Forum Archive Index - October 2000

["Phil Boeyen" <pboeyen@sharechat.co.nz>]

Hi John

 

You may like to take a look at this article on the CEN buyback for further info:

http://www.sharechat.co.nz/articles/20001006-CENbuybackcontinues.shtml

 

Basically as I understand it as long as the company considers the price of shares to continue to provide the best use of shareholder funds then the buyback will continue to the 5% level.  CEN has a target price obviously but it is not public.

 

The profile of the company took a dive over its problems with Otahuhu power station breaking down, CEO leaving and legal dispute with Meridian over pricing (resolved last week), but there has been some good news with Australia a possible growth story and also some see it as a defensive stock and these could account for its recent rise

 

Am not sure about long-rumoured Edison purchase but perhaps someone else can help?

 

Cheers,

Phil Boeyen

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

From: John and Beth Schwartfeger

To: sharechat@sharechat.co.nz

Sent: Wednesday, October 25, 2000 4:31 PM

Subject: [sharechat] CEN

I noticed yesterday that Contact were buying back their own shares at $2.83 odd average per share. Rather a higher figure than they have been paying of late. Would this indicate that

a:) They think their shares are still undervalued even at this figure? and

b) Could it mean they are trying to speed up their buyback program with purhaps some strength behind Edison wanting to increase their stake?

Any ideas?

Maybe a good bottom drawer (or is that draw) share to hang onto for a bit longer??

Thanks..  John