Some Dilma Rouseffian bureaucrat in the Office of Wishful Thinking in New Zealand gave everyone who watches cable on copper wires an early Christmas present by cutting their cable bills in half. Cool huh? Except that the NZ government also wanted Chorus to build out the fiber network. Gotta have money to do that, but the Office of Wishful Thinking figured that Chorus could do both a)provide cable for less than cost, and b) build out an ultra fast fiber optic network without any cash flow.
So, given the clearly untenable situation, Chorus Ltd stock has reflected the current Catch-22 by losing 60% of its value. To Chorus' credit, they have begun to fight back. Unfortunately, the politicians in NZ are just like the politicians in the US, gutless wonders afraid they won't get reelected if they do the right thing.
So again, here we are, with one guy in the Cable Rate Department responsible for an astounding loss of value in a corporation that was just doing what the government wanted it to do.
Read about what Brazil has done to PBR and VALE, and what Venezuela has done to virtually every company that has ever done business there, and you'll understand why socialists probably shouldn't be allowed to control businesses. I guess it's not really just socialists, as the Islamic fundamentalists in Iran are selling gas to their citizens at vastly lower prices than it costs, just to keep themselves in power.
I'm happy to buy more as the price goes lower, mostly because I think there's a bottom in sight, but I could be wrong. Maybe New Zealand will nationalize Chorus, force out of work Chatham Islanders to dig fiber optic ditches for free, and provide world beating fiber optic internet speeds for almost free! I mean, you never know.
It's the same brand of interferism that the Brazilians practice on Vale and Petrobras. Take a look at what Chorus was supposed to do...build out a fiber network, which takes capital. So what does the NZ government do? It hosed Chorus by cutting the cable bill of every Kiwi in half. It reveals the shortcomings of the #$%$ in the statehouse in New Zealand, not the boardroom.
The more I think about it, the more it seems like homeopathy. "Yes, we will build buoys that will provide power. And, even if those buoys sink and disappear off the Oregon coast, they will still produce power."
Or snake oil, or whatever...just show me the results. And don't take my word for it, just check the Oregonian for articles on Ocean Power and Reedsport and/or Gardiner.
At this very moment they're trying to figure out why their test buoy got toasted...but they don't know. What does that say about the prospects?