Purchase price doesn't look that cheap to me, but also dones't look terribly expensive either... 5% EPS accretion is not to bad, also interesting [but not surprising] that they are looking at a bond offer
Looks like a good acquisition to me. 5% EPS accretive is not to be sneezed at. Makes common sense for them to leverage their increased stake in Kupe into selling more LPG to small business and retail customers.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
On fire today. Anyone care to speculate why ?
Dividend yield?
Originally Posted by trader_jackson
Market just beginning to price in upside bonus of recent gas acquisition probably.
Agree with trader jackson but also worth noting Reserve bank have said they're on track to keep interest rates and current level's for quite some time and I also note that GNE as announced in their most recent quarterly operating report are adopting Fly Buys with effect from this month. So far they said they had received 60,000 expressions of interest in joining because of Fly Buys...quite an interesting bit of anecdotal evidence on the power of that reward scheme. Disc: Recently bought back in a modest stake for strong ongoing dividend yield. The acquisition of Nova energy's LPG business makes compelling common sense on the back of increasing their stake in Kupe. Might as well sell those increased Kupe reserves at retail rather than wholesale !
Last edited by Beagle; 12-05-2017 at 12:02 PM.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
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Originally Posted by ScrappyO
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