IFT - Infratil

[Toddy]

Cheers Phaedrus

Yes, very boring looking at an uptrending chart unless ofcourse you are heavily invested.
After a quiet period over recent months everything is pointing towards a new trading range for IFT. And the premium on the warrants has come right back over the past 6 months making them exceptional value at these levels.

[shasta]

B Warrants, definitely B Warrants!

Toddy, IFT along with GPG appear to be the steady but not spectacular performers with enough overseas exposure to counteract any down turn in the NZ economy.

I sold out of the heads a wee while back but hold the warrants and see these as a long term hold.

Nice graph though & suggests heads >$4 & warrants back towards $1 in the near future.

My only question with IFT is there stake in APX, i dont get that "play".

Is this an isolated short term play by IFT?

[Toddy]

The APX play. A question that can only be answered in the future.

Same Chairman.
Maybe Cardiff is the real thing.

No one is sure, there were better options out there for IFT if they wanted exposure to oil and gas.

Based on todays market I would no put my money on IFT exercising its options to buy more APX at $5 per share. If they end up exercising then I will eat my hat.

[CJ]

my only concern with the warrents is yhe effect of dividends. if they increase the pay out rate (which they could with increased IC coming from stagecoach) the value of the warrent is effected.

what if they pay a special div etc.

[k1w1]

CJ have a look at IFTIZA if you are concerned about dividends. Exercise price of the warrants is $2 and they reset in Sept 06 as I recall.

Disc: Hold IFT, IFTWB and IFTIZA

[Dough Boy]

quote:Originally posted by k1w1

CJ have a look at IFTIZA if you are concerned about dividends. Exercise price of the warrants is $2 and they reset in Sept 06 as I recall.

Disc: Hold IFT, IFTWB and IFTIZA

If they reset in Sept 06, too short time frame => too much risk

[kura]

CJ, IFT's stated policy is to pay out div to the extent of available Imputation credits, and yes, stagecoach purchase may lead to higher dividends, ( & have negative implications to warrant holders) but have you ever thought of the implications of share buy back on warrant holders ?? This would surely benefit warrants, and offset the dividend payment to some extent.

There are probably formulas/calculators out there to put a dollar value on the impact of paying a divi & having buyback, on an option/warrant, but calculations are too much for my fragile brain to comprehend at moment. However IFT have seemed to have done both historicaly & I never heard anyone complaining of unfair treatment of heads v warrants.

[CJ]

Agree that buy back is beneficial for warrent holders.

I think no one has complained in past because ther ehas been no major shift. If IFT doubled its div payout following stagecoach, then it could become an issue.

The good thing about the wellington airport investment is that IFT ar being pricks and withholding all dividends since 1/3 would go to the local council.

[shasta]

My preference for investment companies like IFT & GPG is to reinvest cashflow into acquiring more profitable businesses cheaply & increasing the EPS & therefore SP, not the dividend pay out.

For that reason alone a buyback is a better option, as company that pays out too much in dividends is saying that its management cannot find a better use for it!

IFT also has a good chunk of debt & a whole host of bonds which also would be better off being reduced than paying out a dividend.

Why pay interest on debt, whilst returning more cash as dividends is beyond me!

CJ - I personally would like to see IFT buyout the Wellington Council's stake in the Wellington Airport

[k1w1]

There is an increased prospect of dividends due to the Stagecoach purchase, especially as it may lead to other bus company purchases.

Increased dividends will benefit IFTIZA holders but not IFTWB holders. Doughboy the reset date in Sept 06 is an option to purchase but these are rolling warrants that reset for a further period based on a new price which includes an interest component. So you can roll them over if you choose to.

Just another way to diversify exposure to IFT.