GNE - Genesis Energy

[alokdhir]

Jeez - GNE share price mid 280's. It was over 3 bucks last week ....and heading Craig's target of 360 or whatever it was

What's up

It went ex divd of 8.9 cents mate and with market forces came down a bit ...nothing alarming at the moment but with new green bonds offering around 6.5% secure interest ....I think GNE will loose its high yield appeal slowly ....why take equity risk when u can get CEN bond for 6.5 % or more !!!

[Nor]

Jeez - GNE share price mid 280's. It was over 3 bucks last week ....and heading Craig's target of 360 or whatever it was

What's up

Well I thought with rates going up div payers were supposed to come down. Didn't seem to happen in NZ, at least with those I follow. Maybe it's happening.

[percy]

It went ex divd of 8.9 cents mate and with market forces came down a bit ...nothing alarming at the moment but with new green bonds offering around 6.5% secure interest ....I think GNE will loose its high yield appeal slowly ....why take equity risk when u can get CEN bond for 6.5 % or more !!!

I see it the other way.
Why take the bond risk.?
World wide energy prices rising meaning GNE will be able to increase their largely imputated divie,which over time will see their share price nearer Craigs' target price.

[iceman]

It went ex divd of 8.9 cents mate and with market forces came down a bit ...nothing alarming at the moment but with new green bonds offering around 6.5% secure interest ....I think GNE will loose its high yield appeal slowly ....why take equity risk when u can get CEN bond for 6.5 % or more !!!

Not sure you'll get "CEN bond for 6.5% or more" but yields are certainly starting to become more attractive. This arrived in the mailbox this morning :

"Contact Energy Limited - Bond Offer (CEN070)

Contact Energy Limited (Contact) has launched an offer of up to $200 million (with the ability to accept oversubscriptions of up to an additional $50m at Contact’s discretion) of 5.5-year unsecured, unsubordinated, fixed rate, green bonds (CEN070).

Contact is a diversified and integrated energy company, focusing on the generation of electricity and the sale of electricity and gas in New Zealand. The proceeds of the offer will be used by Contact for the financing and refinancing of renewable generation and other eligible green assets in accordance with the terms of Contact’s Green Borrowing Programme Framework.

All New Zealand resident clients of Jarden Direct can participate in the Offer. Allocations may be subject to demand and scaling.

• Final bids for the Offer are due by 9:00am Friday, 30th September 2022

• Indicative issue margin: 1.30% to 1.45% per annum*

• Indicative issue yield: 5.79% to 5.94% per annum*

• Minimum interest rate: 5.45% per annum

• Issue date: Tuesday, 11 October 2022.

• Standard brokerage fees will apply.

Further details of the Offer can be viewed on the website under New Issues.

*Please note that the margin and yield rate ranges are indicative. The margin may be adjusted by the issuer before the offer closes. The yield includes the interest rate swap rate which is variable and set after the offer closes.

If you would like to participate in the Contact Energy Limited - Bond Offer (CEN070), you can submit your bid online or call us on 0800 805 777 before 9:00am Friday, 30th September 2022. "

[alokdhir]

I see it the other way.
Why take the bond risk.?
World wide energy prices rising meaning GNE will be able to increase their largely imputated divie,which over time will see their share price nearer Craigs' target price.

Maybe in medium term that possible as todays announcement of GNE about Market Security Options is talking about high energy prices coming to NZ sooner then latter ...so they can end up cashing their coal stocks at good prices ...after that its just cost plus similar margins mostly

Also I noted with great concern recent mini UK budget additional subsidy provisioning of 60 Billion Pounds for energy bills hardship mitigation ...if that needs happen in NZ then Govt may end up nationalisation of these companies again as they cant subsidise consumers by not increasing prices while inputs keep rising

As in NZ peak power rates decide overall margins and which vary a lot during peak demand ...thus Govt controls / intervention will be first step before any budget allocations are done ....hopefully we will not reach that levels of distress like UK etc

[winner69]

It went ex divd of 8.9 cents mate and with market forces came down a bit ...nothing alarming at the moment but with new green bonds offering around 6.5% secure interest ....I think GNE will loose its high yield appeal slowly ....why take equity risk when u can get CEN bond for 6.5 % or more !!!

Jeez alokdhir ..now 280 and that’s down 23 cents in a week.

OK divie was 8.9 cents ….where’s the other 14 cents gone

GNE not safe as houses (ie defensive) after all?

Can’t be rising rates because I’m told by experts that that relationship has broken down

What’s up mate?

[alokdhir]

Jeez alokdhir ..now 280 and that’s down 23 cents in a week.

OK divie was 8.9 cents ….where’s the other 14 cents gone

GNE not safe as houses (ie defensive) after all?

Can’t be rising rates because I’m told by experts that that relationship has broken down

What’s up mate?

Maybe me selling out ...lol

Time to get into growth stocks ...like FPH / MFT / SUM / EBO / IFT

PS : Why U think I will have faintest idea how market SP works when I need to ask u about HGH hypothetical SP which u promised U will let me know after asking that question to your latest FA .....I am still waiting mate while it keeps making new 52 week lows every second day ...

[percy]

Maybe me selling out ...lol

Time to get into growth stocks ...like FPH / MFT / SUM / EBO / IFT

PS : Why U think I will have faintest idea how market SP works when I need to ask u about HGH hypothetical SP which u promised U will let me know after asking that question to your latest FA .....I am still waiting mate while it keeps making new 52 week lows every second day ...

Take care.
Other than IFT your other stocks' charts look unhealthy.
Saver with a good utility,such as GNE.?

[alokdhir]

Take care.
Other than IFT your other stocks' charts look unhealthy.
Saver with a good utility,such as GNE.?

Thanks ! Yes I agree with your charts advise ...but sometimes U need to take a call before charts actually start showing promise ...like u took on HGH recently while charts were looking awful . TA with FA works better then only TA ...your wise words !!

[winner69]

At this rate GNE share price might fall to that 250 I mentioned a while ago

and if that relationship with the 10 year govt resumes migth even see 220 odd ..... but no way will that happen eh