quote:Originally posted by CJ

quote:Originally posted by rmbbrave All of these investment add up to $1.47 billion but IFT's market cap is $822 million.

Is it fair to say IFT's SP is about half what it should be?
They hold a bit of debt remember. Not sure how much but a look at the last statutory aco****s should tell you. There new investments have also been debt funded so what ever debt taht had at the last stats has now increased.

Interesting this as IFT is essentually double levered. Take TPW, one of its main investments. It has say 50% equity, 50% debt. IFT then buys that for 50:50 equity debt. That means there investment in the assets of TPW have 25% equity, 75% debt. So as long as it keeps picking winners, this explains why it has had a good return. Just like increasing your leverage in your house in a rising market.
Triple leverage if you buy the warrnats.
Forbar calculates NAV at $4.36, so nice discount considering it's one of the best managed and performing companies on the NZX.