Forum Archive Index - April 2000

["Osbert Sun" <osbert.sun@xtra.co.nz>]

Phil,

I agree with you that if Edison decided to sell some or all of its holdings
in CEN for whatever reason, the downward trend could continue for some time
yet. However, the question is why would Edison want to sell at less than
half what it paid for in the first place. The fundamentals of the company
have not changed if not better. I'm in for Edison to up its stake. But as
you said, there is an uncertain element at this stage.

Kind regards,
Osbert

----- Original Message -----
From: "Phil Eriksen" <phil@acepay.co.nz>
To: <sharechat@sharechat.co.nz>
Sent: Friday, April 28, 2000 9:35 AM
Subject: Re: [sharechat] Contact Energy - an attractive time for Edison
Mission to increase its holdings
> 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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