Thursday, October 10, 2013
I/S says:
Less than six months ago, National privatised Mighty River power, selling 49% of it for $1.7 billion. Now, with the share price plummeting, the company is launching a share buyback. Its pretty obviously a desperate ploy to boost the share price (and so help make the government's sale of Meridian look like a better deal), but it also reduces the whole asset-sales program into a farce. If companies have to do this, they're obviously not a very good deal. Meanwhile, those "mum and dad investors" are being fleeced by the government. "Thanks for the interest free loan, suckers!"
If this is how National's privatisations are going to work, then people have even more reason to avoid them.
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13 comments:
We owned it, then we were asked to buy it and now we are going to buy it back again. Who says John Key is not bright. Even a Nigerian scammer cant sell you something three times.
Privatisation is not working. In so many ways.
Bright like a rhinestone.
You guys should get out a little more and understand how things work.
You are confusing value and cost. Even MRP can spot a bargain.
Really, paranormal? So MRP have spotted a bargain and no one else has. Genius! They must be in the wrong business, and they should consider becoming traders and analysts. There was another electricity company that did that, now what was it called? Enron.
Enron! Classic.
Para?
Not surprising you would bring up Enron, the developer of your beloved Emissions Trading Scheme. That sums up Enron in total - they were traders, and if they could trade in non existent commodities they would. Ultimately they were a company of no substance. just like an ETS.
Whereas MRP are not traders, they are producers with assets. The next part is where you on the left have missed the point. The share price is not the value - it is only the cost. MRP value to an investor is the ongoing dividend flow. Without going back and looking up the eact figures we were were discussing at work they are currently returning over 10% on the original share price (for those that missed it it will be even greater on the now lower share price). They are not looking for capital growth but dividend return. Accordingly MRP provides excellent balance in a portfolio. but you miss that and are just playing politics.
If you had listened to any of the analysts (rather than political hacks) they had commented that MRP had a lazy balance sheet. Of course you would invest money in yourself when you have excellent forward prospects.
(BTW I do know a little about Enron and the trouble they caused - I was working in reinsurance at the time)
Have you bought MRP shares, Para?
You assume I have spare capital to invest RG. With a young family and mortgage I have other priorities. If I had money to invest I would definitely include MRP and Meridian in a portfolio balanced between growth and dividend return assets. Mind you at my stage in life there may be a greater weighting towards growth assets.
Your ignorance of things financial is sadly reflected in the wider population and is why we have issues like the finance company collapses causing so much hardship. Mind you that's a Green preference isn't it - financial ignorance for political gain, as shown in your posting I/S comments.
wow the uneducated public caused the finance companies collapse. So have they also caused the directors of these companies to be seen in a steady stream heading through courtroom doors as well. Dont swallow the capitalist line Para, it was all caused by people in positions of trust who let greed cloud their judgement. Same in 1988 and will be the same in 2022 probably. The day they let the dollar become a commodity instead of what is is meant to be, a tool is the day they made an industry that produces nothing. many people have made many dollars from the sale of MRP but have not created a single thing that has added to the countries economy.
PT - I can see why you're so biased, when you can't even read straight.
I never said the uneducated public caused the collapse. The public are suffering hardship because they made uneducated decisions to invest in finance companies. They were chasing one or 2 percent additional reward with no consideration of the additional risk.
You have a sad outlook in life if you are so jealous of others making money. Those that made money out of the MRP sale would have provided a service to earn that money. If those that wish to pay them are happy with the service why should we be worried about what others earn? Don't let jealousy make you bitter and twisted.
"You assume I have spare capital to invest RG." says Paranormal.
In fact, I asked;
"Have you bought MRP shares, Para?"
Para - you accuse Philip of not being able to read straight and I wonder if you thought about that at all.
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