Napier Port IPO

[peat]

until a proven record with increased capacity goes well who knows

yeh its all about the management deserving what is a pretty high multiple

[EighthWonder]

I’m from a property background and being able to invest in the IPO today taught me a few things. Shares are a lot more fun!
I was getting my information from the NZX website and from yahoo finance eventually but found ASB Securities the best through the depth tab.
I am very surprised in the lack of financial education in New Zealand, when I mention IPO most peoples eyes glaze over. There is next to no coverage on the news and although these shares were popular New Zealand has so much potential if people invest more in the share market long term instead of those bank term deposits. Just some food for thought, well done to all those who were in today and all the best for holding for the years to come.

[Airw0lf]

I’m from a property background and being able to invest in the IPO today taught me a few things. Shares are a lot more fun!
I was getting my information from the NZX website and from yahoo finance eventually but found ASB Securities the best through the depth tab.
I am very surprised in the lack of financial education in New Zealand, when I mention IPO most peoples eyes glaze over. There is next to no coverage on the news and although these shares were popular New Zealand has so much potential if people invest more in the share market long term instead of those bank term deposits. Just some food for thought, well done to all those who were in today and all the best for holding for the years to come.

One of the issues for a start is the tax advantages to investing in rental properties and the perception that housing is "safe," especially among those who hear horror stories of the 1987 crash, etc. I am a firm believer in our taxation settings favouring property investment being a major deterrent to investment in the share market. This in turn robs growing companies of capital and our economy is poorer for it. Yes, some of the very good firms can go overseas for funding/to list publicly but this is not ideal either as the fundraising costs for the firm will be higher and the shareholders benefitting from the company's success are likely to be non-NZers.

[NZSilver]

Can you explain the tax advantages?

[Cynic]

Can you explain the tax advantages?

It's part - tax, part gearing. Our bank environment means you can comfortably gear property investments at 60%+ (at very attractive rates relative to other borrowing), and then our tax law means you can offset these interest costs against rental income, which results in minimal if any tax on income (as opposed to company dividends which are taxed at your personal rate)

So while property is inhererently less productive, and has ungeared expected returns of say 6% (2-4% net rental yield after all operational costs, +2-4% capital growth), and shares are more like 8%, after gearing and paying less tax on income you can end up better off

[EighthWonder]

Can you explain the tax advantages?

Would most likely lie with being able to claim back on the leverage. Not so sure you could do this as effectively with margin loans but the risk outweighs the tax advantages.

[Lewylewylewy]

Except for ipo's, the stock market is a second hand market. The companies get nothing for these shares price or trades. Ipo's I've seen seem to get filled with current demand levels. Also, people just chucking their money in the bank or deposits on mortgages enable banks to invest in the stock market. So, aside from people not getting the gains they should from their bank and kiwisaver accounts, I don't think it's too damaging for the economy

[percy]

NPH is trading at $3.08 at present,up 18.46% on its issue price of $2.60.....

[macduffy]

A bi off track there. Lewy. For a start, banks don't invest in the stockmarket, their wealth management or Kiwisaver subsidiaries do, on investors' behalf; their nominee subsidiaries might, on customers' behalf.

[Ggcc]

NPH is trading at $3.08 at present,up 18.46% on its issue price of $2.60.....

It has been said before that I feel that NPH is now overpriced for the short term. Great for holders!! I hope to get on board at $2.90 or lower which I do believe it will go in a couple of months.