Contact Energy - CEN Chart

[kiwikeith]

Was that announcement bad news innspitebofbheading

CEN share price down 4% at the moment

Disc. …don’t really understand power companies

It puts the dividend up to an annual 39c. Divide that by the $8.75 share price and you have a 4.5% dividend yield (probably fully imputed so an after tax return). It seems a solid investment rather than a game changing investment.

[malreid]

Possibly some reaction to unstated/unknown costs relating to the Tauhara modifications mentioned, not entirely unexpected in a new plant but nonetheless an indication of detailed design in some areas being not quiet there and is there anything more to be discovered as the plant beds in.

Also the cost of acquired generation needed to cover the statutory Te Mihi shutdown which will coincide with the new customer supply contracts. Although factored into projections there will be some level of uncertainty in there.

[Snoopy]

It puts the dividend up to an annual 39c. Divide that by the $8.75 share price and you have a 4.5% dividend yield (probably fully imputed so an after tax return). It seems a solid investment rather than a game changing investment.

Dividend at 39cps restores the divie back to what it was in FY2020 - exciting! Closing share price on 30th September 2020 was $6.65 (not so exciting?)

SNOOPY

[Aaron]

Was that announcement bad news in spite of the heading

CEN share price down 4% at the moment

Disc. …don’t really understand power companies

Front page of the herald yesterday was about disconnection and reconnection fees and how much money the power companies are making. All power companies down yesterday I think.

Maybe there is high frequency trading that runs off headlines?

I cannot understand, whenever I buy shares there are a number of tiny amounts sold, I would have thought that with fees you would want to buy at least $10,000 at a time but in saying that I have just gone to check at ASB Securities and maybe that is no longer true. But not sure of the trades for one or two shares that pop up now whenever I buy (which is not often). Who would be doing that?

[mfd]

Some of the new trading platforms like sharesies charge a percentage, or you can pay a subscription for x dollars of free trading per month. Much easier and cheaper for the small time investor these days - everybody starts somewhere.

[kiwikeith]

Front page of the herald yesterday was about disconnection and reconnection fees and how much money the power companies are making. All power companies down yesterday I think.

Maybe there is high frequency trading that runs off headlines?

I cannot understand, whenever I buy shares there are a number of tiny amounts sold, I would have thought that with fees you would want to buy at least $10,000 at a time but in saying that I have just gone to check at ASB Securities and maybe that is no longer true. But not sure of the trades for one or two shares that pop up now whenever I buy (which is not often). Who would be doing that?

I hope someone who knows answers that. I have often wondered the same thing.

[Toddy]

General question. Reading some of the quarterly data from the generators, the reports are starting to show some concerning lake levels and sky high spot prices.

Should we be concerned?
And is this an opportunity to invest in the generators and which ones would benefit the most from a big dry.

Im not that well read on the electricity sector, but a potential big dry has got me interested.

[Valuegrowth]

Demand for power won't disappear even during period of weak macro economy. Currently, sector is overvalued. I may add to my portfolio when they become attractive.