LPC

[noodles]

Not as cheap as I indicated yesterday, but still darn cheap even so. Is that better Noodles?

SNOOPY

What with what PT has revealed, I reckon FY15 NPAT should be between 26.5-27.5cps.

They should also able to improve margins with all the capital investment going on. With some increased revenue, they may be able to add another 2cps.

So 30cps per share may be possible.

But the real story is how much of that capital will come back to shareholders(if any). I think this will be the catalyst for share price action.

[percy]

So long as capital is spent where it will generate a return on investment,and where they have customers, they should have plenty of cash to spare.
Hopefully the mad days of building wharfes for the sake of it are well past.
The board is a lot stronger today.
The real catalyst for me would be ChCh City Holdings selling out.

[noodles]

The real catalyst for me would be ChCh City Holdings selling out.

Why? More liquidity? Ability to renegotiate contracts with workers?

[percy]

Why? More liquidity? Ability to renegotiate contracts with workers?

ChCh has again a Labour mayor.
Trade Unions who represent port workers,spoke directly to a previous mayor.This led to ChCh city holdings approaching the chairman of LPC and telling him he had to give in to union demands.!
The Chairman knowing right from wrong resigned, with his reputation in tact.ChCh City Holdings them appointed as Chairman a commercial disaster."Build the wharves and the customers will come."
What is right for ChCh City Holdings is often not right for LPC.Rather than help progress ,they can hinder progress.
A partnership between either POT or POA would most probably have been of benefit.I think better long term planning would have progressed further with a strong partner.

[percy]

Noodles.
I covered this ground in depth from post No.242 [page 17] onwards on this thread.

[Marilyn Munroe]

Container traffic has increased sharply at Timaru since the Tauranga joint venture was launched Source; Timaru Herald

http://www.stuff.co.nz/timaru-herald...tainer-traffic

Boop boop de do
Marilyn

[Snoopy]

Container traffic has increased sharply at Timaru since the Tauranga joint venture was launched Source; Timaru Herald

http://www.stuff.co.nz/timaru-herald...tainer-traffic

Boop boop de do
Marilyn

A quote from the above article, about the involvement of Port of Tauranga at Primeport.

"Before the partnership, Timaru's port had seen container movements drop from 80,000 20-foot container equivalents a year to 20,000 as shipping companies decided to use larger ports, but the partnership with Tauranga has turned this around."

If trade in containers is up 25%, that still only brings Primeport container movements to around 25,000 container per year. Even with this growth Primeport are still down 69% from when LPC pinched the Fronterra trade. Not worth a furrow line on the forehead of Peter Davie yet.

SNOOPY

[percy]

Boop boop de do is exactly right Marilyn.!
Thanks for posting the link.

[percy]

[QUOTE=Snoopy;476064] Not worth a furrow line on the forehead of Peter Davie yet.

Want to bet on that !? lol.

[Snoopy]

ChCh has again a Labour mayor.
Trade Unions who represent port workers,spoke directly to a previous mayor.This led to ChCh city holdings approaching the chairman of LPC and telling him he had to give in to union demands.!

Dunedin has a new council too, that has just reviewed their 15% strategic stake in LPC!

http://www.odt.co.nz/news/business/2...c-shareholding

Quotes from the above article that I thought interesting:

"Port Otago chairman Dave Faulkner briefed the councillors, saying the insurance payout and the subsequent resumption of dividends at 2c per share were ''a little disappointing''."

Not sure why he thought the insurance payout was disappointing! It looks a much cleaner agreement to me than what is happening with the rest of the CCC controlled assets! And there is enough money there to rebuild all damaged assets to the highest earthquake standards.

-------

"Mr Faulkner said there were several maritime issues going on at the time the stake was purchased, including port operator Hutchison's desire to own and manage LPC and the Government talking of ''amalgamations'' of unnecessary port operations."

"''Because of our stake, Hutchison don't have it [LPC]. It is less strategic now; the reasons have changed. We've looked at what else to do with $47 million,'' he said. "

"Following the meeting, Mr Faulkner was asked if consultants had talked to potential buyers."

"''There are a few entities who have expressed an interest,'' Mr Faulkner said."

"Mr Faulkner said ''if the price isn't there'', Port Otago would not sell, while Port Otago chief executive Geoff Plunket said the company was able to maintain its ''long-term `hold' strategy'' and keep the stake."

-------

Will Port Otago sell or not? It seems the issue is not clear cut.

SNOOPY