If you invested in Mighty River, you’ve lost 13% of your money so far. That’s hardly the ‘licence to print money’ that ‘mum and dad’ though they were getting (a belief that the government did little to discourage).
The word is the current plunge is prices is institutions selling off in order to force the Meridian listing price lower and Mighty River has a long way to fall yet. But the lower it goes, the less likely ordinary people will be to risk their savings on another privatised power company.
The only people who will win from this are the institutional investors, and all the middle-men clipping the ticket for tens of millions along the way.
lprent: I thought that the following graph might be instructive for mythic potential “kiwi mom & dad” investors. It almost defines a dog stock being milked by brokers and helping to drag the NZX down… You have to admire the way that how much this asset can fall against a relatively stable market.