Monday, June 8, 2009
Cadbury's chip off the old family block & lose customers
Posted by Share Investor at 2:04 PM 0 comments
Labels: Cadbury, consumer, Whittakers Chocolate
(UPDATE) TVNZ Follows China with Wendy Petrie censorship
Posted by Share Investor at 1:03 PM 0 comments
Labels: censorship of internet, TVNZ, wendy petrie
Stock of the Week: Contact Energy Ltd
In this Stock of the Week I am going to look at the electricity generator and retailer Contact Energy Ltd [CEN.NZ]
The company has had short-term profit speed bumps, with another profit downgrade out today, but long-term the company will continue to grow its profit.
A part of a quadopoly, its generation assets alone should put it in anyone's bottom draw. Its attractiveness in today's turbulent stockmarket background made it one of my picks back at the end of last year and the solid nature of its profit, during an economic downturn and in better times should make it the backbone of anyone's portfolio.
There is another good reason to own the stock, especially if you have a short financial attention span. Origin Energy, Contact's majority owner, is likely to make another play at getting control of the whole company. Origin would have to pay close to double today's market capitalisation.
Beware though, there are drawbacks to owning shares in the company-the management, inside Contact and those that hold the purse strings at big daddy Origin are awful managers of this asset.
Yes a monkey could run an electricity company and that is exactly what you get with these guys but they will always make money under good and poor management.
Good luck!
Disclosure - looking at buying
Stock of the Week Series
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Contact @ Share Investor Blog
MarketWatch: Contact Energy - June 2009
MarketWatch: Contact Energy - Jan 2009
Contact Energy looks bright during dark times
Share Investor's 2009 Stock Picks
Follow the Monopoly Board
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Recommended Amazon Reading
The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel (Revised Edition) by Benjamin Graham
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c Share Investor 2009
Posted by Share Investor at 11:25 AM 0 comments
Labels: Contact Energy, Stock of the Week: Contact Energy Ltd
MarketWatch: Contact Energy
Contact Energy Ltd [CEN.NZ] have come out with a profit warning this morning, lower than guidance made by the company in January 2009.
Profit for Contact’s 2009 full year is expected to be 30 –33 per cent less than the year ending 30 June 2008.
With the share price finishing at $NZ5.80 at market close on Friday there is going to be a good opportunity to get shares today a sale price - the market is going to savage Contact.
Keep in mind though that the market should have anticipated the downgrade as all the signs were there for a slight profit drop from Contacts own guidance in January 2009.
A great chance to stock up for this good long-term company.
Remember, it is still making a profit and will only continue to increase those profits over the long-term.
Related Share Investor Reading
Marketwatch: Contact Energy
Contact Energy looks bright during dark times
Share Investor's 2009 Stock Picks
Follow the Monopoly Board
Contact Energy Investor Info
Related Amazon Reading
The End of a Natural Monopoly: Deregulation and Competition in the Electric Power Industry by Peter Grossman
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c Share Investor 2009
Posted by Share Investor at 9:29 AM 0 comments
Labels: Contact Energy, profit downgrade