Charismatic

Let's not get too bogged down in ethics here (the government certainly haven't), is there going to be money to be made from buying into this heap? Who's in, who's out, who thinks they have the inside line on making a penny flogging our childrens futures?

I'll start: I know nothing about windmills but apparently having electricity in your house is the done thing now. If I buy in it'll be for a good time and not for a long time, I don't like SOEs and most utilities are basket cases really in terms of growth.

chocolate cake

I'm out for sure, don't agree with the asset sales, and it's no surprise to see the next one's being rushed through now there's a referendum on the issue to be arranged.

At least the last one's trading in middling ground, and raced ahead which would be a sure fire indication it was sold cheaply. Still loads of money wasted advertising the sales, and then the $30m bribe to Rio Tinto to keep the southern aluminium works open for another 3 years.

Charismatic

Middle ground? Last time I looked it had taken a hammering despite above guidance profits.

Robbie2010

I wont be investing! Not sure how many "mum's & dad's will either after the big drop in the Mighty River price.

I wonder what Genesis will do?

Charismatic

Which is why it might be priced competitively.

Charismatic

I've not yet got out my calculator but...it actually looks pretty attractive on the surface.

Charismatic

I'm in and in deep as well. Won't hold.

chocolate cake

A typo on my post I'd disagree re the fact they have taken a hammering, Mighty River Shares have hardly tanked since launch, they're down 8% and that's not including a 7c dividend, it's to be expected that shares have up and downs.

If someone wants a guaranteed return then shares aren't the place to gambling your savings. That's not to say shares are a bad investment, because over time the return from them is usually much more the bank interest which barely beats inflation.

If the MRP shares were up say 20% since float, then quite rightly we'd be complaining they'd been under sold at launch.

That said as mentioned earlier, I'm against the sales on principle. All the utilities were sold in the UK, and the vast majority of them are now in foreign hands. So we have Cos earning regular returns and practically no risk, with the profits going overseas.

Re: Meridian shares being sold as great investments for the so called 'mum and dad investors', it's garbage must M&Ds are struggling to pay mortgages and ain't got the free money to buying back a share of the assets the govt is giving away. For M&Ds paying off debt will offer a much safer return than borrowing to buy back the family silver.

I can't see Meridian being competitively priced, instead it be going cheap so that there is a better immediate return than MRP.

Anyway at least we now have a date for the referendum. Sure there's a cost to that, but a pittance compared to that wasted on both floats.

Charismatic

Look we know it's mostly selling our childrens futures to assist the rich people in getting wealthier, that's not being debated. Setting aside ethics the question is how we can make money out of this omnishambles?

lapsed kiwi

I'll buy some, my feeling is that these will be good value partly due to the dubious performance of MRP.
I agree with the principle of the sales, and am partly buying just because I detest Russell Norman and his pack of communist buddies, so it's sticking a finger up at them.

MrsFychan

does anyone know if they would be a problem selling these in the future if you are no longer resident in NZ??

Clappy

I can't see why there would.

In the offer there were guarantees given to NZ residents, which is why they asked for residence information at that point. Those won't apply when you sell.

You will need a broker to sell the shares on your behalf and if you don't have one already then Anti Money Laundering rules will mean they ask you for proof of identity before they will let you have any money from the sale. That last part could add a delay that you were otherwise not expecting.

Charismatic

Your bank can AML verify you now so when you flog the shares the money can be credited straight back. As mentioned you'll probably be buying at 180 rather than 160 if you sell before 2015 or don't reside here at that point which may make it slightly less attractive.

To be honest though I have no intention of sitting on them for the extra 20c/share until 2015 if things go the way I anticipate.

Charismatic

Going well so far, using the standard BE wealth measure I made a few bottles of whisky today.

Now lets discuss exit strategies. When are we planning, what would make you consider an out?