I bought in before Christmas at $2.12, and so I'm also losing money at this stage. But I looked back at the reasons I invested in the first place: 1. A growing market share; 2. Developing new businesses; 3. Management with a lot of relevant experience; 4. Growing profits and dividends.
Okay, so the deals around Macquarie generation have tended to dominate the headlines, and the Metgasco investment could have performed better. But these are not core parts of the business at this stage, and there still may be opportunities to pick up baseload generators in Queensland after the next election.
I see ERM Power as a company with the potential to be like an iiNet or TPG in the Telco industry and haven't given up on them. Even the big 'gentailers' like Origin, AGL and Energy Australia have had significant share price dips in the past, but have been rewarding for those who hung on to their shares.
EPW Price at posting:
$1.85 Sentiment: LT Buy Disclosure: Held
