GNE - Genesis Energy

[xafalcon]

Lake Onslow pumped hydro is officially cancelled according to the National-ACT coalition agreement. Terrible decision for NZ Inc, but as a shareholder I expect to be rewarded as future profits are no longer in jeopardy

[Bobdn]

Great news for the country. Billions saved.

GNE is down a lot over the last year - almost 10 per cent ytd. I have 1100 shares in Genesis so every cent move means I'm either up or down $11. I think my maths checks out but I'm happy to be corrected. It's stressful so I try not to look at the price too much.

[bull....]

wow big drop in dividend 20% downward revision

[alokdhir]

Here we will go 5% down SP ...Not holding ...W69 SP target on horizon $ 2.20 or less !!!

[winner69]

Here we will go 5% down SP ...Not holding ...W69 SP target on horizon $ 2.20 or less !!!

Need to revise the 220 down to 190 odd on the reduced divie

Carnage

[alokdhir]

Need to revise the 220 down to 190 odd on the reduced divie

Carnage

U keep changing your mind mate ...just like broker's estimates which keep going down when stocks slide ...lol

I fully agree if dividend support gone then SP gone too

PS : Expert advise given million times here ...never buy a stock in a downtrend unless its MFT ...lol

[kiwikeith]

Need to revise the 220 down to 190 odd on the reduced divie

Carnage

It will be interesting to see how the share price reacts. Based on the 18.6 c per share dividend over the last 12 months the shares were yielding 7.4% fully imputed. The 14 cents per share dividend forecast is a 5.9% yield which I assume will also be fully imputed. (All numbers based on yesterday's close of 237c). I imagine the market did not see the 18.6c per share as sustainable so some of the dividend cut may already be priced in.

[mike2020]

Had a small holding. Moved it to tra after last dividend. Thanks to all for the insight.

[xafalcon]

After reading their presentation, I'm not thinking it is all bad for shareholders

Yes, dividend is reducing which is a negative

But, the retained profit is being plowed back into fast turnaround projects that will generate increased revenue

And Huntly, as I have long said, is and will be the glue holding NZ electricity generation together (now that Lake Onslow is dead). All the renewable electricity in the world doesn't help if the wind isn't blowing or the sun isn't shining

Meanwhile, interest rates are set to fall worldwide, making to reduced dividend a better investment choice

The key aspect that needs to happen is to arrest the falling SP. A big dividend is great, but if the SP falls it is a false return. An increased focus on growing renewables is a step in the right direction. But I am scratching my head as to why the Huntly battery isn't being installed sooner

[workingdad]

Interesting read from GNE CEO. Lake levels low and pricing for first half of next year climbing, the need for Huntly to support network demands will only increase and he talks about their share price relative to other gentailers.

I still think GNE is undervalued at present and intend to keep nibbling away on some low days. They heading in right direction with increasing renewable generation, under National oil and gas including Kupe will benefit. Like it or not it’s rolling blackouts or gas fired support ex Huntly.

https://www.nzherald.co.nz/business/genesis-boss-malcolm-johns-warns-of-risks-in-power-system/YTBHLR2C3BBSTP3Y7ZAR7GRU6A