Originally Posted by
Beagle
I think many people, myself included forgot about the risk of the gentailiers with Rio's right at any time to pull the plug with 12 months notice.
What I also didn't realise because I got so lazy with the predictable steady rise of these shares was that since a year ago when for example MEL was $3.10, was that at the peak of $5.54 in early September the shares were up a whopping 79% plus dividends for a total shareholder return of approx. 85% in just the last year, on top of good gains in previous years.
I think people, (myself included) have really flocked to the gentailiers as a haven of safety in such uncertain times. Some REIT's like GMT for example are also trading at extraordinary premiums of circa 30% to their NTA based on a what is probably a perception of real safety.
Food for thought...What happens to REIT and Utility prices if there's no recession and China and the USA reach a trade deal and growth and risk are on again and interest rates rise... What happens if Rio really does pull the plug this time ?