Friday, July 8, 2011

Im Buying: Contact Energy Ltd

I have finally put my money where my fat mouth has been over the last few months 1, 2, 3, 4 and bought Contact Energy Ltd [CEN.NZX] shares. I haven't bought any shares since I went mad in mid 2009 and spent a good $70,000.00 on cheap shares in AIA (1,2) MFT, WHS and MHI.

I have been a patient little sod for the last few years - regular readers will notice the plethora of CEN posts I have made in that time - watching for my entry point for Contact and below $5.35 was my trigger point . I managed to pick up 9000 for $5.34 and am very happy with the price.

The CEN investment is not part of the Share Investor Long-Term portfolio I have a different strategy for this one that I cannot go into here but readers will be able to follow this investment on a daily basis as it fluctuates in value.

I bought primarily because the stock is cheap and I outlined that yesterday in a morning post (I made the CEN buy at 4.45pm) and because of the distinct possibility that majority owner Origin Energy Ltd [ORG.ASX] are keen to make a bid for the company.

The money I used was borrowed and at 5.75% the greater than 6 % gross dividend yield means that I am still ahead even if I have to hold for a year.


Contact Energy @ Share Investor

Share Investor Portfolio 2: Value @ 7 July 2011
Share Price Alert: Contact Energy Ltd 4
Share Price Alert: Contact Energy Ltd 3
Share Price Alert: Contact Energy Ltd 2
Share Price Alert: Contact Energy Ltd
Stock of the Week - Reprise 5: Contact Energy Ltd
Origin Energy asset stripping Contact Energy
Stock of the Week - Reprise 4: Contact Energy Ltd
Stock of the Week - Reprise 3: Contact Energy Ltd
Long Term View: Contact Energy Ltd
Stock of the Week: Reprise 2 - Contact Energy
Stock of the Week: Reprise - Contact Energy
Not so fast Davy Boy
Still Watching Contact Energy
Beam me up Davy
Stock of the Week: Contact Energy
MarketWatch: Contact Energy - June 2009
MarketWatch: Contact Energy - Jan 2009
Contact Energy looks bright during dark times
Share Investor's 2009 Stock Picks
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c Share Investor 2011