GNE - Genesis Energy

[Beagle]

2028? of top my head and yes would be a loss in revenue but on the other side they wouldnt be left selling gas for a loss in the wholesale market
Actually consensus is for them to increase div to .17c for 2016

Honestly who knows for sure if they'll still be here in 2028 ? I reckon just take the divvy yield at face value and enjoy the natural hedge it provides against your power bill.

[bull....]

Bull

A naive question from a relatively new investor

at the dividend yields shouldn,t the SP be at least $2.50?

My opinion of course, Based purely on div yields I would think more than 2.50 to bring into line with other gentailers but that is looking at the company from a very small perspective and I guess will only happen if genesis run there business well.

Things to watch are there market share they have lost a hell of lot of customers in the last year mainly to un competitive pricing in the regions not the main centres ( my gut tells me they did this to fatten there margins to meet propectus forecasts) but i guess jenny shipley would know better than me lol.
Also there operating costs are high so more work is needed on this front, if they can balance these to things there FCF which is already good will be fantastic so maybe we can get our higher share price and even higher divs.

[penn]

Thanks for your thoughts.
-Morningstar Recommendation GNE

- Hold

-Valuation: $1.80

If this goes to Reduce (at the next full moon) Is it likely to have a negative reaction on the SP?

[Tomtom]

Thanks for your thoughts.
-Morningstar Recommendation GNE

- Hold

-Valuation: $1.80

If this goes to Reduce (at the next full moon) Is it likely to have a negative reaction on the SP?

From previous observations when Morninstar reduce their rating the net result is a rise in shareprice. It's interesting to read the analysis but that doesn't negate the need to DYOR. There is always too much temptation for analysts to conform to the prevailing view of other analysts. It's the CARE principal at work.

[Arbroath]

From previous observations when Morninstar reduce their rating the net result is a rise in shareprice. It's interesting to read the analysis but that doesn't negate the need to DYOR. There is always too much temptation for analysts to conform to the prevailing view of other analysts. It's the CARE principal at work.

Morningstar have a shocking track record in my opinion. I've lost count of the number of bad calls they've made. Just recently said NZO was overvalued and whadaya know they do a 15c capital repayment and announce Tui is outperforming. Shares up 10% to now be 30% over MS valuation.

If GNE go to 2.50 MS will have egg on their face yet again. Pretty sure they put about 1.25 valuation on MELCA and where are they now. They also think FRE were only worth about 4.50 from memory and they've got to 5.60 as profit improves - I'd love someone from MS to cherry pick some of their good calls so we could at least give them a fair crack as all I can think of is there bad calls.

[goldfish]

Do the opposite of morningstar and youll be a rich man. They get about 90% wrong from what i can see. Id be embarrassed to work there.

[Arbroath]

Do the opposite of morningstar and youll be a rich man. They get about 90% wrong from what i can see. Id be embarrassed to work there.

Haha. Exactly. My portfolio MS would value about 25-30% less than market currently. So I'm up that 30% as all holdings less than 2 years (AIR, FRE, MELCA, MRP, THL, GNE). MS don't have to account for all there poor calls.

[Kirk]

Does anyone use https://www.macroaxis.com/? Are they any good?

[Beagle]

Plenty of eager punters chasing yield and huge amounts of room for this puppy to run despite recent strong gains. $2.47 still gives a gross return of 9% at 16 cps with full imputation credits, gross divvy 22.22 cps.

[bull....]

Plenty of eager punters chasing yield and huge amounts of room for this puppy to run despite recent strong gains. $2.47 still gives a gross return of 9% at 16 cps with full imputation credits, gross divvy 22.22 cps.

The yield even looks more juicy after European Central Bank President Mario Draghi hinted as to the possibility of further aggressive stimulus measures and hit back at claims of dissent at the Bank last night.

With low rates to remain for a long time wonder how long it the yield on genesis will remain this good