Ouch!
So Mighty River Power shares were talked up to $2.80 but they will actually cost $2.50?
OUCH!
That’s the market saying Labour/Green are next Government.
The real insult however is how National screamed how popular this sale would be when in fact only 2.5% of the country ended up buying shares. These are probably also the very same NZers who received the bulk of the $2billion in tax cuts National have given the wealthiest NZers since coming to power.
So we lost a public asset to the richest NZers from tax cuts that have left a gaping hole in the social infrastructure that the 25% of kids living in poverty are trapped in?
Wonderful. With National increasing debt in borrowing from $10billion to over $55billion since taking power, the NZ economy is ripe for another tumble and the only nests being feathered for that rainy day are the very born to rule National Party elites that Aaron Gilmore so perfectly represents.
What’s the bet that now it’s $2.50 a share, we’ll start hearing the ‘economic sabotage’ meme het louder and louder by the mainstream media?
Horrifically, under the new GCSB laws, the Labour Party and the Green Party could be spied on for their electricity proposal because it breaches the GCSB’s newly defined focus of the economic well being of the neoliberal corporate hegemonic structure.
If the arse does skid out from under the economy, watch for Patrick Gower to manufacture the economic sabotage meme as a justification for turning on Labour & the Greens rather than Key’s economic mismanagement.
“So Mighty River Power shares were talked up to $2.80 but they will actually cost $2.50?”
And they still have to float another 13% of shares that went unsold. Note how they didn’t lower the price to say $2.30 (or whatever it works out to) and give the investors more shares to COMPLETE the float ($2.50 still seems an EXTREMELY high valuation based on the fundamentals). So obviously they can’t dump 13% of the total outstanding shares (or over 25% of the floated shares) without crashing the stock price and pissing everyone off – after all, those who wanted shares in Mighty River Power already have them, and will there really be a lot of international demand for this overvalued energy company with a sky high NZ dollar – it looks expensive to me in NZDs, it must be truly horrific in EURs? I suspect the Government will trickle the shares out at a rate the market accepts. Therefore, I can’t see the share price rising appreciably in the short term, and this thing is a turkey for the long-term anyway due to abysmal company fundamentals. I will be watching this story closely…
Will the spy on Bill English now? He obviously sabotaged the market with the float of Might River. Indeed, his inability to understand money and its’ creation in the electronic age is a deliberate and wilful attack on the economy. The GCSB should watch this man closely, as he is little more than a wrecker.
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