Transurban is a major toll road investor with concessions to operate 14 Australian and two U.S. motorways. Concessions grant the right to operate the roads and collect tolls for predetermined amounts of time. The core Australian roads are integral parts of the motorway networks in Australia's three largest cities: Melbourne, Sydney, and Brisbane. Granting toll-road concessions allows governments to use private capital and expertise to provide necessary improvements to road networks. Typically, concession life and toll profiles are set in negotiation...
Fletcher Building and investors alike find themselves at a fork in the road, facing a difficult decision about which direction to take. Investors must decide whether to buy, sell or hold a stock where strong arguments could be made for all options. Fletchers face a multitude of different choices to solve their current woes. These range from asset sales, to capital raisings, or merely renegotiating their debt to relax their covenants. Before we explore Fletcher’s options, and the implications that would...
The global financial crisis highlighted the enormous fiscal cost governments can incur in providing financial support for troubled banks. A major challenge for policy-makers is how to limit the disruption of a bank failure on the economy whilst minimising the overall cost to the taxpayer. At the same time, it is important that resolution options do not erode market disciplines on bank creditors to act prudently in their dealings with the bank. The Reserve Bank first began considering options for responding...
New Zealand shares rose today, with Green Cross Health and Meridian Energy gains overcoming a downgrade for Orion Health. The S&P/NZ50 Index gained 10.86 points, or 0.13%, to 8329. Turnover was $118 million. “We’ve had a poor trading day for Orion Healthcare, which had a negative revenue update this morning and a bit of a change in strategy so the market (is) not treating that too kindly,” Hamilton Hindin Greene investment adviser Grant Davies says. Orion Health led the index...
Cash & Term Deposits - Not what they used to be... Introduction The global financial crisis highlighted the enormous fiscal cost governments can incur in providing financial support for troubled banks. A major challenge for policy-makers is how to limit the disruption of a bank failure on the economy whilst minimising the overall cost to the taxpayer. At the same time, it is important that resolution options do not erode market disciplines on bank creditors to act prudently in their dealings...
Tom McBride talks to Grant Walker from NBR Radio regarding the state of the economy and half year earnings results. Companies of interest include a2 Milk, Summerset Holdings, Metlifecare, Sky TV and CBL. Most companies reporting results this earnings season have pulled a reasonably good performance out of the hat, with the exception of a few market shockers.
New Zealand markets are playing catchup today, after a rocky day of global trading yesterday. The NZX was closed for Waitangi Day yesterday, but the S&P/NZX50 was down 1.97% at market open today. Within the index, 47 stocks had fallen, with three up, on turnover of about $35 million. “I think we’ll have a bit of a catch-up day today,” Hamilton Hindin Greene investment adviser Grant Davies says. “At the moment, the Dow is broadly flat. But I’d expect our fair...
MARKET UNDERVALUES WOODSIDE Research would suggest that Woodside is currently 20% undervalued. This would rate it as the best value of the three large Australian exploration and production companies; the others are Santos and Oil Search. The recently upgraded AUD 40.00 fair value estimate assumes 60% growth in annual production to 130 million barrels of oil equivalentby 2024. We don't believe the market sufficiently credits Woodside's ability to complete a capital-efficient second Pluto LNG train, nor its ability to increase North...
