IFT - Infratil

[POSSUM THE CAT]

Lissica yes Buyer Beware & that includes the buyer of shares. Some agreements include a guarantee of performance others require extra payments if business performs better than expected. What is in the Shell agreement we will have to wait and see but I have little faith in Infratils Management. After some of there dealings Stagecoach & Auckland Airport being two.

[Toddy]

Good value for money.

Shell and Infratil have finally signed on the dotted line for the $696.5 million sale of the oil company’s New Zealand distribution and retail business, including its petrol stations and a share in the Marsden Point Refinery.

[CJ]

Good value for money.

How do you know? Do we know what the earnings are for the assets acquired.

THey are also signalling alot of capital spend. Rebranding will need to be done at some point and they have indicated they why to get into high mark up items so new car washes, more food etc.

[GTM 3442]

From the NZ Herald:

"They say say that dividends from the business will now mainly flow to New Zealand shareholders - and the public, via the investment by the Super Fund. It says there will also be more local jobs and staff training through the "on-shoring" of many roles now being performed overseas.

"This is a New Zealand company taking hold and control of an asset that has been controlled offshore for some time," Infratil chief executive Marko Bogoievski said."

Um, sounds like a whacking great increase in costs to me.

[POSSUM THE CAT]

My Thoughts: Dog buys Dog

[Toddy]

My Thoughts: Dog buys Dog

Still more productive than a fat cat lying around doing nothing except whining.

[POSSUM THE CAT]

Toddy fat cat making money by staying away from dogs. Burnt once by this management never again.

[Toddy]

Toddy fat cat making money by staying away from dogs. Burnt once by this management never again.

Possum

Fair comment. They owe me a lifetime of savings.

The Shell assets are very much real and do not require the fancy derivatives that IFT management thought they were good at. As soon as they took away the quarterly reporting the market was very much in the dark over the mark to market value of the Aussie energy derivatives.

However, I do think that the management have learnt (like everyone else during the crises) to stick to the basics. And that is what they are essentially doing, buying assets close to home that they can manage hands on when required.

[whatsup]

IFT payed 4 x's earnings, what a gift, plenty of upside here once IFT works their magic !!!

[CJ]

IFT payed 4 x's earnings, what a gift, plenty of upside here once IFT works their magic !!!

A PE of 4. that is a good buy even if it is a non growth industry.

However, I coulnd't see any management fees in the stats at the companies office so hopefully they factored this in since they are going to bring all these extra jobs onshore.

Edit: only up three cents so far though so either market knew or they dont think think it is a good deal.