GNE - Genesis Energy

[bull....]

yes was very unhappy with the way they allocated shares for this IPO, hence I wont particpate in IPOs now for fear of not getting a worth while quantity and having my money locked up earning nothing.

[Beagle]

Fair to say everyone who applied through the public pool, (myself included) was very disappointed with their allocation. That needs to be viewed in the context of the fact that the IPO was very attractively priced and was the only gentailer from memory to have a price set, (rather than a book-build pricing structure). There has been the opportunity to top up since the IPO and I have and the gain since the IPO has been good. Bonus shares should be viewed as exactly that, a bonus. Speaking of bonus's, maybe we will see $2 today

[bull....]

with the sharp rises for the other power companies reducing there div yield , makes genesis look even more attractive on div yield now - wonder how long before the div yield catchs up with the other power co,s

[Joshuatree]

Is it possible for ComCom to step in and regulate and stuff it up like they have with chorus and Vector?

[Harvey Specter]

Is it possible for ComCom to step in and regulate and stuff it up like they have with chorus and Vector?

Unlikely since their is competition with the other generators and retailers.

Potentially there could be some changes in the generation space but nothing as drastic as what Labour/Greens were proposing.

[Beagle]

I think the retail market is reasonably competitive now. I agreed to a 3 year price locked deal with Just Energy earlier this year at 17.9 cents a kwh (power supply in Auckland). I like supporting new small and efficient players as it forces the big companies to be more honest with their pricing. A few years ago when Vector was price gouging on their lines prices we were paying close to 25 cents a kwh.
With deals like that around I see no basis for ComCom to get involved in retail supply pricing. What they did with Vector was correct in my view and is sufficient to protect consumer's from that unrealistic monopoly supplier.

[Joshuatree]

Thanks guys. My memory is getting better and better every day:0 (Glass half full kinda day).

[horus1]

Shouldn't the oil price affect this share price or is it just Div Yld driving it

[Beagle]

Company reiterated their comfort with 2015 IPO guidance at the ASM today. Companies with defensive properties and high dividend yields are in strong demand.
Guidance is for 2015 dividends of 16 cps fully imputed so yield at $2.00 is exactly 8% net or 11.11% gross after accounting for 28% imputation credits. (8/0.72)
I would think the directors are well aware of the current oil price.

[bull....]

Shouldn't the oil price affect this share price or is it just Div Yld driving it

they have hedging in place for a good % of sales, also the nz dollar fall offsets some of the oil price fall so net net it probably isnt a big deal at the moment