IFT - Infratil

[QOH]

I think Infratil has lost its direction since Lloyd Morrison died.

[macduffy]

I think Infratil has lost its direction since Lloyd Morrison died.

There were a few dud investments in LM's time too. The European airports, sold for a dollar, eventually. NZ Bus hasn't exactly been a great money-spinner either.

Infrastructure investments need time to prove their worth, or otherwise. Let's give the Canberra data centre, retirement villages and Aust student accommodation a few years.

[peat]

I think Infratil has lost its direction since Lloyd Morrison died.

Morrison might have been involved with the beginnings of Infratil and Z, but he certainly wasnt around during the time they siphoned that gas tank dry.

[RTM]

I think Infratil has lost its direction since Lloyd Morrison died.

You may well be right.
A similar thought occurs to me with respect to Briscoes, what happens when their leader decides to retire ?
Apple and SJ.
Warehouse and ST.
These founding members with the drive and vision in their specialist areas are hard, maybe impossible to replace.

[Zaphod]

There were a few dud investments in LM's time too. The European airports, sold for a dollar, eventually. NZ Bus hasn't exactly been a great money-spinner either.

Infrastructure investments need time to prove their worth, or otherwise. Let's give the Canberra data centre, retirement villages and Aust student accommodation a few years.

In terms of NZBus, Labour's implementation of the PMTA and National's minor changes to form the PTOM eroded many aspects of the business model that NZBus believe would have allowed them to innovate and raise profit levels.

Instead we now have a situation where regional transport authorities (e.g. AT and GWRC) dictate the route, frequency, fares, capacity, and even livery of buses, and with many services now operated on gross contract rather than net contract method there is very little room for innovation or profit growth.

We have also seen the NZTA implement a relatively antiquated fare payment system onto Auckland's public transport network. IFT had hoped that it's own more flexible Snapper payment service would have been implemented, but that is now just a pipe dream. At least the NZTA have dropped the mandate for all regional transport authorities to use the Thales-based Auckland system, however opportunities for Infratil are becoming thin.

Couple this with Iwi-owned GoBus whose tax rate provides them with a significant fiscal advantage over any other privately-owned operator tendering for contracts, and you have a highly competitive market where current or even future prospect of increased profitability is scarce.

[hamish]

IMO the Infratil Board and Execs are very good. Marko B is an excellent and shrewd operator who is an investment accountant / CFO at heart - he really 'gets' benefits and value. Morrison's as an entitiy plays a valuable quasi outside-in role in their investment strategy - many Orgs could use this model. I like their value proposition play(s) into social infrastructure. NZ is growing. hence, more people need more education, transportation, utilities. The Canberra Data Centre is an interesting play, I like how they may be able to get into social data and insights - can see this definitely happening in future. I also like that they are willing to actually research, invest, commit - I work with alot of business Orgs, where talk is in over-abundance, execution on strategy is low. Even the WLG runway extension, if it doesn't play out commercially viable, then they took a good look.

[artemis]

IFT's segue into electric buses, and perhaps later on other EVs could work well. Their supplier company in the US - Wrightspeed, run by a Kiwi - supplies a lot of EV garbage trucks for example.

[huxley]

Looks like Trustpower will loose it's point of difference with Slingshot moving to offer power&Gas

http://i.stuff.co.nz/business/indust...a-similar-move

[BlackPeter]

Sharemarket is certainly not rewarding the demerger between TrustPower and TILT. Both together are now worth $6.23 ($1.89 -TLT + $4.34 - TPW), a far cry from the $7.65 a TPW share was still worth in October (i.e. prior to the demerger).

Both shares are slipping - and even if IFT seems to have currently a rest, I think as soon as they start moving again the chances are it will be downwards.

Discl: not holding any of above. DYOR;

[Zaphod]

Looks like Trustpower will loose it's point of difference with Slingshot moving to offer power&Gas

http://i.stuff.co.nz/business/indust...a-similar-move

IMO there are already too many electricity & gas retailers for the market size and thus I think that some consolidation will be inevitable.