Yes a nice oversold bounce. Have been slowly scaling out day by day (due to low liquidity).
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Maybe traders smarter than me have worked out that buying Mercury instead of Trustpower is the way to go. I mean, it is most likely imo that Trustpower will be swallowed by Mercury anyway...only a matter of time
https://www.stuff.co.nz/business/126...iness-for-441m
Be interested in the opinion of others.
Do you think TECT dividends to only Mercury/Trust Power customers will be a deal breaker?
It does sound like an unusual arrangement. A quick perusal of that article would suggest that the former Trustpower retail customers would have to be ringfenced as the sole future beneficiaries of the TECT (Tauranga Energy Consumer Trust) payouts. In the past, this arrangement has meant consumers were paying higher than average power rates to qualify for receiving a TECT dividend at the end of the year. I guess Mercury could offer such consumers a special rate (read higher rate) if they want this arrangement to continue into the future. But if Mercury does offer the same power unit rate to everyone, then the former Trustpower customers would be in the box seat regarding their power bills. Since TECT is completely independent of Mercury and all the other NZ power retail companies, I am not sure if the commerce commission can have any say in what TECT do with their income?
SNOOPY
discl: MCY shareholder
TECT has stunk from its creation and always been a tool of Trustpower. In practice only ever existed to subsidise shareholders. A situation which Infratil took full advantage of and continues too by trying to include it as part of the sale.
TECT dividends should go to all power users in Tauranga regardless of supplier to ensure the region has real competition. Of course that would devalue the sale price but is in Tauranga's long term interest.
Strong Half year results released this morning, but no strong buying support to emerge yet...
https://www.youtube.com/watch?v=BQ3Q9SJDgsE
Brilliant Advertisement, maybe too brilliant, made me want to go and adopt a three legged dog rather than join Trust power.
Thought I would drag TPW out and give it a good dusting over. Not much talk on here about the special div to be paid out in the near future plus the normal div. that is 35c + about 17c = to about 52c div. Please correct me if I am wrong. I hope I am not wrong:)
Correct, but remember the special dividend is taxed at 33%
Here’s their new website: https://www.manawaenergy.co.nz/