IFT - Infratil

[winner69]

Chart from mid-December looks healthy - could even say an uptrend

[huxley]

Chart from mid-December looks healthy - could even say an uptrend

Can't complain..

[stevevai1983]

Nothing fancy in IFT's portfolio.
Lots of "bond like" investments and few lackluster investments. I think only the data center has some good growth prospect.
However market is already priced in these considerations, that's why it's trading at a discount to its NTA. so I am not too worry about it.

[artemis]

From all accounts, NZBus are currently getting hammered in the Auckland PTOM tenders - they have lost the South and the East with North, West and Central still to go. I've heard they are not the current front running on a lot of their existing central runs. They are already starting to sell down buses as the potentially wont need as many and what they do have are probably too small (AT are requiring 3 axle or DoubleD's on most routes).

In South Auckland they lost to GoBus, which does not pay tax on profits as wholly owned by two iwi charitable trusts. That tax issue won't help their pricing.

Meantime NZBus has begun converting Wellington trolley buses to EV, and has said that diesel buses will be on the way out in the next few years. So suggest take a medium term view, which looks positive IMO.

[Harvey Specter]

In South Auckland they lost to GoBus, which does not pay tax on profits as wholly owned by two iwi charitable trusts. That tax issue won't help their pricing.

That may well be true but they are still the competition. They are not the only operator they are losing out to though. Ritchies which is a privately owned NZ company also won 1/2 of South Auckland.

Meantime NZBus has begun converting Wellington trolley buses to EV, and has said that diesel buses will be on the way out in the next few years. So suggest take a medium term view, which looks positive IMO.

First mover advantage doesn't always work. While the WrightSpeed Tech does look good and is proven in Rubbish trucks, the fact is they are still refurbing old buses. If the EV become a requirement to win a tender, there is nothing stopping GoBus or the other operators from purchasing brand new EV buses. I am not saying it is a bad move, just that it is not a game changer and can be easily replicated.

[huxley]

Nothing fancy in IFT's portfolio.
Lots of "bond like" investments and few lackluster investments. I think only the data center has some good growth prospect.
However market is already priced in these considerations, that's why it's trading at a discount to its NTA. so I am not too worry about it.

Fair comment. I look at the recent share price as an attractive entry point for a "buy and hold" position. They're basically a strong collection of defensive assets with good management- Im fan of their overall model ie cash generating assets supporting their growth assets.

[BlackPeter]

Fair comment. I look at the recent share price as an attractive entry point for a "buy and hold" position. They're basically a strong collection of defensive assets with good management- Im fan of their overall model ie cash generating assets supporting their growth assets.

Well, yes ... however - remember this "good management" comes at a high price. Until recently in IFT's history they did earn their keep more often than not (though there have been times before where it was more sensible to hold IFT bonds instead of shares), but are they now? If you think that MET, TPW and TLT are on a winning streak you can buy them yourself without giving IFT management their cut from the bond-like returns.

Sure - you can't buy directly into NZ Bus (I wouldn't want them anyway), you can't buy into Wellington airport (but if you like airports, AIA is probably anyway the better alternative), you can't buy into Retirement Australia (but there are lots of comparable retirement operators you can buy into (e.g. INA:ASX).

Note - this is not a recommendation to buy any of the mentioned shares. Discl: hold INA and some IFT bonds;

[JeremyALD]

Well it's in a clear uptrend rising to $2.88 today. I think fair value is around $3.10, let's see.

[BlackPeter]

Well it's in a clear uptrend rising to $2.88 today. I think fair value is around $3.10, let's see.

Just remember - an incoming tide lifts all boats. Just when the tide goes out again you can see who is swimming naked

[peat]

Just remember - an incoming tide lifts all boats. Just when the tide goes out again you can see who is swimming naked

Thats an extreme comment to make for Infratil Black Peter .
Infratil is a very solid company - it may have some ​gearing but this has been reducing over the last few years, your comment is in my opinion not at all applicable.