Yeah thanks and good post Snoopy. Have been thinking along similar lines also buying in a bit over 30 parcels of SPKs in last couple months. A bit scary breaking all investment rules lol.
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Yeah thanks and good post Snoopy. Have been thinking along similar lines also buying in a bit over 30 parcels of SPKs in last couple months. A bit scary breaking all investment rules lol.
Great post Snoopy. Meridian and Spark have both had this trick of building up valuable, saleable assets that boost the companies and share prices outside of their day to day operations. Speaks well to their capital investment decisions and perhaps the latent value inherent in well run utility companies.
My bet is the data centre division is spun out next. Lots of hype and froth in the data centre market both in NZ and internationally.
Snoopy. I have followed your suggestion and picked up 5,000 shares at $4.03 this afternoon. I will see how it goes but I have loads of patience and can hold shares for the rest of my lifetime. I often notice shares hover around round dollar amounts and dont like to break through it for long. So I am hoping $4 flat is a support level.
You could be right Jaa. I don't see Spark getting out of the data centre market. But as with the cell towers, Spark only need to own the operating electronics. Not the civil structures built to house them.
The interesting thing is that the 'differentiating' factor that Spark have to offer in data centres is the 'hybrid cloud' or 'private cloud'. The 'hybrid cloud' allows customers to install their own electronic memory devices on the Spark data racks, while similarly retaining access to the public racks owned by Spark for storing less sensitive data. Then we have the full private cloud, which allows customers to put all of their 'cloud; storage on their own in house company owned hard drives etc. So you have the potential for all sorts of third party people/technicians tramping through the Spark data centre.
The nearest analogous thing I can think of is a family owning their own flat, but then selling it to a third party landlord and leasing it back. The family know exactly who they are OK with crossing the threshold. But they now have to tell the new landlord that yes Aunty Flo comes in on Tuesday and Thursday to mind the baby. But what the landlord doesn't know is that sometimes Flo brings along her 'professional Crocodile Wrestling' boyfriend Matterhorn, complete with his croc. Then the croc slinks off and lays some eggs in older daughter Jen's bed. A month later Jen wakes up screaming as baby crocs just hatched start nibbling at her toes. Jen's father blames the landlord for letting Matterhorn and his croc companion in. But the landlord was only told that Aunty Flo should have full discretion to visit. And full discretion means bringing in any 'handyman/tech person' she sees fit. So who is to blame for this mess? It puts the third party landlord in a tricky position.
Now let's look at an alternative scenario where 'the family' are actually crims serving a year of home detention. In this case no person is allowed in or out. So all our 'landlord' has to do is put a sentry on the front door with authority such that if anyone 'crosses that front door threshold', be they be going in or out, there is one simple instruction: "Shoot to kill." This way, everyone knows exactly where they stand and there is no possibility of third parties coming in and putting animal matter (or data devices) in other people's bedrooms. The "shoot to kill" operation is the much easier scenario to manage, and is the kind of 'tenancy' that the likes of AWS and Microsoft Azure might offer to their 'public' data customers, or the style of tenancy that a third party landlord might find easy to manage for that matter.
The point I am making here is that while 'public' databases centres might be straightforward to sell, perhaps 'private' and 'hybrid' database centres, which Spark see as their competitive point of difference, may be less easy to offload.
SNOOPY
I suspect you will not 'get rick quick' kiwikeith. But nevertheless in the medium term, I expect you will do very well.
Part of the problem I have with my own portfolio is that those shares I hold in the NZX20, I tend to have 'underweight' positions in. Why? Because I like to buy my shares at some sort of discount. And when you have a share that is as well researched and has its esearch shared as an NZX20 share does, that 'discount to fair value' just doesn't happen very often. So when the opportunity arises, I feel the need act. I know some people like to optimise their entry points using charting techniques. Of course, this always involves 'missing the bottom' because an uptrend will never be confirmed until 'the bottom' is history. But:
1/ If you are buying for 'historical yield', which at today's closing price of 402.5 means a gross yield of: 37.5/402.5= 9.32%
OR 2/ You are looking for that 'short dip' below the $4 threshold to 392.5 (a gross yield of 37.5/392.5= 9.43%)'
OR 3/ You buy when the train is on the way up by 10c (a gross yield of 37.5c/412.5= 9.09%)
,,,,does it really matter, which option you choose?. All purchases are a great yields. Why worry about fractional perturbations in returns, when, looking at the bigger picture, all of those returns are a cut above anything you can get from a blue chip utility anywhere else? My mentality with Spark now is that 'Missing Out' on these prices is actually your biggest investment risk.
I know that interest rates will reduce at some point. I know that Spark is an interest rate driven share. I know the Spark share price will very likely jump when that happens. But I don't know when interest rates will move. And I am not prepared to sit over a computer screen 24/7 to 'push the buy button' on the moment. So best to be in! And if I have to wait six months. I will be paid a handsome dividend yield for my waiting time!
SNOOPY
This is called colocation and has been common in data centes for decades.
Most shared data centres do indeed have all sorts of third party people walking through them, especially after any kind of power failure as random switches, servers and routers fail on restart. Not unusual for companies with colocated whole racks to cover or obscure them so their competitors can't see what hardware they are using. The really high end ones provide escorts so technicians don't get "lost".
SPK now under $4.
I can't help but smile. Even though am down thousands. This reminds me of the Macpac add on tv. We are now teetering on the $4 cliff....... " Have you still got your Land line...no....well this is a bit precarious quite precarious in fact....if this was a film shareholders would start to worry at this point.....yeah but this is a Sparkpac.... ahhh Sparkpac that is incredible, what do they have a bungee cord for soft landing. Shhh someone is coming:D
spark increasing broadband pricing has not helped the stock price :scared: new low today in current down trend
What you haven't realised is that it is likely Chorus increasing broadband pricing, with Spark merely passing the price rise on. All other retail players in the broadband market will be facing the same broadband cost pressures. So I don't think this is a competitive mis-step by Spark.
SNOOPY