CHI - Channel Infrastructure Ltd (NZR)

[Dr_Who]

It has breached the support level of $5.50.

Anyone get a valuation on NZR?

[macduffy]

a buying opportunity Mac.

a monopoly infrastructure asset, with minimal debt, very tight share register, potential corporate activity, improving economic outlook, which would never get consent to be built in this country again.

That's pretty much why I have a small holding.

But the counter argument is that the oil coy's don't really have any reason to look after the minority public holders; some of them - at least Shell - want to quit the activity; it's a one asset investment. So I won't be selling but not tempted to add.
It's really quite a small holding for me which I have largely for sentimental reasons - the very worst reason for investing - but I worked on the original float, in a very junior capacity, back in the early 60's. Nevertheless, it's been an excellent income stock for most of its history.

[sharer]

... Nevertheless, it's been an excellent income stock for most of its history.

That has been my own reason for holding for some time; but now we have no interim divvy & a bit of a shock. How serious is the possibility of zero div for the full year?

[lakedaemonian]

NZR is the only NZ share I hold...and have held it for a LONG time(relatively speaking).

I'm thinking along the same lines as moimoi and macduffy.

I wonder what Shell does from here?

Possible risk of it drifting lower with that question mark maybe.

But I think it's looking more and more attractive.

[moimoi]

They are not paying a dividend so as to put cash into the expansion...on that basis i am more than happy that they don't pay a divi.

[foodee]

Exxon Mobil might have other reasons for a change in emphasis, have a look at this link on $600m to be invested in biofuel from algae.

http://www.thenational.ae/apps/pbcs....707159964/1050

I think there's a lot of merit in this approach. Algae needs light, warmth, CO2 and not much else, and it grows fast. (Perfect for hanging off the back end of power stations). A little bit messy on the extraction side, but it sure beats waiting millions of years for more oil.

-elZorro-

eZ
If you are interested in this renewable biofuel have a look
at Aquaflow from Malbourough NZ. Google will get you there.

cheers

[scamper]

nearly 25% down in three days. seems a bit of an over-reaction to the loss of an interim dividend.
are there other reasons to bail out? Cheers.

[macduffy]

nearly 25% down in three days. seems a bit of an over-reaction to the loss of an interim dividend.
are there other reasons to bail out? Cheers.

I don't know about an over-reaction. NZR is very much regarded as an income stock and held for that reason. I can understand holders taking the view that if there's no div ( at least this time and some analysts are picking there'll be no final div, a bit prematurely IMO ) then the reason to hold NZR disappears.

Also it's a thinly traded stock so price movements tend to be a bit abrupt at times.

[Billy Boy]

Scamper;
Words out, NZR will probably show a loss next year.
Molbil, Shell... Both getting the itches !!
Could well be a bad patch for a bit with such low margins.
I dont hold and was thinking of getting in, now I'm not so sure
cheers BB

[Dr_Who]

I am assuming those that bought with expectation of a possible T/O are dumping the stock?