1.90! Life can be hard.

[BlackCross]

MornignStar has an accumulate ($2.90) recommendation this a.m.

[trader_jackson]

https://www.nzx.com/files/attachments/223025.pdf

Great stuff I think, what is not so great is why the share price is low given such a strong start and slowing (almost stopped) customer churn... (I think its amazing the share price is below the $3 mark...)

Look forward to hearing other peoples thoughts

[trader_jackson]

https://www.nzx.com/files/attachments/223142.pdf

Another impressive presentation

[mouse]

I have a minor problem about Mighty River. Latest price is around $2.75 per share. Earnings per share appear to be 3.4 cents. So, being particularly stupid, I divided the cost per share by the earnings per share. Leaving out a few decimal places, it came to 81. Surprisingly, that is more years than I have had birthdays. Only a few, it must be admitted, but I have to hold MRP for 81 years for its earnings to have paid back its price.
Price to Earning ratios could be between 15 and 25 say at present. Depends upon the company. But 81???????????
Can anyone explain it to me. I must emphasize that I do not have lots of brain, so a simple explanation would be appreciated.
On a 20 P/E ratio, MRP is worth 69 cents?

[silverblizzard888]

I have a minor problem about Mighty River. Latest price is around $2.75 per share. Earnings per share appear to be 3.4 cents. So, being particularly stupid, I divided the cost per share by the earnings per share. Leaving out a few decimal places, it came to 81. Surprisingly, that is more years than I have had birthdays. Only a few, it must be admitted, but I have to hold MRP for 81 years for its earnings to have paid back its price.
Price to Earning ratios could be between 15 and 25 say at present. Depends upon the company. But 81???????????
Can anyone explain it to me. I must emphasize that I do not have lots of brain, so a simple explanation would be appreciated.
On a 20 P/E ration, MRP is worth 69 cents?

You're very right this does not make sense at all, but not as bad as you think either. I will make one correction for you though, 3.4 cents is not correct figure because that is profit attributed to the share after all expenses including non cash, which included impairment, impairment is technically a non cash flow expense and doesn't really affect the running of the business. Impairment was 130 million so add that back into your incoming profits and you actually have about 161 million after tax or 11 cents per share in earnings. For me revenue dropped, profits dropped, so its not quite risk free. They are performing better now but it does not convince me to feel safer here than any other stock.

I could go on the market and find other much better dividend yield stocks available. Tourism Holdings, Heartland, Skellerup, Air NZ and so on. What the market feels is different here is a solid power company that has stability and being partially government owned has a safety towards their regulation bias. Basically people are valuing this as nearly risk free dividend because of its so called solid operating base. I do not feel that way and don't normally express so, but I read your statement and thought it might help you in understanding it more with my views. Hope that helps