Stock of the Week - Reprise 5: Contact Energy Ltd

Contact Energy Ltd [CEN.NZX] has been a good trading stock over the last couple of years and since I last pointed out that fact in October the stock has put on nearly 50c or around 9%. A pretty good short term return.

From approx $5.70 in October 2010 to be trading at $6.18 at time of writing the stock is fast approaching a ceiling of around $6.25 it has reached several times over the last 2 years or so. (see 2 year chart above)

A second more rarer ceiling of around $6.50 is not far away.

If you have been trading CEN, and you of course will already be watching the stock closely if you are, you should be now deciding if you want to let your luck run or bail out and wait for the next fall in the stock price down to its regular 18 month floor of just above $5.50.

A good opportunity to take some profits off the table and to watchlist it for a buy on the way down,

By on weakness below 6 bucks.

Stock of the Week Series

Pumpkin Patch Ltd
Fisher & Paykel Healthcare Ltd
Sky City Entertainment Group Ltd
Reprise 4: Contact Energy Ltd
Reprise 3: Contact Energy Ltd
Delegats Group Ltd
Reprise 2 : Contact Energy Ltd
Reprise: Contact Energy Ltd
Restaurant Brands
NZ Refining
Ryman Healthcare
Mainfreight Ltd
Fisher & Paykel Healthcare
Xero Ltd
Auckland International Airport
Sky City Entertainment Group
Burger Fuel Worldwide
Michael Hill International
Contact Energy Ltd
The Warehouse Group
Fisher & Paykel Appliances
Reprise: NZ Refining Ltd


Contact Energy @ Share Investor

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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Consumer Alert: Rusty Kia K2900 Commercial Vehicles

I bought a brand new Kia 2900 commercial vehicle back in May from Giltrap Holden over here on the North Shore of Auckland for my Landscaping and Gardening business. Excellent specs, air con, electric this and that, great stereo, good hauling capacity and more power under the hood than most.

All for an excellent price of $28,000.00 - I haggled down from $34,000.00, I am that sort of guy.

The only problem is that there was surface rust all over it that you really couldn't see when buying.

Reluctantly Giltrap Holden had a look at it and had 2 goes at removing what was there but really were incapable of doing a proper job.

This was then forwarded onto Craig Buckley, National Sales manager for Kia, who personally came to my house to rectify the problem (excellent service from him) and to cut a long story short the job was done well and came back last week all rust proofed and shinny and better than new - save an aerial that wasn't screwed back on.

The only problem is that the rust issue was a systemic one that all these vehicles had and Chris said they had been withdrawn from sale which I agreed should be the case.

When I asked if Kia was going to contact other Kia K2900 owners about this rust issue though Chris said no and it would be up to customers to complain.

So this is a warning to owners of Kia K2900s and prospective buyers because Kia is still selling these vehicles.

This is not good enough and I thought a recall of the affected vehicles was in order.

Not good enough Kia.


Related Links

Email Kia National Sales Manager Graig Buckley
Mobile - 021 246 0779
Direct Line - 09 573 3261


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c Share Investor 2010

Share Investor Portfolio: Value @ 6 December 2010...

The Share Investor Portfolio was marginally up on last weeks portfolio update. The portfolio was up by 0.03% or $369.94. As you might expect from this nothing much moved at all. The bulk of the portfolio, SKC, was down by 2c and other shares moved marginally up to take up the slack.

The total of unspent dividends in the bank from the 2010 earnings year is $16631.93 at close of reporting season for 2010. There are also approx $50000.00 in tax credits earned from the portfolio since it began in late 2002.

Share Investor Portfolio as at 17:30:00, Friday 03 December, 2010 (NZDT)

Stock	Quantity	Cost price	Total cost	Market price	Market value	Change	%
AIA	2,000	$1.700	$3,400.00	$2.090	$4,180.00	$780.00	22.94%
AIA	2,000	$1.510	$3,020.00	$2.090	$4,180.00	$1,160.00	38.41%
AIA	803	$2.150	$1,726.45	$2.090	$1,678.27	$48.18	2.79%
AIA	445	$0.000	$0.00	$2.090	$930.05	$930.05
AIA	64	$1.650	$105.60	$2.090	$133.76	$28.16	26.67%
ASBPB	2,946	$0.000	$0.00	$0.705	$2,076.93	$2,076.93
ASBPB	7,054	$1.000	$7,054.00	$0.705	$4,973.07	$2,080.93	29.50%
BGR	438	$0.000	$0.00	$1.420	$621.96	$621.96
BGR	2,562	$0.990	$2,536.38	$1.420	$3,638.04	$1,101.66	43.43%
FBU	266	$0.000	$0.00	$7.950	$2,114.70	$2,114.70
FBU	848	$9.750	$8,268.00	$7.950	$6,741.60	$1,526.40	18.46%
FPH	3,000	$2.350	$7,050.00	$3.120	$9,360.00	$2,310.00	32.77%
FPH	541	$0.000	$0.00	$3.120	$1,687.92	$1,687.92
FPH	1,459	$3.720	$5,427.48	$3.120	$4,552.08	$875.40	16.13%
FRE	1,882	$0.000	$0.00	$3.040	$5,721.28	$5,721.28
FRE	6,749	$3.630	$24,498.87	$3.040	$20,516.96	$3,981.91	16.25%
GFF	541	$0.000	$0.00	$1.820	$984.62	$984.62
GFF	1,459	$2.330	$3,399.47	$1.820	$2,655.38	$744.09	21.89%
HLG	244	$0.000	$0.00	$4.250	$1,037.00	$1,037.00
HLG	756	$2.530	$1,912.68	$4.250	$3,213.00	$1,300.32	67.98%
KIP	190	$0.000	$0.00	$0.990	$188.10	$188.10
KIP	810	$1.480	$1,198.80	$0.990	$801.90	$396.90	33.11%
MFT	1,000	$7.960	$7,960.00	$7.480	$7,480.00	$480.00	6.03%
MFT	1,838	$8.000	$14,704.00	$7.480	$13,748.24	$955.76	6.50%
MFT	657	$0.000	$0.00	$7.480	$4,914.36	$4,914.36
MFT	1,505	$4.200	$6,321.00	$7.480	$11,257.40	$4,936.40	78.10%
MHI	1,646	$0.860	$1,415.56	$0.810	$1,333.26	$82.30	5.81%
MHI	7,000	$0.630	$4,410.00	$0.810	$5,670.00	$1,260.00	28.57%
MHI	718	$0.000	$0.00	$0.810	$581.58	$581.58
MHI	636	$1.050	$667.80	$0.810	$515.16	$152.64	22.86%
PPG	31	$0.000	$0.00	$0.290	$8.99	$8.99
PPG	1,500	$0.440	$660.00	$0.290	$435.00	$225.00	34.09%
PPG	1,004	$0.800	$803.20	$0.290	$291.16	$512.04	63.75%
PPL	1,000	$3.090	$3,090.00	$1.700	$1,700.00	$1,390.00	44.98%
PPL	1,000	$2.870	$2,870.00	$1.700	$1,700.00	$1,170.00	40.77%
PPL	939	$4.200	$3,943.80	$1.700	$1,596.30	$2,347.50	59.52%
PPL	877	$0.000	$0.00	$1.700	$1,490.90	$1,490.90
PPL	1,184	$1.530	$1,811.52	$1.700	$2,012.80	$201.28	11.11%
RYM	459	$0.000	$0.00	$2.190	$1,005.21	$1,005.21
RYM	4,586	$1.970	$9,034.42	$2.190	$10,043.34	$1,008.92	11.17%
SKC	5,750	$7.430	$42,722.50	$3.130	$17,997.50	$24,725.00	57.87%
SKC	1,000	$7.600	$7,600.00	$3.130	$3,130.00	$4,470.00	58.82%
SKC	2,750	$7.700	$21,175.00	$3.130	$8,607.50	$12,567.50	59.35%
SKC	1,431	$8.750	$12,521.25	$3.130	$4,479.03	$8,042.22	64.23%
SKC	25,085	$0.000	$0.00	$3.130	$78,516.05	$78,516.05
SKC	899	$4.720	$4,243.28	$3.130	$2,813.87	$1,429.41	33.69%
STU	78	$0.000	$0.00	$2.150	$167.70	$167.70
STU	322	$4.740	$1,526.28	$2.150	$692.30	$833.98	54.64%
WHS	4,500	$3.730	$16,785.00	$3.740	$16,830.00	$45.00	0.27%
WHS	6,979	$6.000	$41,874.00	$3.740	$26,101.46	$15,772.54	37.67%
WHS	2,880	$0.000	$0.00	$3.740	$10,771.20	$10,771.20
WHS	641	$3.710	$2,378.11	$3.740	$2,397.34	$19.23	0.81%

15.16%

	Total cost	Market value	Change
	$278,114.45	$320,274.27	$42,159.82

Share Investor Portfolio @ Share Investor

Share Investor Portfolio: Value @ 29 November 2010
Share Investor Portfolio: Value @ 22 November 2010
Share Investor Portfolio: Value @ 15 November 2010
Share Investor Portfolio: Value @ 8 November 2010
Share Investor Portfolio: Value @ 1 November 2010
Share Investor Portfolio: Value @ 25 October 2010
Share Investor Portfolio: Value @ 18 October 2010
Share Investor Portfolio: Value @ 11 October 2010
Share Investor Dividends

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Pike River Coal Ltd: What's it Worth?

What is Pike River Coal Ltd [PRC.NZX] worth now after 4 explosions thus far have ripped apart the mine and trapped the bodies of 29 miners in its tunnels?

It is hard to say because investigators have yet to have a look at what damage might have been done and if the fire that is now raging in the coal seam can be put out and how much it would cost to get the mine back into production again.

Coal mine fires are extremely hard to extinguish and can burn for very long periods so Pike River may never go back into production. If the fire can be contained it will cost many 10s of millions to repair the damage. At present the company is trying to fashion some kind of remedial fire dampening to allow rescuers into the mine.

With billions of dollars of coal in the ground left to extract there is clearly an incentive to restart this mine but what is PRC now worth considering all these variables and the extra cost of getting the mine back into production?

The market has marked the share price down to around 20c per share with large bids down below the 10c mark. See current market depth below:

Buyers	Buy Quantity	Prices	Prices	Sell Quantity	Sellers
2	10,000	$0.190	$0.190	12,211	2
1	20,000	$0.160	$0.200	197,636	1
1	21,410	$0.150	$0.210	4,204	1
1	2,000	$0.100	$0.220	7,500	1
1	40,000	$0.090	$0.250	10,000	1
1	15,000	$0.080	$0.260	5,145	2
1	70,000	$0.060	$0.270	35,644	2
4	46,000	$0.050	$0.280	27,207	1
5	487,200	$0.020	$0.290	9,000	1
2	500,000	$0.010	$0.300	15,000	2
19	1,211,610			323,547	14

There were actually accidental trades in PRC shares made yesterday, ironically after a 2 minute halt in trading on the NZX to mark the 2 minute silence for the Pike River 29 as New Zealand remembered them and these trades were passed in at 20c each.

The market last traded PRC shares at 88c on November 22 when the shares were put into a trading halt but clearly Mr Market still sees some value in the company and are cautiously optimistic that the coal fire can be extinguished.

Perhaps a better indication of what value the market puts on PRC shares is in the trading of 30% holder in PRC NZ Oil & Gas Ltd [NZO.NZX]. After a trading halt was lifted on NZO shares the share price dropped by about 30%, (see chart below) effectively placing zero value on its investment in PRC and the NZO has been trading in a range of 90-94c since trading in that company recommenced on November 23.

It is still unclear as to just when PRC shares will recommence trading but investors will need to wait until CEO Peter Whittall and his men are able to take a closer look at the damage to the mine and assess the possible costs involved.

If the fire is able to be contained then clearly there will be much motivation to get the mine back into working order because of the large coal deposits yet to be mined. Whether PRC is able to get financing to allow their business to continue is another story.

It will provide opportunities for foreign mining companies to buy this company for a deep discount and for prospective smaller investors to take a smaller punt in the hope the mine goes back into production.

Lets hope they do.

Related

Pike River Facebook Supporters Page

Related Share Investor Reading

NZ Oil & Gas Ltd: Impacted by Pike River Coal
Long Term View: NZ Oil & Gas Ltd

PRC @ Share Investor

Pike River Coal Shares set to Plunge

Discuss PRC @ Share Investor Forum
Download PRC Company Reports

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Allan Hubbard: Man Out of Time - By Virginia Green







c Share Investor 2010