Last time we talked about this one it was selling at about $7.50 Little did I know about it when I wrote about it in June that yesterday it was trading at $7.68.
It has traded at a high of $9.05c and was savaged recently when Rio Tinto decided it was going too do its semi annual raid of the taxpayer dollar by sticking its hand out - BUT quite rightly Labour said NO.
That is the ONLY thing this writer sees fit that Labour have done.
It is paying a good dividend of 5.7% which is forecast to stand still next year. Pretty good return when compared with a 2.5% gain in the bank.
I know I said sell before but I have changed my mind.
With CEN only supplying 10% of the power to Tiwai Point (the smelter) that lot should be gobbled up pretty quickly should the padlocks need to come out for Rio Tinto. It means Contact Energy will not have to spend as big for many many years on new power sources.
But there will a few casualties if Rio decide to go - those with high debt may need to start looking around for cheaper rates.
You would do well to have a few thousand of these to pay the power bill every year.
c Share Investor 2019
