MCY Mercury NZ ( MRP Mighty River Power)

[banter]

Estimated current year 'normalised' PEs and long term growth factors for some power companies:
MRP 24.1 6%
TPW 19.2 7.5%
GNE 17.4 4%
MEL 10.7 8%

For MRP I thought underlying earnings for 2015 were 10.5c; MRP's forecast for 2016 indicated (to me) 11.5c, times 24.1 = 2.76
Divide the first number by the second to get the PEG ratio, which some say should be about 1, not much more, and definitely not 4.6

Based on that I sold MRP a week ago at about $2.50, and bought some AIR, TWR and STU - so am not feeling too bright either.

[xafalcon]

Having a very good run over the past 2 weeks, up over 15%

[mouse]

Having a very good run over the past 2 weeks, up over 15%

But the fact remains that the P/E is, or was, 81. Must be worse now. The other generators do not have anywhere near 81 as a P/E ratio.
Surely earnings of 3.4 cents a share are serious? Or are accounts just doodlings on paper?

[Snow Leopard]

But the fact remains that the P/E is, or was, 81. Must be worse now. The other generators do not have anywhere near 81 as a P/E ratio.
Surely earnings of 3.4 cents a share are serious? Or are accounts just doodlings on paper?

The trick here would be to read the accounts for yourself.

Best Wishes
Paper Tiger

[xafalcon]

Quite right Paper Tiger. Most/all the generators appear to work off paying a high proportion of their FCF as their dividend

[trader_jackson]

MRP should continue the march into the 2.90's where I believe its fair value (at this point in time) is.

It might not have the 'yield' Genesis has, and it might not have the 'big' factor Meridian has, but MRP has superior management, some fantastic assets, and to top it off a steady customer base with great cashflow.

And in case you haven't picked it up yet mouse, P/E is not a good judgement for power companies at all

[Zaphod]

This announcement was interesting. The GM Digital Services role might provide the company with some interesting opportunities for efficiency gains and new innovate products to help customers manage their power utilisation. A similar strategy is being employed by AirNZ.

MRP
11/12/2015 15:08
OFFICE
NOT PRICE SENSITIVE
REL: 1508 HRS Mighty River Power Limited (NS)

OFFICE: MRP: Leadership team changes

Leadership team changes

Mighty River Power today announced changes to its lead team focused on
delivering greater product and service innovation to its customers.

The changes include two new roles on the lead team, Chief Marketing Officer
and GM Digital Services, reporting to Chief Executive, Fraser Whineray.

Mr Whineray said the complementary roles would deliver greater alignment in
becoming a truly customer-centric organisation, with digital at its heart.

"There are a large number of competitors in New Zealand's small market, in
addition to competition from global tech giants. In that context we're a
comparatively small company and therefore must be astute in seizing the
opportunities and responding to the challenges that lie ahead."

He said the leadership changes were based on a review of the optimal
structure to build on the Company's existing strengths.

"I was fortunate to be able to make some relatively modest changes to the
lead team structure in the transition into the CEO role more than a year ago.
We've since refined our approach to how we want to deliver value to our Kiwi
customers and owners, and this structural change is part of contributing to a
broader innovation platform."

The existing roles of GM Customer and GM Strategy & Communications have been
disestablished.

James Munro, the current GM Customer, has decided to pursue new opportunities
outside of Mighty River Power and has elected not to apply for either of the
newly-created roles. He will be leaving Mighty River Power in early 2016. Mr
Whineray thanked James for his significant contribution to the success of the
Company's retail business over the last 7 years.

Mr Whineray said a process for the recruitment for the new roles would begin
immediately and a transition to the new structure is expected in early 2016.

ENDS

For further information:

David Glendining
Head of Communications
T 0272 105 337

Tim Thompson
Investor Relations/Treasury
T 0275 173 470
End CA:00275016 For:MRP Type:OFFICE Time:2015-12-11 15:08:01

[trader_jackson]

Finished on $2.885, up 3.8%?

If its doing this well on such a bad day... can't wait till a good day comes along!

Anyway.. sarcasm aside, what caused it to have such a metric rise? the industry as a whole was fairly mixed...MEL went down 3.8%, GNE down 1.6%, CEN up 1.1%.

[Hectorplains]

Finished on $2.885, up 3.8%?

If its doing this well on such a bad day... can't wait till a good day comes along!

Anyway.. sarcasm aside, what caused it to have such a metric rise? the industry as a whole was fairly mixed...MEL went down 3.8%, GNE down 1.6%, CEN up 1.1%.

One 200+K trade at 5pm at $2.885 otherwise mostly around the 2.78 mark for the day.

[Snow Leopard]

One 200+K trade at 5pm at $2.885 otherwise mostly around the 2.78 mark for the day.

Totals traded today:
Volume: 1,469,545;
Value: $4,143,957;
VWAP: $2.820.

Closing Auction:
Volume: 247,156;
Value: $713,045;
VWAP: $2.885.

Totals today excluding closing auction:
Volume: 1,222,389;
Value: $3,430,911;
VWAP $2.807.

A New Years Resolution: teach people not to ignore the facts.

Best Wishes
Paper Tiger