GNE - Genesis Energy

[PSE]

Kiwis on average move house every 7 years...that's how we make money...Solar power for domestic use remains utterly uneconomic...a waste of money...in Oz however...being almost totally fossil fuelled...its a boom industry...,why we do not embrace nuclear power astounds me...I may be wrong here ..but its my understanding that the 'damage done" to our environment by fossil fuels far out plays the effect of any negative influence of Nuclear power.Im probably wasting my breath here...as you probably know this already........................................... ...Can anyone tell me why the Greens are not embracing Nuclear power..??????

Firstly all politicians are morons, especially Gareth Hughes based on my dealings with him - the other greens too.
Nuclear power is a bad idea for NZ because one power station would be too large for our grid too handle, the largest should be around 250MW, that's why there are four 250MW rankine units at Huntly.
Secondly, nuclear plants are no good on the pacific rim of fire as we have earthquakes and tsunami. Think Fukushima.

[pietrade]

Firstly all politicians are morons,.................Secondly, nuclear plants are no good on the pacific rim of fire as we have earthquakes and tsunami. Think Fukushima.

Without even considering what would be done with the waste product? 'Smoke & mirrors'
can't hide it after all.

[Jantar]

.....
Nuclear power is a bad idea for NZ because one power station would be too large for our grid too handle, the largest should be around 250MW, that's why there are four 250MW rankine units at Huntly......

This is the number 1 reason why nukes are not suitable for NZ. The smallest economically commercial reactors are currently around 1000 MW with the most economic units around 1200 MW. Candu do have some smaller units like those at Darlington (880 MW and Bruce B (820 MW). However these are economic in that they produce weapons grade plutonium as well as electricity.

The problem with large units is that as NZ is a stand-alone country, with no links to other generation sources, we must carry 100% of the reserve requirement for our grid internally. That means that for a single 1000 MW nuke we would also need 1000 MW of fast acting partially loaded spinning reserve (PLSR) that could fully replace the lost energy of a tripping in less than 6 seconds. To manage that we would need over 3000 MW of fast reacting hydro or gas fired peaker plant in the same island as the nuke. We do not have sufficient demand to maintain that 24/7.

Smaller nuke plants are available, but these are generally for a specific purpose such as submarine propulsion, and not for commercial electricity production. Thorium reactors are being developed that may suit us sometime in the future.

[macduffy]

As far as I know, Genesis have no plans for a nuclear power plant.

Now, can we get back to the subject of this thread?

[skid]

As far as I know, Genesis have no plans for a nuclear power plant.

Now, can we get back to the subject of this thread?

Yes ,we can get back to the subject of nuclear power in about 24,000 years (about 8 times the time since Jesus) which is the half life of nuclear waste since we are not to great at long term planning anyway...

[huxley]

Back over $1.90

[Xerof]

Yep, good test of that support level at $1.80ish. Nibbled at a few myself, as stated at the time.

Had a back test but couldn't break support and has now put in a higher low. Good sign of a trend change for now.

W69 will tell me there's a GAP to be filled near 2.10, but I've seen it.....

[Traderx]

Gross yield currently over 11%. Mortgage interest rates <5%. Anyone tempted to take out $100k loan for the purposes of GNE investment? (I'm not recommending this - far too risky for me but the differential is getting large..)

Big event this week being the Tiwai window. Although MEL is the primary party in a lot of ways it is GNE that may be the most affected. i.e through possibly being the supplier in part or whole of the residual 172MW or via accelerated closure of rankine units in an exit scenario (unlikely IMHO).

[Beagle]

Gross yield with my medium term estimate of their ability to impute dividends to a level of 60% of normal imputation credits, (see previous comments on this and why), amounts to 16 /.832 = 19.23 cents per share and this assumes they are able to maintain dividends of 16 cps per annum in the medium term. On a $1.84 SP that's a gross yield of 10.45%. People can borrow for 2 years at 4.99% so that's a carry yield of 5.46%.
(Note, this is in no way intended to infer that I recommend risking the security of your family home for a commercial investment...I just wanted to point out the risks and correct yield and risk to the yield as I see it).

[Poet]

Gross yield with my medium term estimate of their ability to impute dividends to a level of 60% of normal imputation credits, (see previous comments on this and why), amounts to 16 /.832 = 19.23 cents per share and this assumes they are able to maintain dividends of 16 cps per annum in the medium term. On a $1.84 SP that's a gross yield of 10.45%. People can borrow for 2 years at 4.99% so that's a carry yield of 5.46%.
(Note, this is in no way intended to infer that I recommend risking the security of your family home for a commercial investment...I just wanted to point out the risks and correct yield and risk to the yield as I see it).

I guess that the interest on the borrowings would be tax deductible against the dividend income, so maybe a slight increase in effective carry return