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Hawaiian Electric Industries Inc. Message Board

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  • joetong419 joetong419 Jun 12, 2009 6:56 PM Flag

    up big, HE HE

    $20 may come next week, but where to after that?

    HE been on a roll since hitting bottom at 12, but still far off 52-week high of 29.

    One can only speculate why HE spiked down from 21 and why the steady rise since 12. Recession, bank issues. Negative earnings have been discounted...now only if HE can deliver with a rate increase.

    The 6.5% dividend ain't bad when compared to what you get at your bank (< 1/2%).

    An electrical utility stock price movement usually does not move up or down 2%+ each day. Don't expect this to continue for long.

    Good luck to all!

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    • Joetong: You say "the 6.5% dividend ain't (sic) bad when compared to what you get at your bank (<1/2%)." What if your bank was paying out MORE money in interest that it was taking in and was NOT insured by the FDIC? Would you still feel it isn't bad? Same correlation when considering the fact that HE pays out more and/or issues more stock to help cover the divdend payments.

      • 1 Reply to igurumo
      • To Igurumo,

        Focus on the operating cash flow and not the earnings per share - this covers the dividend.

        Add back depreciation of the assets, amortization, etc. and all the other noncash items.

        Another item you overlook: annual dividend of $1.24 has been paid for over 5+ years. Several of those years eps exceeded the dividend, building a surplus in retained earnings. That's why HE did not cut the dividend is my educated guess.

        Maybe I still can't convince you this is not creative accounting. You can wait until HE hits 25 to buy the stock when you get a rosy earning picture. Too late...don't look in the rear view mirror, look ahead.

        Get a CPA to verify if I'm giving you BS. The numbers are what you want to interpret it.

        I'm in to make a 10% - 20% profit and move on. Never buying at the top, buy more shares when near its 52-week low.

        Good luck.

    • Joe,

      Those are all good reasons to speculate why the roller-coaster price of HE, and add in the scare of a dividend cut - But following this board for the past several months, I believe there is but one word to explain this phenomenon..... Igurumo!

      • 2 Replies to Rivierachipman
      • You're not guaranteed to make a profit on every stock purchase - depends on your timing. That includes buying blue chip stocks like MSFT or XOM.

        HE price at <13 earlier this year, buying was a speculation it will bounce back, maybe not to 29. My target is 21 before the end of the year. It can go back to 13-15 on any bad news. However, maintaining the divy was key in this economic environment.

        Very few alternatives to getting 6%+ dividend. Just don't bet your life savings on HE. If you can find another better stock, go buy it.

        Just my 2 cents.

      • It's a scary market. Cash is king. when you can get it.

        To me, I predict the smart money is positioning itself for the next big thing. But you need money to be in position.

        On the other side. Nothing beats a hundred years of dividends at 5-10 percent yeild. This summer should be interesting. JMHO.

 
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32.36+0.14(+0.43%)Apr 24 4:03 PMEDT