Ports of Tauranga

[kiora]

He makes me squirm.
Its it the amount of logs that is limiting or the price NZ producers can buy them for that's the issue
Why not just cut down more of the wall of wood!

Yea no Shane,what does he know???
https://www.scoop.co.nz/stories/BU20...y+9+April+2020

[Ricky-bobby]

Was talking to my neighbour yesterday and he was saying log prices are soaring to new records as China wants logs again! They can’t source timber from Europe, so Nz is a good spot. This might explain the move of the Pot upwards lately?..

[850man]

Not a lot of shipping of anything over the last 4 weeks and not a lot of logging either. No cruise ships either. I'm surprised the SP is what it is now considering the downturn

[Zaphod]

Not a lot of shipping of anything over the last 4 weeks and not a lot of logging either. No cruise ships either. I'm surprised the SP is what it is now considering the downturn

IMO we'll see some adjustments to SP's across the board once reality bites in Q3 & Q4 2020. Reporting season will not be pretty.

[Lewylewylewy]

Hi guys, thought id do a bit of a pot review, but i need some help. Even if i assume that theres no damage from covid19, i cant see any way to justify the current share price. The dividend return looks like an increasing trap as npat is flat. Am I reading those reports wrong? Appreciate any help. Ta

[peat]

Hi guys, thought id do a bit of a pot review, but i need some help. Even if i assume that theres no damage from covid19, i cant see any way to justify the current share price. The dividend return looks like an increasing trap as npat is flat. Am I reading those reports wrong? Appreciate any help. Ta

After reading your post Lewy I had a re-scan through the latest Craigs quarterly newsletter which has an article on POT entitled Safe Harbour and re-iterating their view as a core holding. I may have already posted such.
However I looked for financial analysis of the company and was surprised to see none at all in this 10 page article despite their being numerous charts and graphs. So I think this confirms that valuations based on fundamentals are for this company are somewhat irrelevant (to many).

However they support their case with a lot of good points so I recommend you find the article somehow. I will very quickly summarise some main points here - but I wont cut and paste the charts sorry.

• exceptionally strong track record of growing earnings and dividends
• consistently found innovative new ways of developing its strategy and keeping well ahead of its rivals
• import/export volume twice more than its nearest rival (Whangarei)
• Ports are all about networks - The Port of Tauranga network spans the North and South Islands, and importantly, these locations have the capacity for further growth as required.
• targeted shift towards a hub port strategy - transhipment (containers are transferred from one service to another) now makes up 32.1% of the containers handled
  
  • - significant investment in the infrastructure required to facilitate visits by larger international ships
  • developing long term relationships to ensure there is sufficient freight volume coming into Tauranga to justify the big ship services.
  
  
• ​Cargo volumes increased, with minimal impact on truck movement (benefits of transhipment)
• access to rail
• Strategic land holdings
  
  • Port of Tauranga owns 190 hectares of land on both sides of Tauranga Harbour,
  • bout 40 hectares still available for development.
  • The Port believes container throughput could more than double in the coming years through land reconfi guration, stacking cranes and other technology.
  • the Port owns and operates inland freight hubs in Auckland (33 hectares) and Christchurch (15 hectares at Rolleston)
  • 126 hectares at the Rangiuru Business Park near Te Puke, approximately 35 kilometres southeast of the Port.
  
  
• quality infrastructure assets, it would be diff cult to replicate a similar sized port in another part of New Zealand.
• a capable management team
• , competitive advantages,
• clear pathway for future growth,
• sound financials

I hope this helps

[forest]

Hi guys, thought id do a bit of a pot review, but i need some help. Even if i assume that theres no damage from covid19, i cant see any way to justify the current share price. The dividend return looks like an increasing trap as npat is flat. Am I reading those reports wrong? Appreciate any help. Ta

I see it as you see it Lewy. Very hard to justify the current share price of nearly $7.00.
Looks to me a case of a good company but likely not so good investment at todays share price.

The financials are ok, but not outstanding in my view.
Best to invest in something with more likely upside. Keep a searching.

[Lewylewylewy]

Hmmm very interesting. Might sell what few i have sometime. Thanks all

[Nasi Goreng]

Risk of dividend cut being factored in should be considered. POT is a solid investment for all of the reasons discussed over time, however it is not as solid as it was in 2019. I never like to see companies borrowing to pay dividends and POT have been doing this for the last 3.5 years.

[Filthy]

so imports down 25% https://www.interest.co.nz/news/1056...ed-our-deficit
no cruise ship revenue (wont be for some time). car yards importing less vehicles. and we are staring down the barrel of a recession.
absolutely crazy PE. and a (at risk) divi that is really no better than a bank TD.
what am I missing??