GNE - Genesis Energy

[winner (n)]

A non story really but Genesis owned company upset punters

https://businessdesk.co.nz/article/markets/frank-energy-pulls-ad-after-complaints-about-body-shaming

Genesis-owned power company Frank Energy has pulled a TV ad that featured a woman in a hazmat suit shaving the backs of bald men after viewers complained it made fun of men with specific body characteristics.

Prob paywalled

[Ricky Bobby]

Bloody hell!

[winner (n)]

So Genesis buy 65% of Chargenet for $64m

Seems average cost if the 400  charging stations is $250,000

No doubt the future is charging exorbitant amounts for punters to charge up EVs


https://announcements.nzx.com/attachment/428617.pdf

[winner (n)]

See our mate Bruce Sheppard is one of the shareholders in Chargenet

Good on him

[Basil]

Had a good chuckle at this bit.  Rather conveniently talking just about pure operational cost and not mentioning the extra capital cost and the horrendous depreciation rate of EV's or the range anxiety that goes with them.

Even with road user charges and a mix of at home and public charging, running an EV is still more cost effective than an ICE car.

[BlackPeter]

Had a good chuckle at this bit.  Rather conveniently talking just about pure operational cost and not mentioning the extra capital cost and the horrendous depreciation rate of EV's or the range anxiety that goes with them.

Just wait for the tsunami of cheap Chinese EV's which will hit our shores soon. Costs are lower than comparable ICE's - and certainly much cheaper and better than the Tesla cr*p and undercutting as well the
European competition.

Here are some models they sell already in Australia:

https://www.carsguide.com.au/ev/advice/chinese-electric-cars-top-five-electric-vehicles-from-china-82842

Not sure about range anxiety either with more than 600km with one charge.

[Basil]

Had a good chat with Todd Hunter a few months back when updating my Holden.
He warned me off EV's.  He said Turners are the official trade in agents for Tesla and the residual values he's seeing on them and other EV's is showing these vehicles up as having horrendous depreciation rates and overall ownership costs that are shockingly high, vastly higher than hybrid or even ICE vehicles.  Advised me to stick to Japanese or Korean.

Anyway...back to GNE.  I suppose as a yield proposition they might get a bounce if the RBNZ cuts by half a percent next week...but so might a lot of other high yield stocks and I think GNE's dividend history with the recent significant cut, is quite a shocker, (pardon the pun).  Just as well shareholders know they can replace old legacy generation assets with shiny new environmentally friendly ones, and they can be absolutely 110% sure there won't be yet another dividend reset 

[raW tent Buffer]

Just wait for the tsunami of cheap Chinese EV's which will hit our shores soon. Costs are lower than comparable ICE's - and certainly much cheaper and better than the Tesla cr*p and undercutting as well the
European competition.

Had my Tesla for about 18 months now, no complaints. Saved roughly $6k in petrol costs so far. Drive it into the ground and in 15 years it will have largely paid for itself, RUC included. Also not sure that range anxiety is a real concern for people living in Auckland.

[BlackPeter]

Had my Tesla for about 18 months now, no complaints. Saved roughly $6k in petrol costs so far. Drive it into the ground and in 15 years it will have largely paid for itself, RUC included. Also not sure that range anxiety is a real concern for people living in Auckland.

Glad you like your Tesla, but to really appreciate its virtues you probably need to look not just at your honeymoon period with the car (I guess, which new car has a lot of problems in the first 18 months)?, but you need to look at depreciation, repair costs (yes - cars do have accidents), accidents caused by SW faults, car fires caused by design faults and - of course - the inevitable battery replacement costs.

But whatever the outcome - we probably should discuss this on a different thread before we outstay the welcome of the GNE thread dwellers ;

[winner (n)]

GNE share price still languishing in low 200's

Can't find any compelling investment case for GNE

[LoungeLizard]

GNE share price still languishing in low 200's

Can't find any compelling investment case for GNE

Maybe languishing in the low 200's is the investment case?

I mean, at such a low price, the gross yield is 9.1%?

[winner (n)]

Maybe languishing in the low 200's is the investment case?

I mean, at such a low price, the gross yield is 9.1%?

High current yield maybe a signal of the future risks ....and cut in divies

[alkebab]

Interesting to see how GNE and MNW have tracked almost identically to each other over the last 10 years until July this year.

[LoungeLizard]

High current yield maybe a signal of the future risks ....and cut in divies

Yep, there's a few challengers for sure - Kupe being the main one atm - but I'm probably in the minority (again) who thinks that there's more upside than downside for GNE in the next 2-3 years. The pivot to renewables will start to pay off, Huntley is always going to be needed, and even if the divvy is cut further you'll probably still be getting 7% in the meantime as things sort themselves out. They've been increasing client numbers so that's an encouraging sign too.

disc. a relaxed hold.

[BlackPeter]

Yep, there's a few challengers for sure - Kupe being the main one atm - but I'm probably in the minority (again) who thinks that there's more upside than downside for GNE in the next 2-3 years. The pivot to renewables will start to pay off, Huntley is always going to be needed, and even if the divvy is cut further you'll probably still be getting 7% in the meantime as things sort themselves out. They've been increasing client numbers so that's an encouraging sign too.

disc. a relaxed hold.

Nothing in life is certain with the exception of death and taxes. However  in this case ... I am holding some GNE as well and think that the chance for them to maintain (or appreciate) their price is  better than the chance for further drops.

I guess how bad can things really turn for a generator given a lack of generation capacity and dropping interest rates (the pseudo bond effect)?