Forum Archive Index - April 2000

["Michael Gore" <michgore@paradise.net.nz>]

I'm sure I heard on the TV3 news that liability for flood damages lay with the previous owner i.e. NZ Govt. and that the Govt. had accepted liability at least in principle and are working on a possible buyout of affected properties.  Is it just that people don't realise or are choosing to invest elsewhere just in case?  Or maybe disillusioned "Mum and Dad" investors who perceived the Contact float to be a vote buying exercise prior to last years election (keeping in mind the price paid by Edison) are now selling out.  Can't see any more substantial reason, but I agree it is scary to see the price continue to drop even despite the buyback.  I bought more immediately I heard the buyback news thinking then price might come back to $3.  regards michael  

----- Original Message -----

From: Chris

To: sharechat@sharechat.co.nz

Sent: Thursday, April 27, 2000 4:56 PM

Subject: Re: [sharechat] Contact Energy

Depends what you bought them for.  Their profitability isnt really an issue at present, although they do have concerns regarding possible liability over flood damage as discussed previously.  Generally it is just suffering like many of the other value stocks, such as NUF, GPG, the Fletchers, CAH etc etc etc.  so you may have to wait a while to see a price north of $3 again.

 

I cant see too much more downside - the net yield is now around 10%, isnt it?  That must start attracting retail investors' attention at some point.  One thing that concerns me, though, is the level it has drifted even with the support of the current buy-back, so maybe it can go a bit lower yet.

 

Sorry, not a clear-cut answer.