MEL - Meridian Energy

[Stranger_Danger]

What a load of rubbish most investors wont know if they have a full allocation until after the offer close's.

Not if you have a firm allocation via your broker.

[Xerof]

Not if you have a firm allocation via your broker.

You can still be scaled by up to 20% on a firm allocation, after the bookbuild.

[Daytr]

If you think its efficient to push power the length of the country where the demand is then by all means be my guest. Put it this way if Tiwai didn't exist, is that where you would build a new power station?

[QUOTEhowever the Government is irresponsible to float such an asset that is so reliant on another redundant one.
]

That depends on the assumption that loss of the subsidised Tiwai contract would be detrimental to Meridian as distinct from its effect on the NZ economy. We've seen good arguments made here that it would be the thermal generators such as Genesis that would be impacted as the cheaper Meridian Manapouri (hydro) power became available to the wider market. All depending on completion of the scheduled Transpower upgrades of course.[/QUOTE]

[CAM]

If you think its efficient to push power the length of the country where the demand is then by all means be my guest. Put it this way if Tiwai didn't exist, is that where you would build a new power station?



That depends on the assumption that loss of the subsidised Tiwai contract would be detrimental to Meridian as distinct from its effect on the NZ economy. We've seen good arguments made here that it would be the thermal generators such as Genesis that would be impacted as the cheaper Meridian Manapouri (hydro) power became available to the wider market. All depending on completion of the scheduled Transpower upgrades of course.

[/QUOTE]

It's not efficient.... But do you really think they will build a new power station near Auckland ?

[Stranger_Danger]

Your broker firm allocation can still get scaled after the book build ring your broker if you don't believe

Yep I know. But the scaling, I believe, has to be pro rata.

If you've had a firm allocation on a substantial amount, they can't just say "we gave you too much" when compared to someone else. They're going to have to scale everyone at the same percentage, up to 20% as you say.

Given the amounts involved, I think significant scaling at this point is highly unlikely - this is a big float for the market to absorb

[GTM 3442]

It's not efficient.... But do you really think they will build a new power station near Auckland ?[/QUOTE]

New Zealand's deep-pocketed conservation industry will not allow further large-scale electricity generation projects to proceed anywhere, CAM.

This seems to me to be something of a conundrum, as it is unclear where they will get the electricity needed to power their new, modern, clean, green, electric vehicles.

Time to eat another tin of baked beans and hook up the fart tube ?

[Joshuatree]

Morning star has a fair value of $1.75.

[CJ]

It's not efficient.... But do you really think they will build a new power station near Auckland ?

of course not because it would have to be fossil fuel. Geothermal in the central north is the closest.

Re dams, the next ones to be built will be for irrigation.

I see more micro generation in the future - solar or small gas (where the heat can be utilised as well)

[BlackCross]

Morning star has a fair value of $1.75.

"The [Meridian] retail offer capped price of $1.60 is a modest discount to our fair value estimate [of $1.75 a share]," he said.
"We generally prefer to buy stocks at a larger discount to fair value and in Meridian's case, this would be around $1.50.

[CJ]

they have been trying to build an irrigation dam in Hawkes Bay for 15 years and are still trying to get past the Greenies.

exactly - a sign of things to come. My point was we need more irrigation before we need more power.