oh i was meaning if ya pay 1.60 an instos pay 1.8 then potentially if the shares trade at 1.8 you have made 20c + divs hope i got it right this time haha long week
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oh i was meaning if ya pay 1.60 an instos pay 1.8 then potentially if the shares trade at 1.8 you have made 20c + divs hope i got it right this time haha long week
My understanding is price cap $1.6 only for retail investors who participting in the IPO which hold the stock up to 18 months, if you buy shares on the market then you have to pay second installment same as institutions.
Our friend Chris Lee reckons the govt has been screwed good and proper by the greedy money men with these IPOs
Firstly they ensured the MRP one was not very successful ... made a small loss on that .... but ensured the bigger prize in Meridan is even cheaper now.
Good point ....Meridan gone from what most said was a $6 bill co to something like $4 bill ...... at a time that the NZX is up zonks. He said he going to buy just to some overseas insto getting their mits on the hige discount
You need to go and find his article if interested .... he doesn't like this sort of stuff being quoted or linked
"This emailed client newsletter is confidential and is sent only to those clients who have requested it."
not really when it's easily found with Google. Hardly confidential!
I guess the main attraction for me is the high dividend yield (artificially elevated due to partly paid nature) in the first 18 months - otherwise it is a dull utility just like many listed peers and PE multiples are similar too(high). So I am going to invest purely for income and I don't expect it to be a multi-bagger! I will be applying for my wife as well even though she does not want it!
I am sure there are far better long term buys in the NZX or ASX than these Govt controlled Utilites
Meridian forecasts a net profit of 187.9 m [7.3 cents/share] to June 2014 & will distribute 144% of these profits. A gross yield of 13.4% [page 9 of the prospectus] assuming full imputation credits---contradicting a note on page 9 saying future divs will be only partially imputed.
For the year to June 2015 an annual div of 9.5% is planned [plus some imp credits]--a distribution of 140% of profits.
How sustainable is all this?
How will the company grow with outgoings like this?
And there is the strong possibility of a Labour/ Greens Govt dictating in the future
Not a great picture for a healthy investment which shows share growth & a sustainable return