As I said near the end of August, Contact Energy Ltd [CEN.NZX] looked like benefiting from a whopping 22% discount for their customers by holding onto present ones and eventually gaining customers from their competition.
Well, their August numbers released Monday 20, confirmed that the company only lost 400 customers compared to a combination of approx 15000 over the previous 2 months and September is looking even better from all accounts.
The share price since 18 August has risen from around 5 bucks to finish trading at $5.52 yesterday so the fortunes of the company have clearly been reflected in the share price and it looks like it might get some support at historical prices over the last 2 years of between $5.50 and 6 and a half bucks.
If August operational numbers are mirrored in September and if the market sees even small gains in customer numbers expect the market to overreact and send the share price well up from current levels.
A good medium term opportunity exists here to make some good profits.
Disc I own CEN shares in the Share Investor 2 Portfolio
Contact Energy @ Share Investor
Contact Energy look set to gain customers
I'm Buying: Contact Energy Ltd
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Not so fast Davy Boy
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Beam me up Davy
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MarketWatch: Contact Energy - June 2009
MarketWatch: Contact Energy - Jan 2009
Contact Energy looks bright during dark times
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