This looks quite positive to me. Gas netback up ~50% and fuel costs down. Surely if this trend continues they will have to increase guidance? Really tempted to get into this one again but interest rates are on my mind.
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This looks quite positive to me. Gas netback up ~50% and fuel costs down. Surely if this trend continues they will have to increase guidance? Really tempted to get into this one again but interest rates are on my mind.
8.1% gross yield inclusive of imputation credits is about 4.5% above the 10 year Govt stock rate. I think that's a very attractive premium for a very safe utility company. 10 year Govt bonds have risen a long way in the last year...maybe not much further to rise ? Maybe 4% and that's about it ?
I wish I knew! I’ve got my fingers and toes crossed the inflation numbers surprise all and come in at a number starting with a 6 and not a 7. Would love to see gov yields arrested in the 3’s.
But I’m also hoping my wife’s lotto ticket is the lucky winner tonight too.
Interesting times
Could this have something to do with the central banks asset purchases? https://tradingeconomics.com/new-zea...-balance-sheet suggests the balance sheet of the central bank has increased significantly since pre covid. Is the yield difference decrease potentially a side effect of this?
Bases forming can be a bit tricky. Yes this base can signify the bottom, but when you zoom out to a monthly chart you can see this could well and truly be a bearflag forming (bearish continuation). Always good to consider the bear case too, as the most likely scenario is that the trend continues.
In scenarios like this I would only be purchasing right at the lows with a stop just below. Maximise risk/reward.