Forum Archive Index - October 2000

["Gary Rountree" <gary.rountree@xtra.co.nz>]

To add to this discussion:

 

The published asset backing will be because Infratil values their investments in their accounts at cost. Their 3 largest investments are POT, Trustpower and Wellington Airport.

 In the case of both  POT and TPW their holdings were purchased somewhere between $1.25 - $1.75 against current market prices of $3-$5.50 range. This is the main reason their published asset backing is only 89c when at market prices it is somewhere around the $2 mark.

 

I have held IFT since they floated and they have been an excellent investment despite being out of favour in the last year or so due to the hype of the tech. stocks and the concerns as how this governments inquiry into the electricity sector may affect the earnings of their investment in Trustpower.

 They are a cheap entry into the utilities sector given the significant discount to market values and they offer attractive dividends. Given the far higher yield to GPG they are arguably more attractive, however you can't really compare them to GPG in my opinion as they are totally different types of investors operating in different markets.

IFT are a cheaper entry point into the port sector and are far less risk in this respect given the significant discount to true asset value, the attractive yields and the increased diversification.

 

 

This company is definately not a punters stock, but they have consistently increased EPS/DPS/NTA each year and

 

Regards

Gary