Well, looks like we passed the peak - and it didn't had a 4 handle. Remember the overbought RSI and the out of Bollinger bands - all down from here?
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still holding up for the hoped for 4 dollar party
I know it’s an arbitrary number, but looks like we’ll that NZD 4.00 mark today (market cap NZD 2,214,741,537.00 :) )
Infratil is a well run company, sticks to its knitting, but why the run up now? My theory is that it is a good place for landlords to park the tax free proceeds from selling their rentals. Same with the gentailers and retirement sector.
Sales by landlords fly under the radar, mostly, because of one here, one there. Anecdotally some are selling. Some harder data from me, albeit in a small way. We have lost 3 landlords as clients, all long term, in the past year. One has just sold a block of 4 in Wellington's most expensive suburb, settlement next month. Another has 2 on the market, another sold 1 and we are helping a fourth to get ready to sell. (We do property maintenance.)
Well, you got your $4 party - congratulations! Suppose you are out by now?
While IFT is no doubt a solid investment fund (wouldn't call it a company), looking at their EPS as well as historic and forecasted growth, they are clearly not a growth company - at best a boring cyclical.
Average EPS over the last 10 years is 26 cents; Forward EPS (3 years average) is 16 cents - meaning forward PE is 24.5 ... and this for a proven no-growth company. We looked already at EPS (which dropped quite significantly compared to average). 2010 revenue was $1836m, 2021 forecast is $1845m. Spot the trend? Flatlining revenue and dropping earnings ...
Beats me why anybody wants to pay $4 for this company ... what am I missing?
They make their money buying and selling assets and they are good at it. athey are in the right sectors,renewable energy,data centers, age care and are ruthless in dropping bad investments,. Good firm I keep adding but have to buy at right time.
With major assets in places like Tauranga, Wellington, Australia etc IFT probably doesn't have the profile in the South Is. as in some other areas!Quote:
Beats me why anybody wants to pay $4 for this company ... what am I missing?
;)
Sorry, BP. Being an old native Cantabrian I couldn't resist that. :)
Interesting - I didn't realise that they have secret assets. Probably a disadvantage to live far from the big smoke and the big rain ... ;);
Their official asset backing (NTA) is (according to direct broking - sorry, was too lazy to check the balance sheet) $3.03.
Sure - not bad ... though some of their assetts might not be that easy to liquidate if they have to ... but than, others might be.
If you want to know how much e.g. a $120m windfarm (NWF) can be worth on the market if you need to sell - look no further than Palmerston North ;). And hey - NWF are at the moment quite dear (nearly $40m marketcap) - some years ago the market paid less than half of that for the $120m investment.