MRP good buy?

A share broker wrote to David Shearer and Russel Norman thanking them for sabotaging the Mighty River Power float because it would enable him to buy more shares.

He said one of the unfortunate consequences of the LabourGreen power play was that it was putting off first time investors.

They’d been prepared to dip their toes in the investment market with MRP but the uncertainty in the wake of the LabourGreen sabotage was putting them off.

So are MRP shares still a good buy?

I’m not qualified to give financial advice and wouldn’t presume to tell anyone else what to do with their money but I’ll be putting some of mine in MRP.

6 Responses to MRP good buy?

  1. I’m happy to put my money where my mouth (and my blog) is, and I will today be applying for double the value of shares that I had initially decided on.

    For Labour and the Greens to argue that the timing of their NZ Power announcement was not intended to affect the MRP sale process is so blatantly dishonest that such an argument is an insult to the intelligence of the electorate.

  2. Same here but you do realise we going to take some stick from the left if/when we make a profit, for being fat cat capitalists even though they were the ones who created some of the risk

  3. That goes with the territory Raymond. But how I choose to spend money that I have earned from my own efforts is entirely my business.

  4. Neil says:

    Been working the sharemarket since 1972, so have “degree in the sharemarket” from the University of Life. Was also on TV quiz show Mastermind twice on the subject The New Zealand Sharemarket.This is not financial advice, rather, a few points to think about.
    MRP could be a good buy, especially for the dividends they provide. Much better than the feeble bank deposit rates.
    On their fundamentals they are probably slightly overpriced, but the recent Green-Labor fiasco might change that.
    What concerns me is the way this float has taken place with no real discussion about the pro & con of investing. FMA rules have meant no analysis could be carried out by brokers/advisers close to the float.
    I will say that the Sunday Star Times has done thewmselves proud with discussions. Rod Oram’s discussion, generally Anti-National,helped encourage to my decision!!!!!!!!
    People had to make their minds up after about 270 pages of reading from a downloaded prospectus. I also didn’t like the idea of applying for a total cash price rather than a price per share- although that was adopted by the recent Fonterra float.It makes the govts job that little bit easier when eventually deciding on a price.
    For individual investors they are guaranteed $2 000 worth plus a 25% top up if they pre-registered. If the price is $2.50 you probably won’t get 1 000 shares. For long time investors that is hardly enough to be worthwhile.Small holdings are a good way to start but for long term holdings.
    Financial knowledge in NZ is at a long time low, the new FMA rules discourage newspaper coverage, investor research and seem to drive people into the arms of Financial Advisers. These FA in many cases are pushing the high commission products to their financial barely literate customers.
    Greens-Labour are using the residual fear of the sharemarket to make their case. Maybe they want to take us back to the USSR !!!

  5. Denny says:

    Neil, I like your comments about aspects of this float. Are you able and or willing to comment on how the potential excess of power from the likely closing down of Tiwai Point smelter will affect your purchase of MRP shares? This factor has me very concerned about the long term value of the shares.

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