Three reasons I won't buy Meridian shares
Are you buying Mighty River Power shares?
Will you be buying shares when our state assets go on the block? Our readers give us their view on the sales.
I will not be buying Meridian shares for three reasons.
1. I am philosophically opposed to selling state-owned assets, especially to the wealthy few who can afford them. It appears it is going to be a fire sale, to make matters even worse.
2. Given the sustained fall in Mighty River shares, it makes no sense to pay the list price when they are highly likely to be purchased at a lower price a few weeks after the final instalment is paid.
3. John Key and National have paid $30 million to Rio Tinto to keep Tiwai Point open, for a small extension to their decision to close. I think this is bound to end in tears. Either Rio Tinto will come back for another bite of the apple, or they will close, resulting in a drop in the price of electricity and a fall in electricity share prices.
It seems a bit rich to subsidise big business (imagine the outcry from the Nats if it had come from any other political party), so that the average consumer pays an artificially-held price for electricity, so that the top 2 per cent get sale price shares.
The "saving jobs in Invercargill" is also a bit rich, the Government has little sympathy for thousands of others who have lost jobs in lower profile business collapses.
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