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Too expensive for me now Shasta, sold out last week.
It has good cash backing per share, but in my view that only makes it a good buy in the low $3's as the cash backing per share after they pay tax will be around $2.65. Things like land holdings and the value of their AOE holding usually get discounted a bit and then most coal businesses right now aren't getting valued on a very high multiple. I come up with a sum of parts around $3.40.
Maybe they have a good acquisition lined up but can't see at this stage how that has created around $750m of shareholder value in the past couple of weeks.
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this is the sort of stock im looking for in this market.
nice floor on the shareprice underpinned by cash and assets
good trading range/volatility for some quick trades
if it dipped under 3 dollars, youd be safe in the knowledge that you had some hard assets to back your investment.
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 Originally Posted by mark100
Too expensive for me now Shasta, sold out last week.
It has good cash backing per share, but in my view that only makes it a good buy in the low $3's as the cash backing per share after they pay tax will be around $2.65. Things like land holdings and the value of their AOE holding usually get discounted a bit and then most coal businesses right now aren't getting valued on a very high multiple. I come up with a sum of parts around $3.40.
Maybe they have a good acquisition lined up but can't see at this stage how that has created around $750m of shareholder value in the past couple of weeks.
I keep thinking NHC is solid as, but once they pay out the $725m tax & $600m dividend, it will be harder to sustain it's current $A3b+ market cap.
When you work out what cash they will have left, + its non coal assets, i agree it's coal assets haven't risen > $500m in a week or so!
I'd be happy buying around $3.30
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NHC acquires 13% of CSG play Planet Gas
Another interesting move by NHC. This is their second CSG acquisition, after previously grabbing a sizable slice of Arrow Energy.
In turn, Planet has some interests in a Geothermal play.
http://www.asx.com.au/asx/statistics...idsId=00986324
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Some speculation from brokers (RBS and Ord Minnett) that NHC may announce a special dividend with it results later this month from the proceeds of its AOE sale. They'll get around $440 post tax so if they decided to pay out around $300m of that (they already have $1.4b in the bank) there is a potential 35c FF dividend. I hold few leading up to the results
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Some interesting pics of the flood damage to the rail to Brisbane in the attached report.
http://www.asx.com.au/asx/statistics...idsId=01164047
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Originally Posted by Huang Chung
Alot to like about NHC despite its sheer size, upside is in the QBH expansion, CTL projects etc, & i read they are the 5th largest coal producer on the ASX (source "The Australian", from memory?)
I see around 90% of there production goes overseas now, every quarter this figure seems to increase.
I know from my time @ Kiwirail the lead in times for rail & components from China were quite long, & thats alot of damage to be sorted out
A small gripe, but the quarterly report, presentation to analysts, media release etc all DO NOT show the cash balances, you need to be able to solve the Divinci code to understand the half year report!
How do they get around the reporting of cash balances/omission of cashflow statement for ASX reporting standards?
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Member
Shasta
How do you see the NEC takeover adding to the bottom line!
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Originally Posted by shasta
I know from my time @ Kiwirail the lead in times for rail & components from China were quite long, & thats alot of damage to be sorted out
Don't think the parts should be a problem, as the concrete sleepers and rail are made in Oz. QR usually had stashes of spare sleepers, rail and ballast around the place. Wonder if such 'luxuries' will be allowed with private ownership of the freight services?
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