MEL - Meridian Energy

[boysy]

Results out this thursday the rain of late seems to have shored up lake levels right across meridians portfolio

https://www.meridianenergy.co.nz/about-us/our-power-stations/lake-levels

What are peoples thoughts on anticipated results out this thursday and anticipated divi and outlook ?

[Joshuatree]

Thanks boysy, in the nick of time by the looks re lake levels rising. No idea its a stock i tend to drop in the bottom drawer and forget about; lazy i know and not a wise investment tactic.

[boysy]

Looks like snow storage is also up strongly in the past few weeks with 85% of mean and well into the 25%ile -

https://www.meridianenergy.co.nz/about-us/our-power-stations/snow-storage

Its clear the southern generators are back sending > 350 MW north on the HVDC following recent rainfall in the south.

http://www.em6live.co.nz/PlanningRegion.aspx?planningregion=uni

[fish]

Looks like snow storage is also up strongly in the past few weeks with 85% of mean and well into the 25%ile -

https://www.meridianenergy.co.nz/about-us/our-power-stations/snow-storage

Its clear the southern generators are back sending > 350 MW north on the HVDC following recent rainfall in the south.

http://www.em6live.co.nz/PlanningRegion.aspx?planningregion=uni

Wholesale power prices have dropped but still remain high.I guess this could be negative for Genesis and positive for contact.
I still dont expect meridian will have a good annual result and wonder if the sp will dive when it is announced .

[boysy]

Looks to be a good result in light of the challenging 2H.

https://www.nzx.com/files/attachments/264259.pdf

[King1212]

Looks to be a good result in light of the challenging 2H.

https://www.nzx.com/files/attachments/264259.pdf

Good for MCY with heavy and wet weather this year????

[boysy]

Look at those spot prices $1000 mwh and Mel sending over 700 MW north they must be making some money good thing it's been raining down south

[fish]

Look at those spot prices $1000 mwh and Mel sending over 700 MW north they must be making some money good thing it's been raining down south

Raining everywhere and cold with increased demand

[boysy]

Well hydrology looking good plenty of rain where it needs to rain in the South Island looks like te anau is full and manapouri and Benmore are close to being full

[boysy]

all lakes now full to overflowing which is reflected by the volume going through the HVDC cable going north around 825MW. Rain really has fallen where it needed to in the past few weeks.

http://www.em6live.co.nz/PlanningRegion.aspx?planningregion=uni

https://www.meridianenergy.co.nz/about-us/our-power-stations/lake-levels

[Jantar]

all lakes now full to overflowing which is reflected by the volume going through the HVDC cable going north around 825MW. Rain really has fallen where it needed to in the past few weeks.

http://www.em6live.co.nz/PlanningRegion.aspx?planningregion=uni


https://www.meridianenergy.co.nz/about-us/our-power-stations/lake-levels
For Meridian, Only Manapouri and Te Anau are full to overflowing, Pukaki is at half full. The other lakes are not storage lakes, but except for Ohau, are just headponds. Ohau is a very small storage lake with high volatility and can be emptied in a few days.

For Contact's lakes, Wakatipu is around 80% full, Wanaka is less than 50% full and Hawea is just under 30% full.

So all are much healthier than 2 months ago, but still a long way to go before being full.

The Clutha River down stream from the lakes is in a level 2 flood, and that is what is pushing the high HVDC transfer

[boysy]

appreciate your input jantar its worth noting that the resivours which are full to overflowing are by far Meridian's biggest resivours being te anau and manapouri while Pukaki is filling fast with benmore close to spilling. It's fair to say meridians lakes have been the major beneficiary of the recent rain.

[Jantar]

appreciate your input jantar its worth noting that the resivours which are full to overflowing are by far Meridian's biggest resivours being te anau and manapouri while Pukaki is filling fast with benmore close to spilling. It's fair to say meridians lakes have been the major beneficiary of the recent rain.
To put it in context, when full: Pukaki holds 6 months storage, Te Anau 1 1/2 months, Manapouri 2 months, Benmore 3 days.

[fish]

For Meridian, Only Manapouri and Te Anau are full to overflowing, Pukaki is at half full. The other lakes are not storage lakes, but except for Ohau, are just headponds. Ohau is a very small storage lake with high volatility and can be emptied in a few days.

For Contact's lakes, Wakatipu is around 80% full, Wanaka is less than 50% full and Hawea is just under 30% full.

So all are much healthier than 2 months ago, but still a long way to go before being full.

The Clutha River down stream from the lakes is in a level 2 flood, and that is what is pushing the high HVDC transfer

Thanks Jantar for this information.
It really helped me to rebalance my portfolio.
Pukaki looks like it is filling and on current trajectory could be full this spring.Then meridian has 6 months supply in one lake

[Marilyn Munroe]

The Bluff aluminum smelter may be changing ownership

http://www.smh.com.au/business/mining-and-resources/british-billionaire-sanjeev-gupta-kicks-tyres-on-rios-aluminium-assets-20171017-gz2jnx.html

Boop boop de do
Marilyn

[bull....]

The Bluff aluminum smelter may be changing ownership

http://www.smh.com.au/business/mining-and-resources/british-billionaire-sanjeev-gupta-kicks-tyres-on-rios-aluminium-assets-20171017-gz2jnx.html

Boop boop de do
Marilyn

mentioned a while ago someone was sniffing around

[boysy]

Would have to think a serious re rate would have to be applied assuming it changes hands and immenant threat of closure is put to one side

[boysy]

So we have a new government which is likely to drive the kiwi lower

Aluminum prices are at three year highs of USD~$2100/ton

Potential purchaser sniffing around

Likely increase in profitability of smelter in light of reduced USD$ wage cost compared to finished product

Would seem to me the worst case scenario of closure of the smelter is looking less and less likely in terms of the above thoughts ?

[rmnz]

Do Labour/Greens have a particularly strong view on the future of the smelter?

[warren]

What a wonderful stock. 7% return (Bank rate about 2.75%) You couldn't build those massive dams for $100 billion today and I have a share in them for $2.92 and a half. i love this share.

[Brovendell]

And they only cost $1.50 at launch.:t_up:

[fish]

And they only cost $1.50 at launch.:t_up:

So much has changed since then.
Tiwai Point looks secure.
Wholesale prices have increased
Supply arrangements with 2 other gentailers should enable them to get better prices.
The potential to increase profits has significantly increased.
Just need a bit more rain!

[boysy]

Should get some decent dumps of rain in parts of the southern hydro catchment over the next few days

http://www.metservice.com/maps-radar/rain-forecast/rain-forecast-3-day

[Sideshow Bob]

Should get some decent dumps of rain in parts of the southern hydro catchment over the next few days

http://www.metservice.com/maps-radar/rain-forecast/rain-forecast-3-day

We need it! We are more in Contact's catchment, but we're starting to get about as dry as a dog biscuit!

[Jantar]

Should get some decent dumps of rain in parts of the southern hydro catchment over the next few days

http://www.metservice.com/maps-radar/rain-forecast/rain-forecast-3-day
Unfortunately it is mainly west of the divide which doesn't help the hydro catchments at all. Some thunderstorms inland, but all they do is redistribute water that is already in the catchments. Flow models are only showing a small incease in inflows and no increase in storage

[Marilyn Munroe]

Unfortunately it is mainly west of the divide which doesn't help the hydro catchments at all. Some thunderstorms inland, but all they do is redistribute water that is already in the catchments. Flow models are only showing a small incease in inflows and no increase in storage

While most of the forecast rain will fall west of the South Island main divide there is more than enough rain overtopping the divide to provide hydraulic energy to spin the turbines.

Spot report. Marilyn was swimming in a surge pool below one of Meridian’s dams yesterday when her jandals floated away after being left at the waters edge. So production is surging.

Boop boop de do
Marilyn

[boysy]

Last 7 days a fair bit of rainfall falling over lake Te Anau & Manapouri

http://www.metservice.com/maps-radar/local-observations/cumulative-rainfall-7-days

Starting to be reflected in a tick up on both lake levels

https://www.meridianenergy.co.nz/about-us/our-power-stations/lake-levels

The next system appears to be headed up the eastern side of the south island on Wednesday and should hit all areas of the southern hydro catchment

[Dassets]

The snow pack is at record lows, 800Gwh below average. The snow has already flowed into the catchments which has kept the lake levels high. Plus the irrigators are using water flat out. There are more outages coming from the thermal guys and others. Thermal generation is going flat tack. Wholesale price ... well guess

[blackcap]

The snow pack is at record lows, 800Gwh below average. The snow has already flowed into the catchments which has kept the lake levels high. Plus the irrigators are using water flat out. There are more outages coming from the thermal guys and others. Thermal generation is going flat tack. Wholesale price ... well guess

Dassets is correct. Check out the snow storage levels. Dire...

https://www.meridianenergy.co.nz/about-us/our-power-stations/snow-storage

[Jantar]

Last 7 days a fair bit of rainfall falling over lake Te Anau & Manapouri

http://www.metservice.com/maps-radar/local-observations/cumulative-rainfall-7-days

Starting to be reflected in a tick up on both lake levels

https://www.meridianenergy.co.nz/about-us/our-power-stations/lake-levels

The next system appears to be headed up the eastern side of the south island on Wednesday and should hit all areas of the southern hydro catchment
Very little rain fell in any of the hydro catchments over the week. What did fall gave a small increase in inflows, but not enough to relieve the current drought. The main reason for the increase in Manapouri storage was the reduction in generation to around 330 MW. Now that Lake Te Anau is above its minimum level Manapouri has increased its generation to 440 MW.

[IAK]

"Low snow-pack levels will affect Meridian Energy's ability to create power"

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11961071

[warren]

Craigs picks for 2018 include "Meridian Energy with its wonderful assets and returning 8.8% "

This must be the most gorgeous share on earth as we go electric cars and electric everything.
$10 a share is inescapable ---- just watch.
Warren B.

[couta1]

Craigs picks for 2018 include "Meridian Energy with its wonderful assets and returning 8.8% "

This must be the most gorgeous share on earth as we go electric cars and electric everything.
$10 a share is inescapable ---- just watch.
Warren B. HaHa, that's got to be the most bullish target this decade. PS-I like the company but my target is a rather bearish $3.15 by comparison.

[Marilyn Munroe]

A market changing event just occurred.

Go to Meridian's web site and the graph for Lake Te Anau. The lake level trace shows an unexpected event.

https://www.meridianenergy.co.nz/about-us/our-power-stations/lake-levels

Hopefully it is just the gauge on the blink.

Boop boop de do
Marilyn

[blackcap]

A market changing event just occurred.

Go to Meridian's web site and the graph for Lake Te Anau. The lake level trace shows an unexpected event.

https://www.meridianenergy.co.nz/about-us/our-power-stations/lake-levels

Hopefully it is just the gauge on the blink.

Boop boop de do
Marilyn

I saw that this morning and thought WTF, who has emptied the lake? Probably have to be a gauge on the blink otherwise we have an unprecedented event on our hands :)

[boysy]

rain clearly having fallen in the right places in the past month or so - how hard will meridian run in the 2H to make up for lower generation in 1H is the question - Currently sending 800 MW north HVDC

https://www.meridianenergy.co.nz/about-us/our-power-stations/lake-levels - Lake Pukaki up about 3m in the past month or so

https://www.transpower.co.nz/system-operator/security-supply/hydro-risk-curves -

'As at 4 March, New Zealand storage and South Island controlled storage is above average for the time of the year. The risk meter for the New Zealand and the South Island is set to Normal.'

[percy]

My divie is in my bank already.
Thanks MEL.

[boysy]

Indeed - and rain continues to fall in the right spots

http://www.metservice.com/maps-radar/local-observations/cumulative-rainfall-7-days

From the latest monthly report it looks as though Meridian are running hard to make up for the 1H generation shortfall. This is seen with the volume of power heading north on the HVDC (during Feb power was heading from north to south on the HVDC).

http://www.em6live.co.nz/PlanningRegion.aspx?planningregion=lni

[IAK]

Good news for Meridian and Southland. Looks like Tiwai Smelter is going to be around for a while yet. NZ Aluminium smelters restarts moth balled potline, signals 32 new jobs. http://www.sharechat.co.nz/article/07862c84/nz-aluminium-smelters-restarts-mothballed-potline-signals-32-new-jobs.html

Interesting take on climate change with aluminium produced in New Zealand using mainly renewable energy, displacing production of aluminium using fossil fuel alternatives overseas.


Disc. long term holder

[sb9]

Good news for Meridian and Southland. Looks like Tiwai Smelter is going to be around for a while yet. NZ Aluminium smelters restarts moth balled potline, signals 32 new jobs. http://www.sharechat.co.nz/article/07862c84/nz-aluminium-smelters-restarts-mothballed-potline-signals-32-new-jobs.html

Interesting take on climate change with aluminium produced in New Zealand using mainly renewable energy, displacing production of aluminium using fossil fuel alternatives overseas.


Disc. long term holder

Yeah, good news for the whole industry in general.

Disc - holding since IPO

[horus1]

But bad news for NZconsumers who are effectively subsidising this

[blackcap]

But bad news for NZconsumers who are effectively subsidising this

Where is the extra Gig per day going to come from? We are sometimes stretched so does that mean wholesale power prices are going up or are we going to fire up some more coal?

[couta1]

But bad news for NZconsumers who are effectively subsidising this No worries, the power review will sort that out.

[horus1]

Looking at the 9 member panel I dont see any one not supporting the present arrangements and independence doesn't seem to me to be having Concept and Lee Wilson ,who have represented the present arrangements for years,on the panel. The gen/retailers have done a great job of stacking it. .

[Jantar]

But bad news for NZconsumers who are effectively subsidising this I am sure that enough new solar will be installed on everyone's' roof to supply the extra at no additional cost. I read on here that that would happen.

[horus1]

Its going in . Increasing mine from 5 to 10 KW and going up to 15 in time . Batteries come later. Doing it ourselves wouldnt touch anybody in the generation side of the industry.

[Hectorplains]

Looking at the 9 member panel I dont see any one not supporting the present arrangements and independence doesn't seem to me to be having Concept and Lee Wilson ,who have represented the present arrangements for years,on the panel. The gen/retailers have done a great job of stacking it. .

* It's an 8 member panel.
* I can't imagine Chetwin supporting the present arrangements.
* Only Roberts and Wilson are clearly aligned to the gen/retailers. 2/8 is hardly stacked - and you'd expect that sector to have a voice too.

[horus1]

There is an xtra member Keith Tempest. That makes 9. Reformed the industry before and that was with 3

[Hectorplains]

There is an xtra member Keith Tempest. That makes 9. Reformed the industry before and that was with 3

Tempest is a 'special advisor' to the panel - he's not on it. I think you're unduly dismissing the abilities of the other panel members. You may want to read the scope for this review also. Alternatively, this summary from Dean (the chair) should negate some of your fears:

The terms of reference are broad and require the review to look at all aspects of theelectricity sector, including technological changes, environmental factors, and whether thesector’s pricing mechanisms are as efficient as they could be. Unlike previous reviews, anadditional key consideration is whether consumers are paying fair prices, and whetherelectricity costs are spread equitably across all consumers. These new aspects of the reviewoffer a valuable opportunity for consumers to express their views about electricity pricesand pricing mechanisms. Significantly, the review will have a strong focus on how the sectorcan be improved for the future, rather than merely looking at what has not been working aswell as it should.

[sb9]

Sp slowly got into the 3s now....tempting to take profit after holding since IPO.

[boysy]

MEL should be in a position due to hydro flows to run generation hard into the start of winter think they can make up a lot of the 1H lost generation ground.

[mshierlaw]

Sp slowly got into the 3s now....tempting to take profit after holding since IPO.

Yes it's tempting. I'm still holding for superior dividend as still in the middle of the capital management program. From the last annual report:

Meridian has also declared a final special dividend of 2.44 cents
per share ($62.5 million) under the company’s five-year capital
management programme to return $625 million to shareholders.
This brings the capital management special dividend declared
in FY17 to 4.88 cents per share, with $312.5 million now distributed
since the capital management programme commenced in August
2015. To date this has all been paid as unimputed special dividends;
however, a buyback remains a consideration.

As always - thanks to John key for this investment.

[IAK]

Might hold on to my Gentailer shares for longer than I anticipated. Doesn't look like solar/batteries will be able to keep up with demand (mainly from EVs).

A major report into New Zealand's energy future finds demand for electricity will double and forecasts electric vehicles will make up 85 per cent of light vehicles by 2050.
https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12056215

[boysy]

You wonder how much MEL are making on the spot market NI prices currently over $5,000 $/mwh they should be able to run generation hard into the end of the financial year with hydro near full and 600 gwh above average hydro storage for this time of year ....

[sb9]

Wow, did I see this close at 3.15 for the day. Must be an all time high I think.
Wonder what and who keeps pushing it up.

[couta1]

HaHa, that's got to be the most bullish target this decade. PS-I like the company but my target is a rather bearish $3.15 by comparison. Posted 4/1/18.

[Joshuatree]

Anyone taking some up for their bond portfolio?. My first thought was buy more shares but our estate has enough already

Quotation Notice: Meridian Energy Limited ("MEL050") Bonds (https://www.nzx.com/announcements/319163)

[Joshuatree]

More details here. BBB+. min rate 4.2%
Meridian Energy launches fixed rate retail bond offer (https://www.nzx.com/announcements/319158)

[peat]

More details here. BBB+. min rate 4.2%
Meridian Energy launches fixed rate retail bond offer (https://www.nzx.com/announcements/319158)

quite a vanilla 7 year bond which is good to see with all those hybrids out there.
4.2-4% about the same as a 5 year TD, but at least there's liquidity.
not that attractive from a interest rate or duration risk reward perspective but it should function like a traditional bond in that the entity is obviously pretty solid

[Joshuatree]

Thanks peat, plain vanilla is great, may take a few (for the estate not me) and top up MEL too cheers JT.

[Onion]

quite a vanilla 7 year bond which is good to see with all those hybrids out there.
4.2-4% about the same as a 5 year TD, but at least there's liquidity.
not that attractive from a interest rate or duration risk reward perspective but it should function like a traditional bond in that the entity is obviously pretty solid

I've just asked for a few of the bonds - diverting some money that was heading to a TD. I'll treat it as a safe place to keep the cash and the possibility of liquidity is attractive.

[fish]

Thanks peat, plain vanilla is great, may take a few (for the estate not me) and top up MEL too cheers JT.

Personally I would diversify risk rather than 2 investments in a SI gentailer.

Strange things are happening in the market-atm spot prices $140 in SI and $1400 in NI

[boysy]

The HVDC cable looks like they are struggling to get the electricity north ....

[Joshuatree]

Personally I would diversify risk rather than 2 investments in a SI gentailer.

Strange things are happening in the market-atm spot prices $140 in SI and $1400 in NI

Thanks and good advice, we have 3 gentailers MEL been the best return atp double bagger plus divs..

[bull....]

Thanks and good advice, we have 3 gentailers MEL been the best return atp double bagger plus divs..

definately the best performing gentailer stock

[limmy]

definately the best performing gentailer stock
Fully Agreed.

[boysy]

MEL seem to be generating hard and the spot prices of late appears to be very high should be able to make up from a slow start to the FY

[Bobdn]

MEL seem to be generating hard and the spot prices of late appears to be very high should be able to make up from a slow start to the FY

It was an amazing morning this morning wasn't it? I see diesel was producing 142 MW at one point which I assume comes from contact's Whirinaki Power Station. Wind was producing close to zero. At one point I think it got up to 1 MW - incredible to think that all 17 of NZ's windfarms lay idle for hours.

I see wind is producing just 1 MW as I type this. The coal burners at the moment at Huntly are producing 159 MW, the poor buggers have barely had a break in the last six weeks where as recently the wind turbines have pretty much been lollygagging around in the sun, acting virtuous, but doing next to no work. Hey at least they look good.

Do you like to read EnergyTrendz? I always find it interesting to see who is producing what (see page two of the link). Yesterday just about everything but the kitchen sink was generating right across the board.

https://www.energylink.co.nz/sites/default/files/Energy_Trendz_Daily_180627_Interim.pdf

[boysy]

Bodn good reading thanks for posting the link interesting pricing dynamic over the last few days considering Hydro storage is at average for this time of the year. Todays pricing action suggests it could be a long hard winter for those paying spot prices but should good for MEL going forward ....

[horus1]

That is what is wrong with the market . It is a rort that diesel is running when there is plenty of water . Clearly the generators should be separated from Retail.

[blackcap]

That is what is wrong with the market . It is a rort that diesel is running when there is plenty of water . Clearly the generators should be separated from Retail.

The thing is though, is there plenty of water? I note the last 2 weeks about 400GW of storage has been lost and we are at about 2,926. If that goes on for 3 or so more weeks we are going to be getting into the 2,326 range with SI at about 1,500. Then things get interesting. So I can see why they are doing some conserving of water. Especially with these cold conditions.

[boysy]

Well why should companies like MEL produce flat out and potentially drain their storage so the likes of the thermal generators can make a killing if it doesn't rain. MEL seems to be playing the hand they have been dealt, power demand seems to be rising lets hope it will spur on some additional capacity in the near term ...

[horus1]

I agree prices are heading up and with extra at Tiwai that will continue. That is why putting in 10Kw battery , 15 Kwh of solar in chch with 3 phase inverter . Certain it will pay for itself.

[fish]

I agree prices are heading up and with extra at Tiwai that will continue. That is why putting in 10Kw battery , 15 Kwh of solar in chch with 3 phase inverter . Certain it will pay for itself.

Has Tiwai started the extra pot?
I think I will have to follow-not sure about the battery but solar makes good sense to me-will be installed coastal Northland so lots of sun.
Just need the Jag i-pace to go with it and heated pool to use surplus power

[Jantar]

That is what is wrong with the market . It is a rort that diesel is running when there is plenty of water . Clearly the generators should be separated from Retail.Yes there is plenty of water, but it is being released at the maximum rate. Hawea was at its maximum permitted 200 cumecs until Friday, and is now getting close to minimum levels. Tekapo is well above average for this time of year, but is also discharging at its maximum rate. Pukaki is also releasing at close to its maximum rate, will a small amount left for spinning reserve. In the North Island Karapiro is generating 96 MW which means Taupo is also at maximum flow.

Despite having plenty of water in storage in Tekapo, unless you know of some way of moving that water to the Clutha and Manapouri catchments then it is as good as locked away.

[Bobdn]

Yes there is plenty of water, but it is being released at the maximum rate. Hawea was at its maximum permitted 200 cumecs until Friday, and is now getting close to minimum levels. Tekapo is well above average for this time of year, but is also discharging at its maximum rate. Pukaki is also releasing at close to its maximum rate, will a small amount left for spinning reserve. In the North Island Karapiro is generating 96 MW which means Taupo is also at maximum flow.

Despite having plenty of water in storage in Tekapo, unless you know of some way of moving that water to the Clutha and Manapouri catchments then it is as good as locked away.

Thanks for the explanation Jantar. Interesting stuff. So glad that Genesis fixed that turbine at Tekapo before winter hit - I see the Tekapo Power Scheme been producing something like 179 MW on average some days out of a possible 187 MW, incredible.

[boysy]

Good dollop of rain has fallen and is expected to continue to fall on the southern hydro catchments would imagine this bodes well for MEL FY2019.

http://www.metservice.com/maps-radar/local-observations/cumulative-rainfall-24-hours

[boysy]

Will be interesting too see the annual results due in 3 weeks from the June monthly update it’s clear MEL ran hard in the 2H2018. I suspect generation has got off to a good start with the hydro lakes remaining above average and with pot line 4 schueduled to be up and running later this year demand should grow throughout the year. Would be good to see another bump in divi also ....

[Beagle]

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/MEL/322523/284985.pdf

Looks pretty good. I hold a few for yield.

[blackcap]

What is it with this new reporting practice. I had to scroll down to page 63 before any meaningful information was presented to me.

This new way of doing things is utter CRAP. (applies not only to MEL but pretty much any company these days)

[percy]

I found it a hard to understand.
Powershop Australia's growth was disappointing.
Yes increasing [even if modest] huge dividends are the attraction.

[bull....]

excellent result , said way back on the thread this was the pick of the pack

[rmnz]

My first "real" investment, still a happy holder.

[sb9]

My first "real" investment, still a happy holder.

+1 for that, my first real investment too from IPO.

[boysy]

Good result in light of the poor 1H.

[mshierlaw]

Looks like this is just going to keep on giving.


Presentation Page 14



[*=1]Board will consider shareholder returns
[*=1]again under the existing programme in:
[*=1] February 2019
[*=1] August 2019
[*=1] February 2020


Presentation Page 15

New programme

[*=1]Expectation we would update the market on capital management during 2018
[*=1]Announcing a new two-year, $250M programme commencing in August 2020
[*=1]Signals the Board’s continued willingness to return capital where possible and give certainty in advance
[*=1]Allows the company to address investment opportunities in the medium term
[*=1]Manages credit metrics to a level reflective of Meridian’s hydrology risk
[*=1]Subject to the Board's regular review and consideration of structural industry risks
[*=1]No change to the existing ordinary dividend policy of 75%-90% payout of free cash flow



I'm still a happy holder.

[Tomtom]

Not Meridian specific but it'll be interesting to see if a period of sustained high petrol prices and new taxes being levied tempts people towards electric car or hybrid options.

[blackcap]

Not Meridian specific but it'll be interesting to see if a period of sustained high petrol prices and new taxes being levied tempts people towards electric car or hybrid options.

What about a period of sustained high electricity prices. See the wholesale price has been beweetn $150-$300 the last few days...https://www2.electricityinfo.co.nz/

[Bobdn]

Yes, hydro down and wind down so Huntly (and coal!) to the rescue, again. Thank God for Huntly's Rankine Units. Keeping the lights on time and time again. I assume Meridian has called in that swap thing they have with Genesis?

Unless you're a spot price customer (only a percent or two of the market) there's no need to worry about the Spot prices.

PS I just saw this on the Flick facebook page

"There’s also an outage at Pohokura (New Zealand’s largest gas field). This has an impact because gas fuels many of NZ’s thermal generating plants."

[boysy]

No mention in the monthly report of them looking to access swaption with genesis take this as a good sign. Looks like MEL are being a bit more cautious on the generation from than last year when hydro got very low. Let’s hope for a bit of rain in the southern hydro catchment in the next month or so ....

[sb9]

No mention in the monthly report of them looking to access swaption with genesis take this as a good sign. Looks like MEL are being a bit more cautious on the generation from than last year when hydro got very low. Let’s hope for a bit of rain in the southern hydro catchment in the next month or so ....

In the meantime, another nice divvy in bank a/c, thanks MEL

[RGR367]

In the meantime, another nice divvy in bank a/c, thanks MEL

It would have been a lot nicer had the total 11.38 cents/share had been all fully imputed. Not complaining, just wishing it continue just a little bit juicer. A truly bottom drawer earner.

[IAK]

In the meantime, another nice divvy in bank a/c, thanks MEL

Yep, thanks to John and Bill too.

[hogie]

I've actually almost made more from divvys on this stock than I originally paid for them! :D

[mshierlaw]

Just one more year of special divies, after that it's 80% of current (assuming no increase).

[Jonboyz]

AGM tomorrow. Is there a decent morning tea?

[GTM 3442]

Is anyone else thinking that Meridians Australian assets and development pipeline might be a (somewhat pallid) replacement for Tilt Renewables?

[boysy]

well plenty of rain falling in the right places for meridian - all lake levels up noting Pukaki is up the best part of 2.5m in the past 3 weeks. I expect the rain from the last few days will continue to spill into Pukaki the lake level should rise further from here ....

https://www.meridianenergy.co.nz/about-us/our-power-stations/lake-levels

[Tomtom]

There’s a lot of noise in the media about lake and coal levels needing to be kept up to avoid an absolute crunch next year (i.e. having to turn the lights off completely) but I’m not aware of what the underlying supply/demand situation actually is. The share price of generators has been holding up (which has not been true across defensive interestingly.)

Time to nip round out and buy a generator or just a quiet week for local news?

[horus1]

The situation is not just coal but gas as well. This is very bad management by the generators . There is a price review going on. The Govt must take some action in the finish.

[fish]

The situation is not just coal but gas as well. This is very bad management by the generators . There is a price review going on. The Govt must take some action in the finish.

I think its wrong to blame just the generators for current prices-there are many other factors involved and if you want to allocate blame to who "generated" this situation then blame all parties,God(the weather),the government,poor communication(?conspiracy in allowing extra potline-but I have no evidence to support this).

Yes Government could do a bit of pushing/encouragement eg to ensure offshore gas continues-or else generators will abandon the use of gas to cover droughts and periods of peak demand in winter. More regulation is likely to be wrong.Repeal of the future drill ban would be a start.

[horus1]

This is nothing to do with offshore gas. The last round of licenses did not generate many takers.This is profiteering by the generators as detailed in the AK uni study and the 2009 study. The generator retailers have to be separated as they should have been in the 1990's.

[Tomtom]

Typically capital seeks the highest returns possible. I'd suggest that if sausages where very profitable we'd see a rush to supply but, as it is no one is interested in making the sausage at current prices, it seems judicious that it is not. I doubt talk of regulating the price of sausage is helping the situation either.

[horus1]

Believe me there are many barriers to entry for big generation and the price of new plant is continually decreasing.

[boysy]

MEL seem to be generating flat out if the HVDC transfer is anything to go. Those paying spot wouldn’t be liking the $500/mwh at present

http://www.em6live.co.nz/PlanningRegion.aspx?planningregion=usi

Rain also looks to be continuing to fall in the right places. Lake Pukaki up close the 4m over the past month with plenty of rain continuing to fall in the southern hydro catchment areas at the moment.

[dreamcatcher]

MEL seem to be generating flat out if the HVDC transfer is anything to go. Those paying spot wouldn’t be liking the $500/mwh at present

Thanks for the update. Would take that Contact is also enjoying the same spot prices?

[Lawstudent05]

Hi All,
First time posting on this thread. Just a quick question I cant seem to find the answer to, does Meridian have a dividend reinvestment program?
Cheers

[IAK]

Hi All,
First time posting on this thread. Just a quick question I cant seem to find the answer to, does Meridian have a dividend reinvestment program?
Cheers

No they don't.

[Rabbi]

Cash cow half owned by the Govt. who have been consistently returning you 6% net of tax if you take the special dividend into account.
I look at it as an inflation adjusted exponential term deposit .
The risk of course is total economic collapse and the way Trump is going that's not a remote possibility.

[boysy]

HVDC cable maintenance until Tuesday seems to be having an effect on wholesale prices over $500/mwh throughout the NI currently

[fish]

HVDC cable maintenance until Tuesday seems to be having an effect on wholesale prices over $500/mwh throughout the NI currently

Remains the same with SI prices just cents/mwh.
Must be frustrating for SI generators who may be having constraits on profits.

One would think that mercury should be draining Taupo to meet demand and then reduce flow on Tuesday to replace mcy generation with cheap SI generation

[Lawstudent05]

Hi All,

Second time poster on this thread and a recent holder (very small parcel).

I bought right at the low of the week, keen for some thoughts from people who have followed the stock for a long time around the recent gains in the stock from $3.13 to 3.33? Is this due to recent downpour - thus able to generate more power?

Pretty green to this sector, I only bought due to basic macro fundamentals and the view of holding very long term with a strong dividend (and confirmed special div to 2021).

[mshierlaw]

Hi All,

(and confirmed special div to 2021).

I thought the specials were discretionary after 2019.

[boysy]

They did extend the special divi through to 2021 as per last annual report.

Rain has clearly fallen in the right places plus 4th potline at Tewai pt plus general increase in electricity demand. Looks as though limited additional supply is to come online in the short term so meridian low cost generation should continue to generate good income subject to rain and wind happening in the right places ...

[Joshuatree]

Hi Law , who knows why the s/p goes up and down ? Micro managing quickly gets boring and is a time waster unless you've trained yourself to be a worry wort and get off on it. It is a foundation sorta stock in ones portfolio imo as are some of the other genbit stocks and retirement prop stocks, here in NZ.


Lotsa great posts on share trader and Rabbi says it all pretty concisely i reckon. Jantar is the resident insider expert on power generation companies and we are lucky to have his philanthropic sharing.(where are you Jantar?) hope you are not pinned to the grate whilst raking flotsam off the in take:)

[Jantar]

....(where are you Jantar?) hope you are not pinned to the grate whilst raking flotsam off the in take:) Still here. But legally unable to make any comments on any company at present.

[Onion]

My Meridian shares are treating me well!

Biggest market capitalisation on the NZX (excluding the aussies). Share price at all time highs. 5%+ dividend yield. As a utility it should weather market turbulence better than most.

If you bought in the float then your money has probably tripled - a rough calculation tells me that dividends plus capital gain equals twice my initial investment.

[Joshuatree]

Yes my contrarian is suggesting taking the top off (at or near a top?)and selling 20% to add to the cash pile.
Consensus valn on 4traders is $3.11, 1 buy, 2 holds, 1 sell. PE est 2019 27.1

[limmy]

MEL is the best of the govt. energy floats. Anyone who bought would nearly have tripled their original investment, I agree. Not sure about being the biggest market capitalisation as there are many larger companies on the NZX.


My Meridian shares are treating me well!

Biggest market capitalisation on the NZX (excluding the aussies). Share price at all time highs. 5%+ dividend yield. As a utility it should weather market turbulence better than most.

If you bought in the float then your money has probably tripled - a rough calculation tells me that dividends plus capital gain equals twice my initial investment.

[boysy]

Look at the nzx10 constituents MEL MC 8.97b followed by ATM 7.9b SPK 7.62b FPH 7.57b CEN 4.21b FBU 4.16b .....

[limmy]

Thanks boysy for the figures. I learnt something new today, and I can see that MEL is a good long term hold.


Look at the nzx10 constituents MEL MC 8.97b followed by ATM 7.9b SPK 7.62b FPH 7.57b CEN 4.21b FBU 4.16b .....

[Onion]

Look at the nzx10 constituents MEL MC 8.97b followed by ATM 7.9b SPK 7.62b FPH 7.57b CEN 4.21b FBU 4.16b .....

I found a list of market capitalisation in the Share Screener on the Direct Broking site:

https://www.directbroking.co.nz/DirectTrade/dynamic/securityviews.aspx?e=NZSE

You can sort by various criteria including market capitalisation.

It lists the top as:



Company
Code
Mkt Cap


WESTPAC
WBC.NZ
92.4B


ANZBANKGRP
ANZ.NZ
75.11B


TELSTRA
TLS.NZ
36.75B


MERIDIAN
MEL.NZ
8.97B


AUCKAIR
AIA.NZ
8.79B


a2 Milk
ATM.NZ
8.13B


AMP
AMP.NZ
7.87B


FONTERRA
FCG.NZ
7.59B


Spark
SPK.NZ
7.58B


FISHERHEALTH
FPH.NZ
7.5B


RYMAN
RYM.NZ
5.45B


MERCURY
MCY.NZ
4.95B


CONTACT
CEN.NZ
4.3B


FLETBUILD
FBU.NZ
4.25B


AIRNZ
AIR.NZ
3.46B

[limmy]

Thanks for this Onion. This list isn't always easy to find, I googled for it without much luck yesterday. Good on Direct Broking for providing this info.
Cheers,
limmy

I found a list of market capitalisation in the Share Screener on the Direct Broking site:

https://www.directbroking.co.nz/DirectTrade/dynamic/securityviews.aspx?e=NZSE

You can sort by various criteria including market capitalisation.

It lists the top as:



Company

Code

Mkt Cap



WESTPAC

WBC.NZ

92.4B



ANZBANKGRP

ANZ.NZ

75.11B



TELSTRA

TLS.NZ

36.75B



MERIDIAN

MEL.NZ

8.97B



AUCKAIR

AIA.NZ

8.79B



a2 Milk

ATM.NZ

8.13B



AMP

AMP.NZ

7.87B



FONTERRA

FCG.NZ

7.59B



Spark

SPK.NZ

7.58B



FISHERHEALTH

FPH.NZ

7.5B



RYMAN

RYM.NZ

5.45B



MERCURY

MCY.NZ

4.95B



CONTACT

CEN.NZ

4.3B



FLETBUILD

FBU.NZ

4.25B



AIRNZ

AIR.NZ

3.46B

[macduffy]

I wonder how they arrive at M/Cap for the Aussie companies listed on the NZX? A snapshot based on domicile of holders, maybe?

[boysy]

That is the MC of westpac group or entire entiry listed on the asx one must remember ... MEL seems to be finding plenty of support at the present SP

[macduffy]

Thanks, both.

Yes, of course. Must remember to read more carefully in future! Those Aussie M/Caps are rather meaningless in the context of the NZX.

:blush:

Now back to Meridian. Holding since the IPO. A suitable investment in today's uncertain market.

[Beagle]

Thanks, both.

Yes, of course. Must remember to read more carefully in future! Those Aussie M/Caps are rather meaningless in the context of the NZX.

:blush:

Now back to Meridian. Holding since the IPO. A suitable investment in today's uncertain market.

Excellent defensive characteristics I couldn't agree more. I was late to the party in the late $2's but this has been a quiet achiever in my portfolio.
Topped up with a few more recently as even at $3.50 I calculate the gross yield at 6.8% inclusive of partial imputation credits. Safe and sustainable.

[boysy]

Gas halt likely to lift power prices

https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12190192

Another planned outage makes you wonder what will happen to those spot prices planned for 30 days in total with 12 days planned for Feb ..... wouldn’t want to be on flick when that occurs

[Joshuatree]

Snow levels very low too so high prices low volume.
See current snow storage (https://www.meridianenergy.co.nz/about-us/our-power-stations/snow-storage/)

[Hectorplains]

Blithly tucked away at the but end of the announcment - "Meridian’s retail sales volumes in December 2018 were 23.9% lower than December 2017" - and it's not commented on in the report at all. Are they losing "less valuable" (low volume) customers, so no cause for concern at the churn?

[boysy]

they do comment on page 5 noting that this is driven by far lower irrigation as a result of the very wet December in south island (aside from the hydro catchments). One wonders if the lower retail sales volume allows MEL to sell more generation into the wholesale market to get the benefit of spiking prices. As you mention are they replacing low income with spot volume (which i would imagine be far more profitable ?). While energy demand is fast in NZ for the year MEL generation still remains 10% up on last year ....

[Marilyn Munroe]

they do comment on page 5 noting that this is driven by far lower irrigation as a result of the very wet December in south island (aside from the hydro catchments). One wonders if the lower retail sales volume allows MEL to sell more generation into the wholesale market to get the benefit of spiking prices. As you mention are they replacing low income with spot volume (which i would imagine be far more profitable ?). While energy demand is fast in NZ for the year MEL generation still remains 10% up on last year ....

One trend in cockies irrigation practices is the piping of the water supply schemes and the drift to centre pivot irrigarors. The combination of low water pressure required by these irrigators and hydraulic head that becomes available from piped supply has massively reduced pumping requirements or in some cases eliminated them. Thus a reduced demand for electrons.

What influence has the starting of the fourth potline had on meridians supply-demand situation?

Boop boop de do
Marilyn

[bull....]

meridian actually gaining customers over the last 12mths compared to gne ,mcy,cen,trustpower who lost customers. the minnows like electric and vocus are sure eating away at the majors

[bull....]

tracking nicely last few mths cant complain

[boysy]

https://www.energylink.co.nz/sites/default/files/HydroWatchWeekly_20190131.pdf

interim results due in 3 weeks - seems to be plenty of people chasing the SP higher in the past few months.

[couta1]

I reckon some of these power companies are so overvalued right now it's almost laughable, I wouldn't go near any of them, a very high price to pay for an average yield IMO.

[bull....]

I reckon some of these power companies are so overvalued right now it's almost laughable, I wouldn't go near any of them, a very high price to pay for an average yield IMO.

cheap , 90% chance of a rate cut this yr according to the futures. the worlds gone dovish makes them even more valuable gne . mcy mel , tpw , ift , vct ,aia , zel all lovely oh forgot cnu probably some others too

[couta1]

cheap , 90% chance of a rate cut this yr according to the futures. the worlds gone dovish makes them even more valuable gne . mcy mel , tpw , ift , vct ,aia , zel all lovely Yeah right, HGH and TRA are cheap not these, ZEL okay, AIA no thanks, IFT not cheap either now. PS-Lets see what the market looks like come May.

[bull....]

Yeah right, HGH and TRA are cheap not these, ZEL okay, AIA no thanks, IFT not cheap either now. PS-Lets see what the market looks like come May.

hgh, tra lol both in downtrends all the others up trends stocks go up for a reason and down for a reason

[Beagle]

Wholesale bond rates have fallen and with the economy fairly weak speculation is on that the RBNZ is looking at an interest rate cut from the already very low level of 1.75%.
The power companies are doing well and Contact lifted its dividend policy yesterday from 80-90% of free cash flow, (mid point 85%) to 100% of FCF.
In a very uncertain world the stability, highly defensive properties and yield of the power companies looks like a safe harbour and with gross yields of up to 7.5% inclusive of partial imputation credits I think the rising share prices are a perfectly logical response to changing market and economic circumstances.

Disc: I have recently added to my investment in MEL and opened up a modest position in CEN yesterday. The gentailiers offer a relatively safe place to invest while still getting a good return. I find I don't worry about these companies at all, unlike some others.

[bull....]

Wholesale bond rates have fallen and with the economy fairly weak speculation is on that the RBNZ is looking at an interest rate cut from the already very low level of 1.75%.
The companies are doing well and Contact listed its dividend policy yesterday from 80-90% of free cash flow, (mid point 85%) to 100% of FCF.
In a very uncertain world the stability, highly defensive properties and yield of the power companies looks like a safe harbour and with gross yields of up to 7.5% inclusive of partial imputation credits I am sorry Couta1 but I think the rising share prices are a perfectly logical response to changing market and economic circumstances.

Disc: I have recently added to my investment in MEL and opened up a modest position in CEN yesterday. The gentailiers offer a safe harbour in a very uncertain world.

what about gne not own anymore? its paying the highest yield of all gentailers

[couta1]

hgh, tra lol both in downtrends all the others up trends stocks go up for a reason and down for a reason Each to their own, I buy all trends except stocks I consider are overvalued.

[Beagle]

what about gne not own anymore? its paying the highest yield of all gentailers

Yes I still have gne and am also looking for an opportunity to add more, (probably not today).

[percy]

Each to their own, I buy all trends except stocks I consider are overvalued.

Hard to disagree with you,however GNE,MEL and SPK have treated me very well .
Added to my HGH and TRA divies I am a happy chappie.
MEL are my power supplier,so it means I don't worry about the power we use.[not that we use much].

[bull....]

Hard to disagree with you,however GNE,MEL and SPK have treated me very well .
Added to my HGH and TRA divies I am a happy chappie.
MEL are my power supplier,so it means I don't worry about the power we use.[not that we use much].

mel standout performer up 17% + divs last 6mths im thinking the other gne , mcy need to play catchup as mel is really out performing

[boysy]

Spot prices been fairly solid today at over $300/Mwh since this morning wouldn’t want to be paying spot prices that’s for sure .... looking forward to a great 1H result wonder if they might up that interim divi more than mr market expects .....

[Beagle]

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/MEL/330526/294875.pdf Looks pretty good to me. Happy holder for yield.

[boysy]

Yes solid report generation and customer connections all up expect a good result next week

[bull....]

today is the day

[bull....]

excellent result , op cash flows awesome best ever i believe

[percy]

today is the day

And all is well.
In fact better than I expected.

[boysy]

Yes 1H incredibly positive plenty of cash being made for MEL being long in generation compared to Competitors. Assuming rain continues to fall in the right places 2H should be even better - noting further gas outages will keep spot prices elevated and MEL should be beneficiary of likely change to transpower pricing .....

[horus1]

The EPR report just damaged the result

[boysy]

Can you provide a Link ?

[Hectorplains]

The EPR report just damaged the result


How's that? Surely, there's not much in the second paper that'd spook the horses? Anyway, this is still at consultation phase. Submissions due by 22 March and even after that it's only to deliver 'recommendations.'

[Beagle]

Strong result as expected. Nice divvy lift, happy holder.

[Bobdn]

The EPR report just damaged the result

Is that wishful thinking? It really doesn't.

[Beagle]

http://www.sharechat.co.nz/article/015934a4/embargoed-power-panel-favours-scrapping-low-fixed-charges-prompt-payment-discounts.html?utm_medium=email&utm_campaign=EMBARGOED%20Power%20panel%20favours%2 0scrapping%20low-fixed%20charges%20prompt-payment%20discounts&utm_content=EMBARGOED%20Power%20panel%20favours%20 scrapping%20low-fixed%20charges%20prompt-payment%20discounts+CID_0f083ac674df0cfbcc075c55d3 2f86fc&utm_source=Email%20marketing%20software&utm_term=httpwwwsharechatconzarticle015934a4embarg oed-power-panel-favours-scrapping-low-fixed-charges-prompt-payment-discountshtml

I note MEL have already scrapped so called prompt payment discounts unlike some other companies.
I can't see any issues here for the other gentailiers either.

[hogie]

http://www.sharechat.co.nz/article/015934a4/embargoed-power-panel-favours-scrapping-low-fixed-charges-prompt-payment-discounts.html?utm_medium=email&utm_campaign=EMBARGOED%20Power%20panel%20favours%2 0scrapping%20low-fixed%20charges%20prompt-payment%20discounts&utm_content=EMBARGOED%20Power%20panel%20favours%20 scrapping%20low-fixed%20charges%20prompt-payment%20discounts+CID_0f083ac674df0cfbcc075c55d3 2f86fc&utm_source=Email%20marketing%20software&utm_term=httpwwwsharechatconzarticle015934a4embarg oed-power-panel-favours-scrapping-low-fixed-charges-prompt-payment-discountshtml

I note MEL have already scrapped so called prompt payment discounts unlike some other companies.
I can't see any issues here for the other gentailiers either.


I really disagree with the scrapping of prompt payment discounts ... I think it's a mistake ... but each to their own ...

[Beagle]

I really disagree with the scrapping of prompt payment discounts ... I think it's a mistake ... but each to their own ...


MEL's response (which I agree with) is to do away with the faux discount scheme. The concern of the review panel has been that the discounts are not genuine. For example if a company adds 25% to a $100 power bill to make it $125 (by virtue of higher unit or daily rates) and then offers a 20% discount for prompt payment to get back to $100, what remains for those that can't afford to pay the bill on time is a 25% penalty for late payment. From memory with the draft review there's about 11% of households, (which in itself is a very sad statistic) that don't pay the bill on time.

I just signed up with MEL for a 3 year fixed price deal on power supply to our home in Auckland on a 15.40 cents per unit plus daily rate. Most other power suppliers were north of 20 cents per unit but offer so called discounts for prompt payment which worked out considerably more expensive after the faux discount.
The fact that all my supply is from 100% environmentally renewable sources adds an extra bit of sweetness to this deal.

[dobby41]

For example if a company adds 25% to a $100 power bill to make it $125 (by virtue of higher unit or daily rates) and then offers a 20% discount for prompt payment to get back to $100, what remains for those that can't afford to pay the bill on time is a 25% penalty for late payment. From memory with the draft review there's about 11% of households, (which in itself is a very sad statistic) that don't pay the bill on time.
In reality isn't that what all 'prompt payment' discounts are - a penalty if you don't pay on time?
Companies like it because it sounds nicer than a 'penalty'.

[Beagle]

In reality isn't that what all 'prompt payment' discounts are - a penalty if you don't pay on time?
Companies like it because it sounds nicer than a 'penalty'.

Yes you could argue that. Lots more in here and I note scrapping the faux discount costs MEL $5m which I presume means per annum. https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12205460 I think the issue is that companies need to take a more compassionate approach to those that can't pay on time and not levy them with artificially high penalties, but perhaps they have to pay the real administrative costs of handling late payment matters or perhaps the companies themselves have to wear the additional administrative burden as part of their business model ?

[percy]

So those of us who pay ontime will pay more to cover those who don't pay on time.
The number of slow payers will increase because there is no prompt payment discount .

[Beagle]

So those of us who pay ontime will pay more to cover those who don't pay on time.
The number of slow payers will increase because there is no prompt payment discount .

Yes that would happen if other companies are not forced to abandon their disingenuous discount scheme's (scams ?) but they will be forced to do that by the Govt.
More on Meridian's result here. https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12205448
I am proud as a shareholder that MEL are the first to offer fair and transparent pricing and did this voluntarily and not through legislative compulsion.

[horus1]

Beagle , nobody gets energy any different from anyone else . It is 65 % non CO2 which is the important bit. Believe me the report is bad for the generators.

[dreamcatcher]

Not much of a discount if prompt payment bonus already added to bill ............ opted out of that scam last year with PULSE

[Beagle]

Beagle , nobody gets energy any different from anyone else . It is 65 % non CO2 which is the important bit. Believe me the report is bad for the generators.

I am all ears as to why you think that ? Go on, humour me with the aspects of the report that are concerning.

[kiwico]

The fact that all my supply is from 100% environmentally renewable sources adds an extra bit of sweetness to this deal.

Perhaps 100% but not 100% good on the environment as geothermal can put out as much CO2 as a gas-fired combined cycle plant (https://nzgeothermal.org.nz/geothermal-energy/emissions/).

"CO2 emissions for geothermal power plants are normally in the range of 10-400 g/kWh compared to 900-1000 g/kWh for oil and coal-fired plants or 400 g/kWh for gas-fired combined cycle plant. Atmospheric emissions from geothermal plants average only about 10% of the emissions from equivalent sized fossil fuel power plants."

[kiwico]

So those of us who pay on time will pay more to cover those who don't pay on time.
The number of slow payers will increase because there is no prompt payment discount .

As long there are some retailers that have prompt payment discount (for the reasons refereed to above) I can't see an issue with there being some that do. Wanting to ban all such discounts seems extremely draconian.

Although I would be happy if they rolled out such a ban out to local councils and their rates...

[Beagle]

http://www.sharechat.co.nz/article/3af5dcda/meridian-positions-for-next-generation-development.html?utm_medium=email&utm_campaign=Meridian%20positions%20for%20next%20g eneration%20development&utm_content=Meridian%20positions%20for%20next%20ge neration%20development+CID_23d76e4858019b227186e99 4be7d9548&utm_source=Email%20marketing%20software&utm_term=httpwwwsharechatconzarticle3af5dcdameridi an-positions-for-next-generation-developmenthtml

[horus1]

Good article but that includes 50 MW of base load at Tiwai at about 5.5C/Kwhr that all domestic customers in NZ are subsidising . Tiwai has not been in the national interest for a long time .

[bull....]

happy chappie i am brought more on the close yesterday , rediculous sell down on such good numbers

[percy]

happy chappie i am brought more on the close yesterday , rediculous sell down on such good numbers

Well done.
I could not understand the way the market reacted to the result.
I thought it was excellent.

[Beagle]

Must admit I was scratching my head at yesterday's SP reaction too.

[horus1]

The EPR was not very nice to the Grenerators

[Hectorplains]

The EPR was not very nice to the Grenerators

You've pedelled this line earlier without explanation. Care to elaborate where you see the proposals being, "not very nice" to gentailers? For mine there's sod all in the second report that's of any deep concern.

[horus1]

Have a look at the market sections,disclosure of generation and retail reporting etc.

[Hectorplains]

Have a look at the market sections,disclosure of generation and retail reporting etc.

Remember it's an "Options Paper" and these are preliminary views. The BIG win for Gentailers is that the panel does not recommend retail price caps or prohibiting vertically integrated companies. I don't know what you're reading in the disclosure and reporting that could be significant issues? The market thinks the same, nothing to see here ... Gentialer prices up post announcement.

[Jantar]

Remember it's an "Options Paper" and these are preliminary views. The BIG win for Gentailers is that the panel does not recommend retail price caps or prohibiting vertically integrated companies. I don't know what you're reading in the disclosure and reporting that could be significant issues? The market thinks the same, nothing to see here ... Gentialer prices up post announcement. The only part of the review that may have an affect on the wholesale market is the requirement for generators to be more proactive in notifying any outages. However most do this already via Transpower's POCP website.

[bull....]

looking very good for a shot at 4 im hoping

[Beagle]

The only part of the review that may have an affect on the wholesale market is the requirement for generators to be more proactive in notifying any outages. However most do this already via Transpower's POCP website.

Exactly. The facts are N.Z's retail electricity process are 20% below the OECD average and 40% below what Australians are paying. There is no basis whatsoever for some of the fearmongering that's been going on by some others and market is clearly completely unfazed by the report. Holding long term for very safe yield.

[dreamcatcher]

Avge analyst TP $3.30 underweight with 4sells 1uw 3hold

Sold half today but retained cen ...........

[couta1]

Avge analyst TP $3.30 underweight with 4sells 1uw 3hold

Sold half today but retained cen ........... My fair value is around $3.20-$3.30 so way overvalued IMO along with most of the other power companies hence wouldn't touch them atm just like SPK at $4.30ish.

[Beagle]

Power companies are trading on yield. Interest rates lower for longer = higher prices for power companies. Also longer term power futures have moved up materially in the last year and profits are also up. I would have said $3.30-$3.50 a year ago as the trading range but time has moved on, along with profits and long term power generation futures and with it the share price. Those wanting yesteryear prices probably won't be owning the gentailiers in the foreseeable future so will miss out on good reliable safe yield, its as simple as that. Nothing wrong whatsoever with the gross yields of MEL, GNE and CEN in my opinion even at the current share prices, happy holder of all 3.

[dreamcatcher]

Increased from $3.25 ..........new GS 12m Price Target $3.45 Neutral Rated

[bull....]

i agree with beagle valuations dont take into account the demand for income from people. with rates set to head lower in nz/aus gentailers offer a very attractive income compared to declining deposit rates

[Beagle]

Chris Lee reckons many people use the Gentailiers as a bond proxy what with bonds per se having such pathetic yields and demand for electricity almost entirely inelastic irrespective of price.

[percy]

Well I certainly do.

[bull....]

Chris Lee reckons many people use the Gentailiers as a bond proxy what with bonds per se having such pathetic yields and demand for electricity almost entirely inelastic irrespective of price.

bond proxy for sure and for that reason you should base your assumptions on the yield available.

i favour mel as best of the bunch , have all along but i view gne as the top trade based on yield

[percy]

To spread my "bond" risk I also brought GNE.
Both have well exceeded my expectations.

[dreamcatcher]

Agreed gentailers are a bond proxy with safe dividend yields. Own both MEL & CEN but been selling down MEL last couple of years as analysts valuations always been behind SP and current SP may create capital loss.

only my opinion

[bull....]

Agreed gentailers are a bond proxy with safe dividend yields. Own both MEL & CEN but been selling down MEL last couple of years as analysts valuations always been behind SP and current SP may create capital loss.

only my opinion

why ya selling? where are you going to get income when deposit rates are 1% maybe gne at 8.4% lol

[dreamcatcher]

why ya selling? where are you going to get income when deposit rates are 1% maybe gne at 8.4% lol

Only sold half but will buy again if SP comes back in line but have much larger holding in CEN.

Portfolio is well spread including aus for income.

[Jantar]

Interesting to note that at 08:30 this morning both Contact and Meridian announced a change in the head of HR. Tania Palmer is moving from Contact to Meridian after her 3 months notice (also know as gardening leave). Following this announcement, the share price of both companies increased.

[Joshuatree]

What can that mean Jantar? Is there any linkage to S/P rise or just a red herring?

[Jantar]

What can that mean Jantar? Is there any linkage to S/P rise or just a red herring? I will not answer your question directly. I will just say that at Contact she will be missed, and that Meridian have got a very capable person as a result.

[macduffy]

Interesting to note that at 08:30 this morning both Contact and Meridian announced a change in the head of HR. Tania Palmer is moving from Contact to Meridian after her 3 months notice (also know as gardening leave). Following this announcement, the share price of both companies increased.

I doubt that means anything. HR people will disagree probably but in my experience Heads of HR don't influence profitability,

[bull....]

breaking out to new highs , $4 must be on the cards soon?

[couta1]

breaking out to new highs , $4 must be on the cards soon? Nice ramping bull but at current prices your beloved SPK is better buying.

[bull....]

Nice ramping bull but at current prices your beloved SPK is better buying.

should i start ramping that again when its time?

[couta1]

should i start ramping that again when its time? Now would be good, we need the price at $3.80ish before it goes ex divvy if you could arrange that.

[bull....]

Now would be good, we need the price at $3.80ish before it goes ex divvy if you could arrange that.

gotta get over 3.75 nz first , thing this time mel will beat spk to $4 but then spk might go to $10 when skt goes bust and spk takes over all sport.

[bull....]

spk moving up , cool its working lol they must see the potential in sky going bust

[Beagle]

Share price at an all time record at $3.825. How's this for a 5 year chart, pretty encouraging TA ! 10373

I wish all my shares were as boring and quiet achievers as this one !

[Onion]

Share price at an all time record at $3.825. How's this for a 5 year chart, pretty encouraging TA ! 10373

I wish all my shares were as boring and quiet achievers as this one !

46% gain in the last year -- that is the kind of boring I can live with!

[oldtech]

Share price at an all time record at $3.825. How's this for a 5 year chart, pretty encouraging TA ! 10373

I wish all my shares were as boring and quiet achievers as this one !

Without wishing to jinx this, the 4 year chart for THL was looking like this early last year ... and we all know what happened then 10375

[Beagle]

Without wishing to jinx this, the 4 year chart for THL was looking like this early last year ... and we all know what happened then 10375

lol mate, I think we both know they might be "slightly" different industries :)
Fairly tight supply situation looking forward. http://www.sharechat.co.nz/article/629c228b/genesis-says-e3p-could-stop-year-round-generation-within-five-years.html?utm_medium=email&utm_campaign=Genesis%20says%20E3p%20could%20stop%2 0year-round%20generation%20within%20five%20years&utm_content=Genesis%20says%20E3p%20could%20stop%20 year-round%20generation%20within%20five%20years+CID_90b 06682d83b9b5d7b4d780d6210057f&utm_source=Email%20marketing%20software&utm_term=httpwwwsharechatconzarticle629c228bgenesi s-says-e3p-could-stop-year-round-generation-within-five-yearshtml

[oldtech]

lol mate, I think we both know they might be "slightly" different industries :)

Yup, agreed. Just making the point (not that I need to point it out to anyone here I'm sure) that the TA can be encouraging for many a year ... until the "bend in the trend at the end".

[sb9]

breaking out to new highs , $4 must be on the cards soon?

Will think seriously to take some profit if it hits the price target as it'll be good to lock in some gains since holding from IPO.

[bull....]

Will think seriously to take some profit if it hits the price target as it'll be good to lock in some gains since holding from IPO.

obviously you dont need income?

[Beagle]

Yup, agreed. Just making the point (not that I need to point it out to anyone here I'm sure) that the TA can be encouraging for many a year ... until the "bend in the trend at the end".

Absolutely mate, couldn't agree more. Simple TA, break down through 100 day MA, would have got people out of THL at ~ $6.20. Cool eh :)

[sb9]

obviously you dont need income?

Not really, prefer DRPs where available. In this case though, think it getting bit toppy, so good to lock in some real gains.

[bull....]

Not really, prefer DRPs where available. In this case though, think it getting bit toppy, so good to lock in some real gains.

switch to gne ? better yield and lagging mel performance

[sb9]

switch to gne ? better yield and lagging mel performance

Already have some on my radar which I'm looking for good entry point.

[Beagle]

From MCY thread end of February 2019


Beagle
I have crunched all the numbers on current share price and taking into account the degree of imputation credits below :- (this post to be continued)
MCY $3.60 Final divvy FY18 and Interim divvy FY19 total 15.3 cps 100% imputed = 21.25 cps gross = gross yield 5.9%
MEL $3.71 Final divvy FY18 incl special and Interim divvy FY19 incl special, ordinary divvies 86% imputed, special's not, gross divvy total 24.1 6 cps = gross yield 6.5%
GNE $ 2.79 Final divvy FY18 and interim divvy FY19 total 17.05 cps 80% imputed = gross 21.97 cps = gross yield of 7.9%

MEL divvy is supplemented with capital management program which is reviewed from time to time.
GNE earnings and their ability to pay these divvies is supplemented by Kupe and gas fields that from memory make up somewhere around one quarter of EBITDAF and are in very gradual decline
FWIW I hold GNE MEL and Contact.

Why are these companies going up in price ? 10 Year bank swap rate is now down to just 2.4%. Really safe yield.
Some people might sell MEL when it hits $4. I won't be one of them.

[bull....]

good mthly numbers , demand up again must be lots more aircons operating

[Beagle]

good mthly numbers , demand up again must be lots more aircons operating

Yes, February was VERY HOT ! National electricity demand up nearly 5% !

[bull....]

nearly back at all time highs

[bull....]

on fire new all time highs

[sb9]

nearly back at all time highs

Broke through $4 mark on open.

[IAK]

$4.09? Someone is keen on these today. Ex-dividend on 28 March.

Disc. Holding (biggest)

[bull....]

$4.09? Someone is keen on these today. Ex-dividend on 28 March.

Disc. Holding (biggest)

on fire , i had to drop a few for gne as i think its lagging the others so will play a big catchup soon

[BlackPeter]

While I sort of understand how Infrastructure shares (and particularly Gentailers) ended up where they currently are ... am I wondering how this is all going to end?

MEL sells currently for $4.08 per share and has a forward PE of 35 (backward 39). Not really one of these hyped up growth shares either with a revenue forward CAGR of 1.5. Hmm.

I guess I get that for Gentailers it is not the earnings, but the cashflow (and the divvie) which count, and sure - dividend return is still 4.8% (presumably imputed). Better than most bonds currently availalbe. But than, if we assume that what goes up must come down - people will need to accumulate their divvies for a long time before these will make good for the capital loss if the SP only drops down to the analyst consensus of $3.40.

What did I miss - why is it currently a good idea to buy MEL for $4.08? Or is this going to be the all time high?

[horus1]

And there has just been a price review of the Electricity Sector, which said nothing much is wrong. These shares are ripping off the domestic customers . It will end in a crash ,. The Govt is a conflicted party.

[boysy]

bond proxy as long term rates trend down this is seen as a safe haven. We are not in usual times one has to remember ....

[Beagle]

And there has just been a price review of the Electricity Sector, which said nothing much is wrong. These shares are ripping off the domestic customers . It will end in a crash ,. The Govt is a conflicted party.
Factually incorrect. The electricity sector review showed domestic customers power prices are 20% lower than the OECD average. Maybe you should do a market comparison and see if you can get a better deal if you are feeling aggrieved by your current electricity and plan ? Easy enough to do here https://www.whatsmynumber.org.nz/

Many people own these as a bond proxy and its all about super safe yield. We could be looking at another decade if not more of ultra low interest rates. Utilities rallied strong on Wall St on Friday. I expect the Gentailiers to continue their upward trajectory from here to even higher levels as people continue to invest for safe yield that's immune to any possible recession and / or claw-back under the Reserve Bank's open banking resolution.

[voltage]

I am looking to park some money and using the electricity sector as a bond proxy. Is meridian the best of the best in this sector?

[Beagle]

I am looking to park some money and using the electricity sector as a bond proxy. Is meridian the best of the best in this sector?

GNE has the highest yield by a comfortable margin. I bought more very recently so back my opinion up with action. I am looking for more on any possible slight dip as they still trade cum an 8.45 cps divvy, ex date 2 April to the best of my knowledge. I also like and hold MEL, CEN and a LOT of ARG as bond proxies.

[voltage]

Thanks Beagle. Craigs rate Meridian and Contact as their top stocks in this area. About GNE, would the price drop after 2 April since it has paid the divvy? As bond proxies would it be true to say that electricity stocks have more growth therefore a better buy than the property stocks?

[horus1]

Beagle.That is the sort of analysis used by the Industry and is misleading. If you compare those countries with a lot of Hydro the figures are nowhere as good. I am with Flick ,the best, and effectively buy some of my sons 15 KW of solar. Read Bertram's articles ,the Wolack and AK uni reports , to see the roarts going on. It will not last. The generator should be seperated from the retailers and be investigated by the Commerce Commission. The EPC was never going to do the correct things .

[Beagle]

Thanks Beagle. Craigs rate Meridian and Contact as their top stocks in this area. About GNE, would the price drop after 2 April since it has paid the divvy? As bond proxies would it be true to say that electricity stocks have more growth therefore a better buy than the property stocks?

Thanks for where Craigs see it, (2 out of 3 for me isn't bad). Yes price will probably drop by the dividend amount on the day it goes ex but in most cases the dividend paid is recovered fairly promptly in the share price after that, usually with a few weeks if not earlier. I have looked into this and believe if one is buying one is always best to buy cum dividend a few weeks before a stock goes ex divvy and if one is selling sell on an ex dividend basis a few weeks after a dividend, all other factors being equal. MEL and CEN had very strong runs these last few weeks. GNE, less so and could be due for some relative outperformance relative to its peers.

Property stocks v Gentailers as a bond proxy. I think the converse is probably true. If one normalises the unusual demand this summer caused by the prolonged dry hot spell, (extra demand by air conditioning systems and irrigations systems) national electricity demand is generally flat and only moving in line with population growth. On the other hand many of the leases that the property companies have, have annual or bi annual ratchet clauses such that rent goes up by x % per annum or the market rate, whichever is the greater. x is often 2-3% per annum compounding. ARG is PIE, (portfolio investment entity), net yield at $1.24 is just on 5%, (gross effective yield for those on a 33% tax rate) is 7.5% per annum. I bought some more ARG last Friday, nice safe boring dependable yield. Boring is good :)

[Snoopy]

I am looking to park some money and using the electricity sector as a bond proxy. Is meridian the best of the best in this sector?


A couple of important details are missing from your question voltage.

1/ How long are you looking to park your money for?
2/ If you are truly looking for a bond proxy, why are you looking at putting all your money just into one electricity sector company?

I am also using the electricity sector as a 'bond proxy'. But my own time frame is indefinite. By that, I mean there is no particular time frame in which I need the capital I have tied up in NZ Gentailers. I may adjust my holdings from time to time as part of a portfolio re-balancing exercise, But I don't expect to ever sell out completely, as long as I remain a power customer in NZ at least!

The purpose of having bonds in an investment portfolio IMO is to provide a predictable, and higher than cash rate, income stream with relative capital stability. If you are using Gentailers as a bond proxy I think you need more than one. That will reduce any one company specific issues causing a dent in your future income stream or capital. In my case I have chosen to invest in Mercury Energy and Contact Energy. I think they make a good pair, because Mercury tends to benefit from high rainfall in the North Island around Taupo, and the Wajkato River catchment. And Contact benefits from high snow melt in the Clutha River catchment in the lower South Island. Generally the peak river flows available in the Waikato and Clutha catchments do not co-incide. This means it is unlikely I will ever get an 'optimum return' from my 'Gentailer portfolio'. But it does mean I don't have to guess what the weather will be doing to optimize my return either. And generally I would not regard trying to forecast the weather to secure your investment returns as something you should try to do, if creating a bond substitute share portfolio is your purpose.

I see Contact and Mercury as a kind of 'hedge against each other'. I see holding both a good way to smooth my 'gentailer portfolio' returns. And as an electricity retail customer I see my electricity sector dividends as a way to hedge against my own power bills in the future. At the moment I am a Contact Energy retail customer, although I wouldn't necessarily look to be a shareholder in the company I buy electricity from. I would still see myself 'hedged' if I swapped over to Meridian for my power supply for example.

If you are looking to park your money for up to a couple of years, I would stick it in the bank, and stomach the lower interest returns. I think there is every chance that all Gentailers could fall significantly from current levels. If the Reserve Bank even looks like raising interest rates. It might take many years to get such capital lost back by accumulating dividends.

SNOOPY

[Beagle]

Good post and one could add GNE with its different generation profile for better diversification.
For my money I see ultra low interest rates prevailing for this year and most of the next decade if not all of it. I will also be holding indefinitely.

[bull....]

im holding gentailers too for income , agree low interest rates for yrs. gentailers pay good reliable income mel,cen,mcy and gne all good but think gne with its 8.4% yield as the standout

[Snoopy]

Good post and one could add GNE with its different generation profile for better diversification.
For my money I see ultra low interest rates prevailing for this year and most of the next decade if not all of it. I will also be holding indefinitely.


I did have a small holding in Genesis Energy that I had held since the partial float. I ended up selling out at $2.10 (at $2.95 today I have missed out on a +40% share price rise plus dividends since) two and a bit years ago. I reallocated much of that money into Contact Energy at $4.75 (At $6.60 today I am up +39% plus dividends since then). So far then, I may as well have not bothered switching over those shares. However Meridian , Mercury and Contact all have substantial renewable generation assets whereas Genesis only has a modest hydro generating capacity by comparison. Huntly, Genesis's biggest station is aging and the Rankine units have only 4-5 years of generating life left maximum without substantial capital expenditure and replacement. Renewable generation assets can be revalued as power prices rise. At that means new power stations can be built from borrowings without raising new capital from shareholders. I don't think Genesis will be able to 'build a new Huntley' by just revaluing their existing renewable generation assets. If Huntly is not rebuilt, then Genesis could end up being a much smaller industry player than it is now. For this reason I favour the other big three gentailers: Meridian, Contact and Mercury. IMO, there is good reason for Genesis to trade on a higher yield than the other three.

SNOOPY

[Beagle]

Fair enough Snoopy. I would like to think there's a reason GNE have committed to no more coal by 2030 and they will find a way to squeeze many more years of life out of those aging Rankine units but this may simply be wishful thinking.

[Snoopy]

Fair enough Snoopy. I would like to think there's a reason GNE have committed to no more coal by 2030 and they will find a way to squeeze many more years of life out of those aging Rankine units but this may simply be wishful thinking.


Jantar has told us that the Huntly boilers that fuel the Rankine units are aging, and that they are built into the structure of the buildings that encase them. Major capex would be required to re-mediate the situation for operation beyond another 4-5 years.

SNOOPY

[Beagle]

Thank you, yes I read his post. I take everything I read on here with a grain of salt and please, this post is not intended to offend anyone.
If anyone has a link to information supportive of that view as presented by the company itself I am all ears. In the meantime this doesn't look too shabby to me
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/GNE/326408/290004.pdf
GNE current trading and bid at an all time high of $2.97...can't be too shabby eh Snoops ?

[bull....]

mercury has its issues too , just in the maoris are taking over mercury power stations lol

South Waikato iwi advances treaty claim on sites of Mercury dam, power stations
https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12215979


so mel is my top pick and gne for top yield and gne is got a wind farm with tlt coming on line so they are building up generation. both dont have too woory about maori claims either

[macduffy]

I already held CEN when the great gentailer privatisation started in eanest and bought each of the others as they listed. So I'm covering the field - except for Trustpower - but adding a few GNE from time to time. Plus further exposure to TLT via IFT!

[Joshuatree]

Electric cars sparking in NZ Meridian Energy's shift to electric vehicles will be showcased at a global EV summit. (https://www.nzherald.co.nz/sponsored-stories/news/article.cfm?c_id=1503708&objectid=12212592) A free green pass for the more material and ignorant among us.

[Marilyn Munroe]

Electric cars sparking in NZ Meridian Energy's shift to electric vehicles will be showcased at a global EV summit. (https://www.nzherald.co.nz/sponsored-stories/news/article.cfm?c_id=1503708&objectid=12212592) A free green pass for the more material and ignorant among us.

On a dark and stormy winter night with a foot of snow on the ground and the electrical fitter at Benmore is called out to push a reset button on some equipment at Ohau C does he hop into his EV ute or does he ask the rabbiter next door who is a practical person if he can borrow his diesel ute?

Boop boop de do
Marilyn

[Joshuatree]

Borrows his shotgun and gets a feed,

[kiwico]

Electric cars sparking in NZ Meridian Energy's shift to electric vehicles will be showcased at a global EV summit. (https://www.nzherald.co.nz/sponsored-stories/news/article.cfm?c_id=1503708&objectid=12212592) A free green pass for the more material and ignorant among us.

I bet he won't be going electric when he goes on his round-the-world trip to promote EVs!

"Robilliard is soon to attend the global EV summit in Norway, where he'll join an international panel to discuss the motivators of, and barriers to, large organisation fleet electrification."

[Joshuatree]

Flying for sure, would you insist on paddling and cycling , funny man lol

[boysy]

well the rain of the last week fell in MEL's southern hydro catchment over the last week

https://www.energylink.co.nz/sites/default/files/HydroWatchWeekly_20190328.pdf

page 4 shows you all you need to know - Pukaki now 94% full - inflows of 290 GWH (+150% on the previous week).

http://www.em6live.co.nz/PlanningRegion.aspx?planningregion=lni

Looks like NI hydro is really struggling looks to be around the 5%ile at present with generation well down (around 500 MW being generated from NI hydro compared to 2,500 MW SI Hydro) - should be a good month for generation for MEL they should be able to sell excess into the wholesale market with prices > $200 MW.

[Beagle]

well the rain of the last week fell in MEL's southern hydro catchment over the last week

https://www.energylink.co.nz/sites/default/files/HydroWatchWeekly_20190328.pdf

page 4 shows you all you need to know - Pukaki now 94% full - inflows of 290 GWH (+150% on the previous week).

http://www.em6live.co.nz/PlanningRegion.aspx?planningregion=lni

Looks like NI hydro is really struggling looks to be around the 5%ile at present with generation well down (around 500 MW being generated from NI hydro compared to 2,500 MW SI Hydro) - should be a good month for generation for MEL they should be able to sell excess into the wholesale market with prices > $200 MW.

Great for MEL (due for another run) and not so good for MCY, (don't hold the latter).

[bull....]

hitting new highs

[couta1]

hitting new highs Dividend yield almost half of HLG at current price, what a joke.Lol

[bull....]

Dividend yield almost half of HLG at current price, what a joke.Lol

haha its sustainable dividend that counts , are you confident hlg div will be sustainable thru most economic conditions?

there is a reason hlg div yield is so high its called risk

dont forget only today and tomorrow to hoover up the gne div