GNE - Genesis Energy

[trader_jackson]

I think we may be at the bottom... GNE dividend yield should be very high this year, at least double what you would get in a bank at current prices, so I'm not sure why people are so turned off by it (Greece deal reached, low interest rates here to stay, china stock market stabilizing, Tiwai point likely to stay open)

[Hoop]

What's with GNE? After a healthy gain post election it breaks down, and shows off the major supports and Fibs like a good stock, then says f'that and bombs to 100% of the low after the IPO. But wait there's more, now it's in the opposite space as blue sky .. is that blue abyss?

Careful folks, there's no price precedent here or below and no-one knows how low this could go. Tomorrow could be the bottom, or not. What we do know from excellent FA posts is that the lower it does go, the better the yield is. Genesis isn't going out of business any time soon is it?

But here's a falling knife if you ever saw one.

disc: not holding but watching closely.

Attachment 7468

meh...gone past 100%
Hmmm... 2 more fib points then the golden ratio fib at 161.80339%

[Crackity]

meh...gone past 100%
Hmmm... golden ratio at 161.80339%

and golden shower if you bought at $2.30 round about now.

Or or is that just too non pc?

[Hectorplains]

and golden shower if you bought at $2.30 round about now.

Or or is that just too non pc?

... and if you're chasing the bottom, you'd best have an effective prophylactic...

[Hoop]

The Old Stock Market proverbial...those who pick bottoms end up with sh!tty fingers.

[Crackity]

A fecophilial discussion thread tonight - good to know we are a broad minded bunch

[fish]

... and if you're chasing the bottom, you'd best have an effective prophylactic...

...no more cracks please
Seriously it looks as if its bottomed out so i bought more and more today.

Probably I am in too deep but yield just too attractive-gross about 14%-8 cent dividend plus imp credits in 3 months

[Crackity]

I've got the wrong member name to keep going with this discussion anyway Fish!

Agree on yield - very attractive but I do also note the previous discussion on unsustainability of full imp credits....( think Roger pointed this out)

[xafalcon]

I think this is a forex driven situation. Electricity generation & usage in NZ is fundamentally sound as it is in developed countries (electricity transmission cost is a different story). Once the NZ$ stabilises (and then probably rebounds), the foreign investors will return. At the moment they are taking a beating on forex & voting with their feet. But the NZ$ always over-reacts, and this is just another example. Once international investors take stock of the NZ economy and realise that 2.8% growth is still better than almost everywhere else in the developed world, the situation will redress. As an example NZ$ dairy prices on GDT are actually higher now than they were in December due to the lower exchange rate. However this isn't the doom & gloom the newsrooms like to report. Then consider how the lower NZ$ will effect all those industries that were doing quite well at US$0.80, especially tourism and meat. So the re-balancing is already underway, the currency will stabilise and likely rise, and the foreign investors will think a 10% return plus potential forex gain is very nice thank-you

[fish]

I share your views xafalcon.
All the negatives people keep throwing up are unlikely to affect the electricity industry.
They have a captive population that has a hunger for the product.
Whatever happens to say dairy farming/timber they still have to pay their power bills regardless of commodity pricing.
Tax/imputation credits are a real bonus-and crackity although full imputation credits might not happen with every dividend this effect will be minimal-at worse it will not be lower than 80% of full imps-and this is yet to happen-and maybe a one off if it ever does happen .
Will be interesting today to see if the clouds of doom start to lift.