GNE - Genesis Energy

[Raven]

The one that is causing me a problem is how to cover Basil's boating expenses.?
SAN with a net yield of 2.07% may only cover one days boating.
Do not think the pension would cover it either.

Boating can be very expensive, that's for sure. Perhaps a port would be appropriate? POT 3.3% or NPH 4.6%?

[Basil]

Well that's an easy one.
You want to cover rates on your PROPERTY,therefore you need income from a PROPERTY company.
KPG covers retail,build to rent and property development.
Gross yield 8.6 %....Net yield 6.08 %.

The one that is causing me a problem is how to cover Basil's boating expenses.?
SAN with a net yield of 2.07% may only cover one days boating.
Do not think the pension would cover it either

You'd be right about the pension. not covering it. Thankfully, Tina, Todd and I are great mates. My #1 investment. Turners bought me a new car last year, covers all the running costs of that and the boat as well 

[Basil]

Bought some more GNE at $2.15 today.  No matter what happens overseas with the trade war people are going to continue to use power and GNE is on a gross yield of 9.25%.  With the RBNZ almost certainly cutting interest rates tomorrow and again on 28 May, that's a highly attractive yield for a very defensive stock in a falling interest rate environment.

[snapiti]

nice defensive play, a sign the hound is wise and is getting closer to retirement age......lol.....my pick is you are a little early on this one.
I am torn every day I wake up knowing some of my portfolio is getting beaten up yet rubbing my hands together gladly awaiting opportunities to splash out with my 60% cash position. Some buys will be aggressive some will be defensive.
I will take pride if I can buy some GNE at a discount to the hounds entry point.
   

[lorraina]

GNE's dividend will be paid tomorrow the 10th.
Only shareholders will receive it...lol

[xafalcon]

Bought some more GNE at $2.15 today.  No matter what happens overseas with the trade war people are going to continue to use power and GNE is on a gross yield of 9.25%.  With the RBNZ almost certainly cutting interest rates tomorrow and again on 28 May, that's a highly attractive yield for a very defensive stock in a falling interest rate environment.

How did you ever manage to reconcile this with your deep seated hatred of all things genesis? The yield has not changed (its decreased in fact, as you delightedly pointed out previously and you predicted it to fall again), OCR was always going to fall fast, people and businesses were always going to need more and more electricity. Add to this your huge concerns about the dividend CPI indexing uncertainty hasn't changed, ESG concerns remain, ongoing imputation credit levels. You wouldn't touch this investment, and tried to shoot down anyone who differed from your world view. Even when numerous relevant metrics were tabled, you "knew better"

Now you've not only purchased, but topped up with a stock you were never ever going to touch for love nor money for so many perceived reasons. Irony at its finest.  Have a slice of humble pie

The crazy thing is, the underlying risk profile appears to have deteriorated in the last quarter on several fronts, but I'm sure you're fully across this......

[Basil]

Hatred is a strong term.  Yes, I have reservations and concerns about GNE but we are very close to the bottom of its price history in recent years and they are very defensive, and I think all my reservations are now priced in, especially with interest rates headed materially lower over the next year.

The crazy thing is, the underlying risk profile appears to have deteriorated in the last quarter on several fronts, but I'm sure you're fully across this......

Not sure if you have noticed what's going on with the risk profile of technology and momentum names in the last few months and in particular in the last week, especially overseas...stock and sector risk is a relative thing to other sectors and other markets.  Maybe if you had north of 40 years investing experience, you'd understand that better.

Maybe, rather than being critical you could actually add some value here and you could enlighten us with your thoughts on what is a better defensive play on the NZX at present.  I'm fully on board with TRA and HLG so no point suggesting those two.

[snapiti]

Beagle whilst I understand your need to put your capital in a safe haven with good yield, I would have thought now is a very risky time to do that.
You could have purchased GNE at a lower price a few times not so long ago, so I would have thought paying above recent lows during a risky time for capital is not as smart as you usually are.
 

[Basil]

It's very close to recent multi year lows to be fair.  Additionally, its only very recently become clear the OCR is going to go well below where economists thought it would settle.   Global events could quite conceivably throw our economy back into recession according to official GDP numbers.  In reality, apart from the boom times in some primary sectors, many parts of our economy have yet to exit the recession they've been in for years.  2.0%- 2.5% OCR potentially on the cards for 2026, maybe even less.  Nobody would have been thinking that 2 weeks ago.  Also, for context, this was funded by selling some of my Barramundi shares at 71 cents several weeks ago, (down 13% since then).  Also FYI - Cash is currently ~ 40% of my portfolio.

[Shareguy]

FB say Sector offering good value and an attractive yield
All of the electricity stocks are offering good value at present. Dividend yields are attractive relative to bonds and are expected to grow (with the possible exception of GNE in the short term) as new generation developments are commissioned. MCY is the most attractive investment on a relative basis and will be a key beneficiary of expected rain.

[Basil]

nice defensive play, a sign the hound is wise and is getting closer to retirement age......lol.....my pick is you are a little early on this one.

You're right Snapper, I am getting closer to retirement age.   I think your second post along similar lines was probably unnecessary mate, given the highlighted comment above, but for the record, my average entry price is $2.14.  Happy to see how it goes and let the share price do the talking.

[Ricky Bobby]

Very nice divvy hitting the account this morning! Energy sector is going to get some attention while things are so turbulent I recon.

[Basil]

Very nice divvy hitting the account this morning! Energy sector is going to get some attention while things are so turbulent I recon.

Yeap, just over $6,600 should cover this year's energy bills at least twice over 

[Basil]

https://www.nzherald.co.nz/business/companies/energy/huntly-power-unit-may-stay-operational-until-2035-genesis-confirms/LGRKYZQYKVEZPG4QWRP7XV4HSY/

[Basil]

Astute observers of TA would have noticed a very nice uptrend forming for GNE. 
I watched this the other day, https://www.nzherald.co.nz/business/markets-with-madison/markets-with-madison-behind-port-of-auckland/5PGPF7J4ATJYY3YOW4TKXJ2SYY/ Markets with Madison, ports of Auckland.  From memory, a coal shipment arrives for GNE every 10-14 days.  Importing heaps this year to keep the heaters running after super low inflows into catchment area's for all other Gentialiers.  I think the Rankines are showing their worth.  Other interesting snippets from that interview were that roll-on-roll off volume down 40% showing vehicle importation down heaps.  Despite this Turners market report the other day said dealer to public sales, again from memory up just on 7% in April.  Shows the value of Turners buying nearly all their stock in N.Z. and if imports are down that much, Turners market share must be growing very strongly indeed.  Its hard for other dealers to compete with the marketing brilliance of Tina !

Anyway...back to GNE...very pleased indeed with my recent acquisitions at close to multi year lows.   Share price should get another good boost when the RBNZ drops interest rates by 50 bps on 28 May.  Headed back to the $2.70's ?