IFT - Infratil

[777]

HLZ has the advantage of proximity and the ability to improving infrastructure at much lower cost. There are some weather related issues such as fog, but modern ILS systems present on larger aircraft (e.g. CAT IIIB, CAT IIIC) would render this mostly a non issue.

I suspect given HLZ's lacklustre passenger numbers (they are now the 10th busiest well behind NPL at 9th), they will be looking at both this option and becoming a freight hub. It will however IMO be a difficult sell to carriers.

The cost to upgrade to Cat3b is not insignificant with all the approach lighting and additional runway lighting required. There is only the one runway in NZ that is up to this standard and that is in Auckland. Hamilton doesn't even have a parallel taxiway to exit onto. Where would you park more than three or more wide bodies?

[Zaphod]

The cost to upgrade to Cat3b is not insignificant with all the approach lighting and additional runway lighting required. There is only the one runway in NZ that is up to this standard and that is in Auckland. Hamilton doesn't even have a parallel taxiway to exit onto. Where would you park more than three or more wide bodies?

I'm definitely not arguing that significant investment wouldn't be required, you're absolutely right about that. It would be significant.

Hamilton do however have a vision around becoming an air-freight hub, and there are definitely some significant advantages to the location. If the planned infrastructure build can also accommodate diversions from AKL, then that might improve the economics further.

Apparently, according to some colleagues, talks with potential carriers are still on-going.

[Hectorplains]

Sounds like they should have used Snapper Services

Snapper's turn in the gun now: https://www.stuff.co.nz/national/974...es-with-topups.

Why is IFT persevering with this investment?

[value_investor]

Cheeky increase in the earnings guidance today, a pleasant surprise. This stock is probably one of the only defensive stocks on the nzx50 that offers such diversification. Would be interesting to see if this is coming from the new business units or some of the older ones.

[winner69]

Cheeky increase in the earnings guidance today, a pleasant surprise. This stock is probably one of the only defensive stocks on the nzx50 that offers such diversification. Would be interesting to see if this is coming from the new business units or some of the older ones.

Seems IFT increased guidance because of Transpower increasing their guidance.

[artemis]

Seems IFT increased guidance because of Transpower increasing their guidance.

Looks like it, though that would be Trustpower.

[huxley]

Well we’ll well, IFT is back where it was trading this time last year..

[value_investor]

Interesting results announcement today, at first glance it looks quite stellar but when you dig deeper you realise there is a alot more to be desired.

Trustpower is the real gem at the moment, pulling the horse forward but as they have said before, a lot of the other investments are more long term plays than short term. I think the long term plays may be more long term than they have led on, and I am completely fine with it for now for the price I got in at.

Still think the SP is very overvalued to top myself up, the risk factor is still quite large with some of these industries not hitting full maturity yet, these are tough as their isn't a lot of past experience to gauge future performance abilities (tilt especially but CDC as well). However, there is a lot of capital still to be allocated, over 670m of cash and bank facilities to exhaust. At this price, you really have to trust the capital allocation abilities of the company.

[kiora]

Interesting results announcement today, at first glance it looks quite stellar but when you dig deeper you realise there is a alot more to be desired.

Trustpower is the real gem at the moment, pulling the horse forward but as they have said before, a lot of the other investments are more long term plays than short term. I think the long term plays may be more long term than they have led on, and I am completely fine with it for now for the price I got in at.

Still think the SP is very overvalued to top myself up, the risk factor is still quite large with some of these industries not hitting full maturity yet, these are tough as their isn't a lot of past experience to gauge future performance abilities (tilt especially but CDC as well). However, there is a lot of capital still to be allocated, over 670m of cash and bank facilities to exhaust. At this price, you really have to trust the capital allocation abilities of the company.

'At this price, you really have to trust the capital allocation abilities of the company'
You either do or you don't.I do,long term hold for me for yield & long term capital appreciation,increasing dividend every year by investing in long terminfrastructure investments.These aren't some quick fire whimsy projects.Yes they occasionally get it wrong like NZ bus etc but they know if its not working know how to limit its downside.Company looking for around 17-20 % ROI over long term.I trust their allocation of capital to achieve this.
Overvalued?Really,I don't think so.Think return on Metlifecare,Z.They are not one trick pony's but in for the long haul.
'Overview: How does an 18.4 per cent a year after tax compound return sound?

Most would be pretty pleased to achieve that on any given year, however early Infratil investors have enjoyed this compounded annual return over the company's 21 year existence.

This makes Infratil the best performer on the NZX over this period.'

http://www.stuff.co.nz/business/mone...-View-Infratil

[hardt]

Interesting results announcement today, at first glance it looks quite stellar but when you dig deeper you realise there is a alot more to be desired.

Trustpower is the real gem at the moment, pulling the horse forward but as they have said before, a lot of the other investments are more long term plays than short term. I think the long term plays may be more long term than they have led on, and I am completely fine with it for now for the price I got in at.

Still think the SP is very overvalued to top myself up, the risk factor is still quite large with some of these industries not hitting full maturity yet, these are tough as their isn't a lot of past experience to gauge future performance abilities (tilt especially but CDC as well). However, there is a lot of capital still to be allocated, over 670m of cash and bank facilities to exhaust. At this price, you really have to trust the capital allocation abilities of the company.

A behemoth of a renewable energy pipeline behind Tilt... market will reward it when the time comes in 2018 > 2019

Would not consider IFT to be overvalued in the slightest... what makes you say that?

I hold both TLT and IFT.