Forum Archive Index - April 2000

[Phil Eriksen <phil@acepay.co.nz>]

Osbert Sun wrote:
> 
> I suppose that you all have read the article in NZ Herald this morning
> about the intention of Edison Mission to increase its holdings in
> Contact Energy. Yes the recent sell-down in CEN shares has provided a
> golden opportunity for Edison Mission to seek control of the company
> as it has always intended. For a company with quality assets, dominant
> market position, and long term prospects such as Contact Energy, the
> current share price doesn't really do its justice. Yesterday's large
> trading in CEN was related mainly to oversea's funds existing their
> positions. CAH and Fletcher camp suffered the same fate if anyone
> cares to observe. Well enough said about CEN. I guess the focus of the
> day will be FRO. An interesting day ahead?
> 
> Kind regards,
> Osbert Sun

Hi Osbert,

If Edison try to get the remainder of the shares, the price might go
up.  Edison are not swimming in cash.  What if the unthinkable happens
and they have to flick some/all of their shares?  What does that do to
the share price?  I dunno, the fundamentals are moderate to good, but
while some traders love a bit of volatility, uncertainty and guessing
games, i'm not sure I do.  I do concede tho that the current share price
is low and attractive if you are prepared to ride out the prospect of it
falling further.

Cheers,
Phil

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