Infratil

[Wakefield]

Hi Everybody, I am a new investor and am thinking seriously about several shares and in particular Infratil. Bought at 2.90 and found that, despite all the positives re airports etc they seem to be pegging back fairly steadily.

Anyone any thoughts why this is happening?

[duncan macgregor]

Last year at this time the share price was roughly 36% below what it is today, so if you had invested then you would have had a really good return on your money. Share prices get to low, then to high with the novice investor inclined to buy at the higher end of the scale. It is always easier to think the sp will go up for ever when most buy signals are given out at the top. The time to buy is when the share is oversold and the time to sell is when it becomes overpriced. Market sentiment has more influence on a share price than basic fundamentals. Dont get to wrapped up in a company learn to read the market and where it will take the various companies in the future.
Macdunk

[TOM.]

infratil is on a PE ratio of 35 ie. returns of <3 %. The banks are now offering 8%, you'g do better putting your money there in my opinion

[Mcycle]

I see Infratil as a long term investment - well managed, well diversified. I suspect the recent drift in price is caused by both wider market uncertainty due to USA Mtge Market, and IFT's recent split making it hard to value. That said, recent news that IFT is in the box seat with Carbon Credits has led to a surge in its price to $3.15 (21/9) so sit back and hold on..... my only negative is concern that Morrison & Co could cream the profits???

[goatpointer]

Infratil buying up Shell's discards doesn't seem right. Shell have been refining & selling petrol for decades so why does Infratil, who have no experience or expertise in this field, think they can do better? Keen to hear other readers comments.

[Snoopy]

Originally Posted by goatpointer

Infratil buying up Shell's discards doesn't seem right. Shell have been refining & selling petrol for decades so why does Infratil, who have no experience or expertise in this field, think they can do better? Keen to hear other readers comments.

Infratil are buying a vertically intergated fuel delivery system, not just a series of front line petrol stations. The petrol stations are the public face of Shell. But I suspect Infratil are more interested the 'wholesale' side of things: NZ refinery shares, storage tanks and delivery pipelines, aviation fuel supply contracts etc. They might even on sell off the front line stations to individual operators.

Shell's interest these days seems more focussed on international oil exploration, and the service stations while not 'tired' like the Mobil stations, haven't had much spent on them over the last ten years. I would give Infratil a better than even chance of doing a good job.

Whatever happens, I think Infratil's best energy investment may remain Trustpower. And if can buy the same company directly, why introduce an extra layer of management fees to buy the same asset through a shareholding in Infratil?

SNOOPY