IFT - Infratil

[RGR367]

Don't you just love investments that are relatively low risk and give you good returns? Maybe I'm too positive about IFT but in 2013 it was way too undervalued and presented a great medium to longterm opportunity.

HY results (interim dividend has been increased to 5.25 cents per share)
https://nzx.com/companies/IFT/announcements/273179

Yup. Started looking/accumulating it before the "Z"elling story so grab as much as you can now before those 2nd or 3rd lookers like me beat us to the punch

[BlackCross]

MorningStar give it a bit of a puff this morning:

.... There is no change to our fair value estimate of NZD 3.50, and at the current share price of NZD 3.19, the stock is moderately undervalued. We see no change in the company's competitive advantages, with our narrow moat rating underpinned by Trustpower and Wellington Airport. The board declared a fully imputed interim dividend of NZD 0.0525 per share, up from NZD 0.045 last year.

Gearing has fallen significantly following the sale of the company's 20% stake in Z Energy for NZD 480 million. Infratil ended September with a net debt/total capital ratio of 15% and an estimated NZD 1 billion of 'dry powder' ready to potentially invest. We would not be surprised to see Infratil increase its exposure in the retirement and renewable energy spaces rather than infrastructure assets, given the hefty multiples being paid for airports, toll roads and port assets.

[Joshuatree]

One of their few black marks the disastrous foray into airports.Practically gave 2 away ; was it Prestwick and one in Germany?. And are the bus business's profitable now?Sure have done well last few years and thats with morrison &co's hefty management fees taken out( cannot remember the details/ figs ) but hey with deals like ZEL they deserve it. Wish i still held a few, holding ZEL now.

[Zaphod]

One of their few black marks the disastrous foray into airports.Practically gave 2 away ; was it Prestwick and one in Germany?. And are the bus business's profitable now?Sure have done well last few years and thats with morrison &co's hefty management fees taken out( cannot remember the details/ figs ) but hey with deals like ZEL they deserve it. Wish i still held a few, holding ZEL now.

Yes, the airports turned into quite a debacle, but could have offered some real profits had they been successful in turning them around.

Some of the original rationale for purchasing Stagecoach (now NZ Bus) was to enable them to grow the market through the provision of innovative new public transport services. A whole raft of reasons including the PMTA, gross contract v net contract etc. have precluded those ideals from being realised.

While the AKL network continues to grow, the method in which services are directed by AT will likely see relatively slow profit growth in that region. The WLG network is relatively static, so I don't see massive growth occurring there unless NZ Bus win a larger number of tenders. NZ Bus have been tendering for the provision of regional services (all under gross contract arrangements) in Hamilton, New Plymouth, Tauranga, Palmerston North, Napier et al.

[kiora]

Utilico sell down keeping cap on share price
http://stocknessmonster.com/news-ite...=NZSE&N=273695

[Zaphod]

Snapper card faces uncertain future as NZTA pushes to have Auckland's Hop card in Wellington

http://www.stuff.co.nz/business/7463...-in-wellington

Snapper, which is already on more than 300 Wellington and Hutt Valley buses, is expected to be among those bidding to provide the smartcard technology when Greater Wellington Regional Council opens the contract up to tender.

But their chances of success look slim after the New Zealand Transport Agency wrote to the regional council stating its preference that Auckland's system be extended to the capital.

The agency also proposed that its wholly-owned subsidiary company, New Zealand Transport Ticketing Limited, be directly appointed to provide the $50 million Wellington network, as it does in Auckland.

The door was left open for the regional council to chose a different technology provider, but the agency said that company would have to represent better value and less risk than simply bringing the Auckland system south.

It's great to see an open and transparent tender processes where the preference for outcomes are clearly directed by the NZTA prior to tenders being issued. I'm not sure why there even needs to be a tender process in light of the NZTA's comments.

One of the requirements for the Thales based system was that other providers could plug into the back end infrastructure, however this appears to be a moot point.

Other regional councils are also being "encouraged" to adopt the Auckland Hop system, so we will gradually see one uniform system across the country.

[horus1]

The thales system is overseas owned,profits flow out , I betwith little tax paid. The NZTA is stupid and we only get half the story.

[Lewylewylewy]

I contacted IFT to see what percentage of profit snapper brings and was told that it contributes a small loss. So I bought in at $3.08, which I'm happy about

[kiora]

Looks like Infratil missed out on Pacific Hydro,now what?Infrastructure assets values getting too rich again?
http://www.afr.com/street-talk/china...0151216-glon5a

[Hectorplains]

Looks like Infratil missed out on Pacific Hydro,now what?Infrastructure assets values getting too rich again?
http://www.afr.com/street-talk/china...0151216-glon5a

http://home.nzcity.co.nz/news/article.aspx?id=218334

Looks like the focus is still in Australia and on renewable energy. They're hinting at some sort of start up.

Bearing in mind too, Trustpower's proposed split and that they've already put out the need for "large amounts of capital" to grow the wind/ solar half - the unimaginatively monikered "Newco." Some partnership deal in that regard wouldn't be a huge surprise.