CHI - Channel Infrastructure Ltd (NZR)

[cdonald]

Nice Award. I am pretty sure we will get a nice announcement this afternoon celebrating the success' of the new project along with the Deloittes award. Extra thru put for December and a strong margin. Oil coys now getting a significant discount on their products coming out of the refinery due to the CAP. Great that the NZD is sitting around 65 rather than 95. This will be a record year for income/profit

[Beagle]

Well it did start the year at the $2.15 mark so it has had a good rise this year.

However Rog has just bought in about this level so he sees more upside - it will be a good final dividend I think ( I would say at least 10cps ) and the interim of 5cps was unexpected.

A lot of the overseas refineries own the oil they process - the volatility ( $40 to $50 to $40 again) plays havoc with their inventory valuations and it seems they try to increase their margins to compensate.

i have been holding all year and am not tempted to sell yet - don't think I would buy at current levels though...

hope this helps

Happy to play the oil and currency lower for longer because I really believe the story and can't play it ALL through AIR. New project should boost shareholder returns and this stock adds some much needed diversification to my portfolio.
Should have been on board ages ago but better late than never...

[sb9]

Nice Award. I am pretty sure we will get a nice announcement this afternoon celebrating the success' of the new project along with the Deloittes award. Extra thru put for December and a strong margin. Oil coys now getting a significant discount on their products coming out of the refinery due to the CAP. Great that the NZD is sitting around 65 rather than 95. This will be a record year for income/profit

I think so too, the new plant commissioning should be out soon, just matter of today or Monday.

[Crackity]

I'm going to stick my neck out and predict we hit $4 before Christmas

[BlackPeter]

I'm going to stick my neck out and predict we hit $4 before Christmas

and you might well be correct ... I don't think I would bet against this prediction.

More interesting question is - how much higher might it go if the current good conditions prevail for some time to come? Currently on a PE of 8.3 - and hey, it is a cyclical business, i.e. a PE of 10 during good times might be all it is worth. This would bring them up to $4.60 ... and if we allow for the improvements with their new plant, they might next year go well somewhere between up to $5,-- and $6,-- . Not sure, whether I would see much more growth potential, but obviously you never know - and obviously it will be a nice dividend stock until oil price and NZ$ (or both) go up again.

Or is there anything else I should consider?

As always - DYOR ...

[Beagle]

Sums it up pretty nicely BP, thanks YDOR.

[golden city]

big volume going today

[Crackity]

big volume going today

all between 4.30 and 5pm too - 2 million in that half hour.....

[Beagle]

MSCI index rebalancing...twice a year, today was one of them.

[Crackity]

MSCI index rebalancing...twice a year, today was one of them.

Aahh - penny drops....