I think the insto's will be pretty keen to ensure a smooth transition during the installment receipt payment window.
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much as I love MEL, it looks very overdone to me. Mkt cap is effectively $6.8 billion. This is priced for perfection. I.e Tiwai stays open, no droughts ever, a good price received for the 150mw odd liberated from Tiwai shortly, favourable Tpm outcome, favourable RET outcome, NZ demand growth resumption etc.
Disc do not hold
Yep, as much as I hate to say it, MELCA is heading into the sell zone. But where to put the cash? Ugh, I won't be popular for this, but I enjoyed the GFC period a lot more than today, in terms of finding attractively priced investments.
Tread carefully; I sold out at $2 a couple of days ago in ill-considered anticipation of a downwards rebound. Broke all my rules about selling only after detailed analysis and having a cooling-off period. Been kicking myself ever since. Either way, its been quite a ride.
Interesting article on SOE sales:
Almost a year after the last (official) state asset sale, David Hargreaves has a look at how the investors - and the taxpayers - have fared
http://www.interest.co.nz/opinion/74...ok-how-investo
Int thanks IAK. $3 billion in gains and divs the taxpayers aren't going to benefit from.And a $4.7 billion return mmmh
"Collectively, therefore, the shareholdings sold are now worth about $2.5 billion more than the New Zealand taxpayer, courtesy of the crown, received for them. Add in the $580 million worth of dividends and that is north of $3 billion of value that the taxpayers are not seeing thanks to the asset sale
Actually - it was not really courtesy to the crown that the new shareholders benefitted that much. The crown would have received a much better price for the shares they sold if Green / Labour wouldn't have run their irresponsible scare mongering campaign against the electricity generators. While (as one of the people purchasing the shares) I am thankful that the Left made this venture so profitable - as a tax payer I am annoyed that they decided to waste billions of our money for cheap political gain.
If the govt has a $1 asset and sells 1/2 of it for $0.5 (bank that), and the remaining half doubles back to $1, plus dividends (bank that too). Seems like a good deal for the govt.