IFT - Infratil

[macduffy]

But still doubtful whether they can profitably run airports outside NZ.

True.
But as has been posted elsewhere, IFT's investment in overseas airports is a very small part of their portfolio. Doesn't detract from the overall very good result.

[CJ]

True.
But as has been posted elsewhere, IFT's investment in overseas airports is a very small part of their portfolio. Doesn't detract from the overall very good result.

But it has to be a distraction. Given it is such small part, you wonder why they just dont liquidate. It will probably be a long time, if ever, for them to see a gain to warrent the long holding period.

If you go back far enough, Morrison and Co set up a separate company to invest in Australia and overseas (Utilico???) but it flopped. They have now figured out Australia but they should have stayed in this part of the world, not boosted their egos but operation in Europe as well.

[POSSUM THE CAT]

CJ do some research on Duncan Saville. with reference to UTILICO

[Beagle]

But it has to be a distraction. Given it is such small part, you wonder why they just dont liquidate. It will probably be a long time, if ever, for them to see a gain to warrent the long holding period.

If you go back far enough, Morrison and Co set up a separate company to invest in Australia and overseas (Utilico???) but it flopped. They have now figured out Australia but they should have stayed in this part of the world, not boosted their egos but operation in Europe as well.

Morrisons management fees are where the real money is being made, not Infratil. Energy assets are the only ones that have really shone recently, (like that's anything unusual compared to any other energy stock around the world). Just another top heavy investment company paying very high management costs and fees, my 2 cents.

[modandm]

Morrisons management fees are where the real money is being made, not Infratil. Energy assets are the only ones that have really shone recently, (like that's anything unusual compared to any other energy stock around the world). Just another top heavy investment company paying very high management costs and fees, my 2 cents.

totally agree - and thats why although im a shareholder now - i will be looking to exit when the shareprices rises further to better reflect the current good performance and value of the assets. The greenstone acquisition was good - and the sp should get above $2.10 in 12 months.

TBH - with such a large chunk of IFT being TPW - you can just buy TPW if you want the exposure. Personally I don't rate TPW as a good stock - with the listing of Meridian and MRP - CEN and TPW will be sold down imho

[modandm]

Morrisons management fees are where the real money is being made, not Infratil. Energy assets are the only ones that have really shone recently, (like that's anything unusual compared to any other energy stock around the world). Just another top heavy investment company paying very high management costs and fees, my 2 cents.

totally agree longterm but shortterm IFT is undervalued - and thats why although im a shareholder now - i will be looking to exit when the shareprices rises further to better reflect the current good performance and value of the assets. The greenstone acquisition was good - and the sp should get above $2.10 in 12 months.

Goldmans has a valuation of $3.10 and 12 month $2.30 and expects it will be 18-24 months before earnings highlight IFT value.

[Beagle]

totally agree longterm but shortterm IFT is undervalued - and thats why although im a shareholder now - i will be looking to exit when the shareprices rises further to better reflect the current good performance and value of the assets. The greenstone acquisition was good - and the sp should get above $2.10 in 12 months.

Goldmans has a valuation of $3.10 and 12 month $2.30 and expects it will be 18-24 months before earnings highlight IFT value.

Good luck with it. Analysts have theoretical valuations way north of where GPG are but in their case with hopelessly inept, and vastly overpaid "so called" management there's no chace of ever attaining theoretical value or anything even remotely close. Not saying IFT's structure is as absurd as GPG's but with each companies management structure within the portfolio, then Infratils management structure and then Morrison's extraordinary fees...well you get the picture, how could it ever be worth the theoretical sum of the parts ? Then as you quite rightly factor in yesterday's budget announcement and the market looking to absorb massive floats in the energy sector the value of Trustpower does indeed look under pressure going forward.
I am sure Goldman's have a very close investment banking relationship with Infratil, enough said.

[modandm]

I am sure Goldman's have a very close investment banking relationship with Infratil, enough said.

first nz - also $2.30
macq 0 $2.08 12m target 2.45 valuation
db - 12m target 241
ubs - 218 and estimate nav at 250

All research from may - source reuters.

I def think they deserve to trade at 15-20% discount to reflect fees and company structure so around 2.15 I see as fair value. Thats a good 10% upside from here.
A good yield too.

I mean its not going to shoot the lights out but for anyones core portfolio IFT warrants holding at this point.

You would be doing well to find better value after the recent strong performance of many on the NZX. Shares like SKC, SKT, FBU, NPX, all starting to look fairly valued IMHO.

[Beagle]

I think its a real pity they couldn't buy all of Shell's interests, a classic case of aggressive gearing limiting ones opportunites.
I prefer Ryman even at today's closing price.

[buns]

I'm going to dig into IFT a bit more next week as I have a hole in my portfolio for a company like this (stable/defensive yet growth aspirations, good income). I also like their capital structure, and willingness to take on debt/bonds and low rates (very certain CF's allow this).

I like the Shell deal, and think this could give them another leg up with investors. I'm unsure how greenstone is going to run this ship, however I think having local expertise, and low levels of red tape, hierarchies and ability to make decisions quickly compared to the other retail gas outlets should give them a sizeable advantage. Right away, they could secure some key outlets in Chch if they are smart about it. Hopefully sitting within IFT gives this business unit some sort of scale they would have had in the Shell Group.

And for those who get ticked off with the fee's, well IFT being a part of super/Morrison group allowed them access to the Shell assets right? There is no way IFT could have afforded these outright. There are some positives from this relationship.

Thoughts on how these privatised assets will affect IFT? I really have no idea about this, so would like some pointers from people in the know..

More infrastructure investing options mean less IFT investors? Can IFT itself take some ownership of some of these assets? Chances of these companies now being run in a certain way which could affect IFT’s operations/value?