So who is going to buy some shares in Mighty River Power?

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Forums › Finance and wealth management › So who is going to buy some shares in Mighty River Power?

jonherries

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#114849 5-Mar-2013 09:52

This topic is not about whether this is the right thing to do. I understand people don't want assets sold and I agree with this sentiment, but if they are going to be sold without our consent, will you buy them?

It is an interesting conundrum. I don't want to support the assets sales, but think that if I don't buy some then they are more likely to go to overseas buyers.

On the other hand, no NZers buying them sends a pretty good signal that this is a farce.

In addition from a purely economic/profit perspective, do you think the sale price will be under or over a fair valuation (ie. will the share price go up or down on listing day).

Jon

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#774827 5-Mar-2013 09:58

I'm not a New Zealander. (Not a NZ citizen). So does that mean I can't buy?

jonherries

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#774832 5-Mar-2013 10:02

Klipspringer: I'm not a New Zealander. (Not a NZ citizen). So does that mean I can't buy?

Not sure what the details are around this (Ie. the NZer preferential offer), hadn't even thought. Maybe an IRD number would be required? What other validation would they want? Maybe a NZ Bank account or CC?

Apparently it will be generally listed so anyone can buy via e-trade, broker and I heard it might be listed in Aus as well. As a NZer you will get some sort of bonus apparently, or some sort of preference to purchase.

Jon

BlueShift

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#774837 5-Mar-2013 10:05

Given how well other energy companies - Solid Energy - have been doing, I'd be reluctant to bet the farm on Mighty River shares.
Not that I have any money to spend on shares anyhow, I'm a kiwi dad, how many of them have cash for a share portfolio? Real kiwi mums & dads invest in property!

D1023319

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#774842 5-Mar-2013 10:11

BlueShift:
Not that I have any money to spend on shares anyhow, I'm a kiwi dad, how many of them have cash for a share portfolio? Real kiwi mums & dads invest in property!

networkn

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#774843 5-Mar-2013 10:12

I might buy some.

jonherries

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#774854 5-Mar-2013 10:22

I am worried about the incentives in this:

Price it too high and the price goes down on listing day, bad PR all round.
Price it too low and the government shafts themselves when they are trying to make money.

It depends on how greedy the government is, I would guess very. I wonder if the bonus would offset the pricing issue?

Jon

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Davy

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#774864 5-Mar-2013 10:32

Yes but it's not about the government making money - it's about the financiaql community making money (and lots of it) at the expense on NZers from whom these shares are being taken.

Klipspringer

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#774866 5-Mar-2013 10:34

Davy: Yes but it's not about the government making money - it's about the financiaql community making money (and lots of it) at the expense on NZers from whom these shares are being taken.

Yawn!!!

ubergeeknz

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#774867 5-Mar-2013 10:35

BlueShift: Given how well other energy companies - Solid Energy - have been doing, I'd be reluctant to bet the farm on Mighty River shares.
Not that I have any money to spend on shares anyhow, I'm a kiwi dad, how many of them have cash for a share portfolio? Real kiwi mums & dads invest in property!

+1 again, rather spend $2000 (if I had it) doing repairs and such around the house, probably a better ROI

Byrned

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#774871 5-Mar-2013 10:42

jonherries: I am worried about the incentives in this:

Price it too high and the price goes down on listing day, bad PR all round.
Price it too low and the government shafts themselves when they are trying to make money.

It depends on how greedy the government is, I would guess very. I wonder if the bonus would offset the pricing issue?

Jon

If you're serious about investing, it isn't about what happens on listing day, but where you see the company going in the long term, how that will effect the long term share price, and most importantly, what the dividend return is.

But in answer, yes, I plan to buy what I can get my hands on. The offer of the incentive and the likely dividends are what's attracting me.

networkn

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#774872 5-Mar-2013 10:47

Davy: Yes but it's not about the government making money - it's about the financiaql community making money (and lots of it) at the expense on NZers from whom these shares are being taken.

Boy oh boy one in every thread!

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grant_k

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#774874 5-Mar-2013 10:49

Byrned: If you're serious about investing, it isn't about what happens on listing day, but where you see the company going in the long term, how that will effect the long term share price, and most importantly, what the dividend return is.

But in answer, yes, I plan to buy what I can get my hands on. The offer of the incentive and the likely dividends are what's attracting me.

Well said.

I have the same idea, to buy as much as I can get my hands on. Some info. I have seen suggests that applications over $10k are likely to be scaled. So my wife and I will definitely be putting our hands up for at least $10k each. I just picked up some Sky TV shares for $4.85 as they are another stock which offers a good dividend yield.

jonherries

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#774875 5-Mar-2013 10:51

Byrned:
jonherries: I am worried about the incentives in this:

Price it too high and the price goes down on listing day, bad PR all round.
Price it too low and the government shafts themselves when they are trying to make money.

It depends on how greedy the government is, I would guess very. I wonder if the bonus would offset the pricing issue?

Jon

If you're serious about investing, it isn't about what happens on listing day, but where you see the company going in the long term, how that will effect the long term share price, and most importantly, what the dividend return is.

But in answer, yes, I plan to buy what I can get my hands on. The offer of the incentive and the likely dividends are what's attracting me.

Interesting. From a long term perspective:

Are you concerned by the lack of growth in demand for power?
Or the thought that RioTinto may close Tiwai?

The reason I mentioned the list price on float day was whether it would be better to wait until then to buy, if the price goes down you get more investment for your money?

Jon

jonherries

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#774878 5-Mar-2013 10:53

grant_k:
Byrned: If you're serious about investing, it isn't about what happens on listing day, but where you see the company going in the long term, how that will effect the long term share price, and most importantly, what the dividend return is.

But in answer, yes, I plan to buy what I can get my hands on. The offer of the incentive and the likely dividends are what's attracting me.

Well said.

I have the same idea, to buy as much as I can get my hands on. Some info. I have seen suggests that applications over $10k are likely to be scaled. So my wife and I will definitely be putting our hands up for at least $10k each. I just picked up some Sky TV shares for $4.85 as they are another stock which offers a good dividend yield.

The interesting thing to me about this was the news that NewsCorp are selling their holding. This should depress the share price (I heard they were selling at a 10% discount to Fridays price) and you could get more for your money? I do agree that Sky TV have some good underlying fundamentals which means they are close to a monopoly, which means good returns as long as they are efficient.

Jon

jonherries

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#774879 5-Mar-2013 10:55

networkn:
Davy: Yes but it's not about the government making money - it's about the financiaql community making money (and lots of it) at the expense on NZers from whom these shares are being taken.

Boy oh boy one in every thread!

Didn't even bother to read the thread title and first post I guess.

Jon

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