Contact Energy - CEN Chart

[iceman]

NZ High $11.10 closed $10.60.................. Aus closed higher but 22k volume

And on a huge turnover of $ 54.5 M. Blackrock certainly read this right and probably knew what was coming when they started buying in large a few months ago !

[kiora]

https://www.goodreturns.co.nz/articl...for+7+Jan+2021

[Cricketfan]

Up another 5% this morning. This seems a bit crazy, surely it's going to go back to more sensible levels eventually? Thinking of selling, but I don't have a good history when it comes to selling - in most cases I'd be better off if I just held.

[winner69]

Up another 5% this morning. This seems a bit crazy, surely it's going to go back to more sensible levels eventually? Thinking of selling, but I don't have a good history when it comes to selling - in most cases I'd be better off if I just held.

Guru Mark i that goodreturns piece

“The utilities are not being driven by decisions made by active investors, they are driven by a flow of money from clean energy ETFs,” said Mark Lister, head of private wealth research at Craigs Investment Partners.

Lister said that with long term interest rates moving higher, utility stocks - often bought for their high dividend payout - should be coming down in price as investors rotate towards more speculative stocks.

Instead, shares in yield-heavy Meridian jumped 10.2 percent to $9.40 bringing its total gain just this week to 34 percent. In the past six months, the stock has more than doubled in value.

“You should never ever see a utility go up 15 percent in a day. These are safe, predictable boring companies that shouldn’t behave like that,” Lister said.

But these are strange times indeed so anything could happen

[alex f]

The US dollar is tanking, even more money being printed. (Hence the Crypto demand) COVID free NZ and div paying utilities are in demand and they are businesses isolated from global factors. A good place to park US$. Those are my thoughts. Maybe other utility stocks will rise

[bung5]

The temptation was too great and I have had to sell due to the great price on offer. Will have to find a more boring place for a dividend

[Checkmate]

Surely people are now only buying this because of FOMO the Div yield isn’t that great anymore.. which was the main attraction previously. Only room to drop from here.

[Snoopy]

And on a huge turnover of $ 54.5 M. Blackrock certainly read this right and probably knew what was coming when they started buying in large a few months ago !

From the Wikipedia page on Blackrock:

https://en.wikipedia.org/wiki/BlackRock

"On January 14, 2020, BlackRock CEO Laurence Fink declared that environmental sustainability would be a key goal for investment decisions."

"BlackRock's largest division is iShares, a family of over 800 exchange-traded funds (ETFs) that comprises more than $1 trillion in assets under management. iShares is the largest provider of ETFs in the U.S. and in the world. "

I take it from this that the open ended iShares 'global clean energy fund' that is buying up shares in Meridian and Contact is part of Blackrock. From p58 AR2020, Blackrock appears as a significant holder of 38.710m shares. Contact was notified of this on 20th April 2020 as that holding represented 5.390% of the company. I can find no reference to substantial shareholders in AR2019. So I assume that Blackrock held less than 5% of the CEN shares on issue on that reporting date.

The iShares Global Clean Energy ETF appears to have started in January 2008, so it has been going for 13 years. I don't know the historical composition of the fund. I also don't know what kind of 'Chinese walls' are set up between individual fund managers within Blackrock. But it seems most plausible that Blackrock from last year knew exactly what would happen to CEN shares in the new year, because it is they themselves who are causing this sudden CEN price surge!

SNOOPY

P.S. Today's share market disclosure shows Blackrock holding 13.345% of all Contact Energy shares on issue.

[dreamcatcher]

P.S. Today's share market disclosure shows Blackrock holding 13.345% of all Contact Energy shares on issue.

Increased from 12.2% = 8.22m shares probably more future buying to come.........same for MEL

[Scrunch]

Increased from 12.2% = 8.22m shares probably more future buying to come.........same for MEL

The daily chart looks like a switch was flicked at 1pm NZ time. CEN was about $11.00 at the time and up another 40c. By 2.41 as I write this, the price had collapsed back to $10.27 and looks on-track to fall further. Have blackrock perhaps stopped buying for a little bit?