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Join us today at 1 p.m. for a live web interactive with Martin Hawes who will discuss the SOE share offer

Personal Finance
Join us today at 1 p.m. for a live web interactive with Martin Hawes who will discuss the SOE share offer
20th Aug 12, 4:23pm by Amanda Morrall

Wondering whether to dip into that term deposit and pick up some shares in our state owned enterprises beginning with Mighty River Power?

Financial writer and advisor Martin Hawes will share his three-stage process for investing as well as answer your questions about the share offer process.

It remains unclear when the initial public offering will take place however now is the perfect time for investors to study up on the issues and prepare themselves.

Join the discussion as a registered user on interest.co.nz or as a friend of interest.co.nz on Facebook.

Martin can not give personalised investment advice but is able to discuss in general terms the IPO process and some considerations for whether it makes sense for you.

We welcome your comments below. If you are not already registered, please register to comment

Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.

9 Comments

by  SK  |  20th Aug 12, 5:11pm 1345439493

I can not wait for the opportunity to buy shares in something I already own.

What a deal.

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by  stp  |  21st Aug 12, 8:28am 1345494484

Should someone report it to police as a theft?

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by  scarfie  |  22nd Aug 12, 10:43am 1345589028

Well if you can demonstrate that you own it, yes. Perhaps "using a document" may be fore appropriate. However don't expect police to act, it is likely you would have to submit a private prosectution under the crimes act. Could be done however, wasn't it Trevor Mallard that was charged with assault that way?

 

Would be damn interesting to see it tried.

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by  John Kelly  |  21st Aug 12, 8:43am 1345495397

We will not be buying; it just encourages them.

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by  goNZ  |  22nd Aug 12, 10:53am 1345589599

James bonds more likely

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by  Boatman  |  22nd Aug 12, 11:41am 1345592488

Some comments and questions for Hawes below

I cant wait , but it depends on the price / yield , it must at least  be better than Gilts ( Goverment Bonds) and way over the current bank deposit rate.

In other words for me this would need to be a yield of the current  inflation% plus , say 6%.

It would then  give me a net after tax yield of around 5% for me to be happy , anything over that and I would be delighted .

What forward yield does Hawes see?

Personally , I dont see sparks in the price after listing , because Parastatals take time to transform from fat- top- heavy bureacracies to slim profit driven entities.

What is Hawes view on initial  post listing  price movements ?

Given my view about quick profit taking would one need  a very long term view for capital appreciation?

Is this an accuratre assumption and given the recent scams in Feltex, Allied Farmers etc , are SOE's the likely to be the kind of share you can put into the bottom drawer and not worry about or forget about ?

I think it this is a brilliant opportunity to invest in NZ  would be really dumb for Kiwi's not to invest in their own  infratructure instead of buying shares in Austrlalian oil pipelines and stuff like that .

What is Hawes view?

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by  Kevin  |  22nd Aug 12, 12:51pm 1345596718

From year zero we are told to borrow to buy income generating assets...why sell the net that catches the fish unless you desperately need the money for something else? - especailly when we already own those assets...it's against the grain for me...won't be buying on principle...  

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by  ngakonui gold  |  22nd Aug 12, 1:02pm 1345597324

we might own the assets eg power co etc but we certainly pay for it every month and the bill continues to grow steadily.

instead of paying the govt a divedend why don't they lower the price to the consumer.

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by  Craig Simpson  |  22nd Aug 12, 4:48pm 1345610936

Based on your example you would therefore be expecting the current positive correlation between the Gold price in US$ and US/NZ$ cross rate to break down (or turn negative?).  

IMHO I don't think this will happen any time soon

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